Micro-loans, in which poor people are provided small loans so that they can jump-start or grow an enterprise, are often associated with least developed countries, but, according to a new study, this model has proved highly effective when applied to poor American women over the last decade.
The Grameen Bank model was pioneered in Bangladesh during the 1970s and 80s, and aimed to reduce poverty through the provision of loans, financial training, and peer support to those unable to access traditional credit mechanisms. It turned out a that small amount of funds enabling the purchase of such basics as tools, seeds, and livestock enabled many to lift themselves out of the most desperate kinds of poverty.
“There’s a time and place just for grants, and there’s a time and place for gender lens investing, but if you can find that sweet spot where they come together, that’s what gets me going,” says Katherine Pease, Managing Director and Head of Impact Strategies for Cornerstone Capital.
For Pease, the two strategies of gender lens grantmaking and gender lens investing can play a complementary role, particularly when using the Donor Advised Fund (DAF) as an investment vehicle. For women’s funds and foundations, Pease sees an expanding use of DAFs to create new ways to reach women at all levels of society with resources to grow their power.
Take it from Phaidra Knight, retired professional rugby player, who speaks in the above video about the value of funding initiatives like Sports 4 Life:”It really doesn’t matter your speed, your size, it’s just what you bring, your unique self, to the game,” said Knight. She went on to emphasize that with sports, young people have the opportunity become part of a team, which can lead to personal growth and improved self-confidence. “I think it’s so important, especially that girls from disadvantaged backgrounds have that opportunity. That is sometimes their ticket and access to greater things across the board.”
The Sports 4 Life Initiative is particularly aimed at increasing and retaining African-American and Hispanic girls in youth sports programs. Sports 4 Life was cofounded by the Women’s Sports Foundation and espnW in 2014. This year, the Ralph C. Wilson, Jr. Foundation also joined the initiative, providing regional support to eight organizations in Southeast Michigan and Western New York.
Happy Women’s History Month. There are only a few days left to this month of focusing on the value of gender equality and the arc of its progression throughout time. I spent a lot of time this month researching and thinking about how women’s funds feed social change. Most of what I learned reinforced the theory that women’s funds represent a unique approach to philanthropy that the rest of the sector would do well to replicate.
My last piece for Women’s history month on this topic is published at Daily Kos, a site dedicated to the larger sphere of progressive political change.
As Philanthropy Opens Up, Women’s Funds Show the Way
Something unusual happened recently in philanthropy: Bill and Melinda Gates opened their annual letter by answering 10 “tough” questions from the public about their philanthropy. The Gates’ Q&A is just one example of philanthropists becoming more responsive to the public. Funders are growing more aware of the value of engaging with the communities they seek to serve. The Fund for Shared Insight (FSI) which is dedicated to bringing more openness to philanthropy, is cultivating this trend; it added five new foundations, including the Bill and Melinda Gates Foundation, this past year: Einhorn Family Charitable Trust, James Irvine Foundation, Rockefeller Foundation and Omidyar Network, bringing the number of funding partners in the collaborative to 39.
Looks like there is some fun to be had in Boston on February 15th, as the Lesbian Political Action Committee (LPAC) holds its first fundraiser of 2018. The event will feature political humorist Kate Clinton, as well as Attorney General Maura Healy.
“This is a critical year for LGBTQ people, women, people of color and all progressives, and we hope the Boston community joins us to learn how we can support progressive candidates and advance positive policy outcomes,” said Diane Felicio, a Boston-based member of LPAC’s National Board, in a press release announcing the fundraiser.
With Christmas over, it’s now time to get down to business and develop a strong agenda for 2018. At the top of that agenda for progressive donors, in my opinion, is repealing the Trump Tax that recently passed. This legislation does more to hurt the middle class and nonprofits than can be tolerated in a society that still prides itself on equality and freedom.
Here are just a few choice details about how this law will deter giving for the middle and upper middle class. The law’s discouragement of itemized deductions by raising the standard deduction for married couples to $24,000, is estimated to reduce the number of itemized tax returns from the current 30% to only 5%. That means only 5% of people will have enough charitable and other deductions to qualify for itemizing their taxes. This change strikes a devastating blow to families in the $70,000 to $200,000 income level, who often stretch their giving in order to qualify for the charitable tax exemption at $12,000. Between the mortgage interest deduction and the charitable deduction, some middle class families would be able to qualify for the $12,000 deduction threshold. By giving an extra two or three thousand or more, they are often supporting nonprofits in the community (their local church, food bank, or domestic violence shelter) getting a tax break, too.
I’m excited about the #FundWomen Twitter Chat, starting tomorrow at 11 AM EST. Also joining the conversation: clothing company Michael Stars, which has a foundation and uses its philanthropy to effect positive change for women.
Below is a sneak peek of a few of my upcoming tweets!
Here’s part of my answer for Question #2: How and why do you opt to fund women’s rights organizations?
Today at Northeastern University in Boston, Chelsea and former President Bill Clinton are convening CGI U 2017 with the theme, “Students Turning Ideas Into Action.”
Sounds like great stuff from beginning to end, with sessions on building communities, migrants and refugees, designing projects, raising money, and increasing organizational capacity, to name just a few of the happenings taking place over the three day conference. A full press release is here.
Because of our interest here at Philanthropy Women in attending to marginalized populations and vulnerable groups, I would like to call attention to the sessions on Sunday, which include LGBTQ equality, homelessness, and campus rape and sexual assault. These three focus areas are particularly important and timely subjects to be discussing, given that the social safety net of health insurance for vulnerable groups is being threatened, the President has taken direct aim at trans people serving in the military, and much concern has been raised about Betsy De Vos’s actions in dismantling protections for sexual assault victims on campuses.
Recently, I got an email from Stephanie Gillis, Senior Advisor at the Raikes Foundation, wanting to “explore potential synergies” with the work we are doing at Philanthropy Women. Naturally, I was eager to do so, and soon learned about Givingcompass.org, a new team effort of several foundations and nonprofits, aimed at drawing on the chops of the tech sector in order to provide more resources for the philanthropy sector, particularly around how to assess the quality of philanthropy and get the most impact per philanthropy dollar.
It’s Time Network hosted a conference call this past week that gave a window for states across the country to learn about California’s efforts to grow gender equality movements. The call featured Jessica Stender of Equal Rights Advocates, who has been coordinating and enacting many steps of a legislative agenda for women in California. The call was well-received nationally, with people registered from 16 states.
From Betsy McKinney and the It’s Time Network team:
Thank you for joining us for Tuesday’s virtual convening to learn about how we can support policy agendas that lift women and children out of poverty, ensure fair pay and family-friendly workplaces, and more, focusing on the Stronger California legislation.