Fundamentals for Funders

Addressing Racially Biased Financial Analysis

Why "race-neutral" financial analysis is racially biased, and what funders can do about it.

Many social-sector funders that are committed to addressing racial equity don’t understand how their own practices exacerbate injustice. Common approaches to evaluating a nonprofit’s financial fitness – and “readiness” for a grant or loan – unwittingly reinforce divides; nonprofits that have money have an easier time getting more, and nonprofits that don’t – and the communities that rely on them – lose out. This chart offers a look at what’s wrong, and specific actions we can take to more accurately understand a nonprofit’s strengths and opportunities.

Read the article "'Color Blind' Assessments of Grant Proposals Don’t Work. Here’s a Better Idea" by NFF CEO, Antony Bugg-Levine in the Chronicle of Philanthropy.