The Problems With Philanthropy, and What We Can Do to Fix Them

Carmen Rojas headshot
As I step into a new role where I can provide support for people of color, I recognize philanthropy’s faults. I was not raised with ambitions of becoming a philanthropist or an understanding that a system existed to incentivize people to give their wealth under the guise of helping others.

I grew up in a household that didn’t need those incentives. We just gave. My parents were the first two people in their respective families to immigrate to the U.S. from Nicaragua, and with that came a responsibility to open our home to those making the journey to this new country.

My mom was one of the first homeowners in her family, making our kitchen counter, our living room, and our space the obvious places to eat, celebrate, and plan for our collective future and freedom. My family didn’t do the calculations of tax breaks or write-offs. They just did, like so many others do, the work of remembering that our fates are tied together and when one of us has some space to breathe, a place to rest, and food to eat, we are all better off.

I heard the whispers after meetings about how to “talk” to funders and manage them so that good work could still have the resources it needed.

Like many young people who wanted to be of service, I spent the early days of my career navigating the idiosyncrasies of foundations and funders. I witnessed some of the smartest people I knew folding themselves into pretzels for grants. I saw how consultants who had never lived in my community were funded to shape its future. I heard the whispers after meetings about how to “talk” to funders and manage them so that good work could still have the resources it needed.

I have since spent most of my professional career working with donors, foundations, and funders. My first fellowship out of college was mapping grants going to organizations led by Black and Latinx leaders in California — research that would lead to a push to legislate funding in the state. I’ve worked with donors seeking to protect and expand the right to vote and address our climate crisis, as well as funders who were reluctant to talk about the impact their dollars had on immigrant communities, communities of color, and low-income communities. I’ve been a program officer, grantee, and a board member of foundations. In each of these jobs, I have done my best to plant the seed that another way of funding is possible.

In 2020, I will assume the role of President and CEO of the Marguerite Casey Foundation. I will be leading one of the only nationally endowed foundations to primarily offer multiyear general operating support to organizations overwhelmingly led by immigrants, Black people, and people of color. It’s worth mentioning that I will be the only Latina and one of the youngest presidents of a nationally endowed foundation. Giving has never been more important in my life.

Philanthropy is experiencing an existential crisis. Academics and journalists argue the destructive role of institutional and individual donors purporting to advance racial and economic justice in communities across the U.S. These writers and researchers have highlighted the conflict between the often exploitative process of getting rich and the seemingly absolving process of philanthropic giving that follows. They demonstrate how the history of giving in this country has in fact threatened our democracy and exacerbated income inequality.

From within the sector, there have been less sophisticated calls for reform. We have witnessed the rise of a consultant class, promising to show donors the “right” way to give away their money or the “clean” way to support movements. I am less convinced by these claims and deeply compelled by assessments of those looking at us from the outside. What I know to be true is that both within and outside the field of philanthropy there are important questions about our role, value, and future that deserve our attention.

We are often motivated by a belief that our institutions are more precious than the people we purport to serve. This is not true.

On the one side, philanthropy is increasingly calling for transparency, more progressive people of color in leadership, and accountability for the ways our dollars can distort and destroy. On the other side, we value presence over power. We are unwilling to engage in the debates of our time beyond websites and newsletters. And we are often motivated by a belief that our institutions are more precious than the people we purport to serve. This is not true.

In my first year of community college, I read Song of Solomon by Toni Morrison. Over the years, I have come to deeply admire what she had to say. Her stories about Black women, families, and communities helped this young Latina imagine an America that was not on my TV or in my textbooks. She was a Black writer who told stories for Black people that offered us all a richer American history and narrative. She is known for telling her students, “As you enter positions of trust and power, dream a little before you think.”Dreaming is the gift we have at foundations, and it is often lacking from our most visible leaders.

Too often, when we make it to the top of our fields and institutions, dreaming is discouraged. We are, instead, told to assimilate and conform. We are told that in order for us to stay in these coveted positions, we must sacrifice some of our own. We are told not to be too political. The unfortunate result is that we often confuse ideology and values with partisanship, leaving a whole universe of dreams and possibilities on the table.

Here are my dreams: I dream of a world where everyone sleeps with a roof over their head and can eat when they are hungry; where everyone can see a doctor when they are sick; where everyone can provide care for themselves and their loved ones; where we are all stewards of the natural environment. I dream of a world where our democracy is representative and transparent; where taxes are the way we build a safety net and serve the majority of us; where cages aren’t how we heal or keep people; where we are not afraid to name those who work against our collective well-being; where social movements aren’t tethered to those who may not want them to win; where we can grapple with the White supremacy of our founding while building the anti-racist institutions of our future. I dream more about ending racial capitalism than I do about diversity, equity, and inclusion. I dream a lot about us and the greatness that we can achieve when giving to and of each other is incentive enough.

So, I am committed to giving all of myself in this next chapter of my work. I am committed to using every resource available to me — from the dollars to the platform — in service of social movements and storytellers. To lift up those building a democracy and an economy that works for everyone. To stand shoulder to shoulder with my trans and queer brothers and sisters. To make people of color and immigrants the protagonists of our collective story. To address the needs of those who work and are poor and those who are unhoused. Most importantly, I am committed to being of service to those who dream in ways that may not be my own but dream in the direction of freedom nonetheless.

Article reposted with permission from Zora by Medium

woman surrounded by colorful illustrations
Image by Sayuri Jimenez.

Nathalie Molina Niño has never been one to shy away from breaking barriers, and now, she’s focusing her attention on a new mission: demystifying corporate boardrooms for women, especially Latinas. Molina Niño is the President of Known, an asset management and financial services firm, a veteran tech entrepreneur and builder capitalist, and a board member at the iconic lingerie Brand, Hanky Panky, and others.

Like many corporate boards, Hanky Panky hadn’t publicly disclosed its board composition until recently. After the brand survived the challenges of the COVID-19 pandemic, Molina Niño decided it was time for more women, specifically more Latinas, to know what it means to be on corporate boards.

Coincidentally, the decision to finally be more vocal about this topic aligned with the start of Hispanic Heritage Month, which served as the perfect kick-off to the work.

"Something that rarely gets talked about and I think almost gets kept opaque by design is boards,” she explains in a recent Instagram announcement. “[This Latinx Heritage Month], that’s what I’ll be talking about.” Her goal? To equip more Latinas with the knowledge they need to navigate onto for-profit boards, where they can thrive and build multi-generational wealth.

For-profit corporate boards often feel like an exclusive club. And in many ways, they are, especially for Latinas, who hold the smallest percentage of board seats in Fortune 500 companies compared to other racial groups. According to the latest report from Latino Board Monitor, while Latinos hold 4.1% of these board seats (compared to 82.5% held by white people), only 1% go to Latinas. Molina Niño, a first-generation American of Ecuadorian and Colombian descent, is part of this boardroom minority.

When asked about her experience as a Latina board member during a recent Zoom interview, she said, “It’s been lonely. There’s not a lot of Latinas on boards.” She went on to explain that even serving on boards of Latina-founded businesses gets lonely because, “A lot of the times, people who serve on their boards represent their investors and, as a result, [...] you still don’t see a lot of Latinas on those boards.”

This lack of representation drives Molina Niño’s determination to increase Latina presence in corporate boardrooms. By sharing her insights, she hopes to give Latinas a roadmap to claim their seats at the table. “If you don’t know where to go, it’s impossible to figure out how to get there,” she says.

The Road to the Boardroom

Getting onto a for-profit corporate board isn’t an overnight achievement, but it’s not an unattainable dream either. People often think you need to be a CEO or have a certain type of background, but that’s one of the biggest myths about boards in Molina Niño’s experience. What they’re really looking for is expertise — whether that’s in finance, marketing, sustainability, or even technology. If you have that expertise, you’re already an asset. It’s simply a matter of which road you should take.

Understanding what boards are and how they operate is key to unlocking opportunities. For-profit boards serve as the governing body for companies, overseeing direction and financial stability, and guiding CEOs and executives in decision-making. But Molina Niño emphasizes that not all for-profit boards are created equal.

“There are two kinds [of for-profit boards] [...]. There’s the publicly traded business board and then, on the privately held side, there are, I would argue, two types of boards [...] the traditional business board and the venture-backed business board,” explains Molina Niño. Traditional businesses are often family-owned or long-established and may only form boards to meet requirements, like securing financing or transitioning through an ESOP. Venture-backed boards, on the other hand, are typically filled by investors who hold major stakes in the company.

According to Molina Niño, understanding the difference between them is how you can create a successful strategy. With publicly traded business boards, the whole world is privy to them, so, “The way that you get in there is a little bit more transparent. Sometimes those publicly traded companies will hire a recruiter to help them find new board members,” explains Molina Niño. For private companies, on the other hand, there’s no legal requirement to make announcements. As a result, most people don’t know anything about them or their inner workings.

“Usually what happens in traditional businesses that don’t have venture-capital investments is that the Founders, Executives, or the board members, if one existed already, they usually go to their friends,” and people they deem experienced to fill board seats. In other words, it’s the founder’s decision, and that’s an entirely different approach than hiring recruiters. When it comes to venture-backed business boards, the seats on the board are filled by whichever investor writes the biggest check.

This is why an understanding of the different types of boards and acknowledgment of their own strengths is what will help Latinas define a sound strategy. Whether that’s working with a recruiter, networking and connecting with founders to build trust, or making the biggest investment.

The Path for Latinas

For Molina Niño, the key to getting more Latinas into corporate boardrooms is education. Knowing what a board looks like and how it functions is how you can position yourself to get on it. In openly talking about this, without the mystique it’s usually shrouded in, Molina Niño is providing women, especially Latinas, with invaluable insights. “If we had Latinas understanding what are the three types of for-profit boards I think that, on their own, they would be able to figure out what their best chance is and adjust their careers to make themselves more competitive,” states Molina Niño.

When asked about the impact of increased Latina representation in boardrooms, Molina Niño flips the narrative. “Boards don’t help Latinas by offering them seats; Latinas help businesses thrive by being on their boards,” she says. “The whole point of sitting on a board is that you have experience and expertise, and as Latinas, you also have some cultural experience that everyone wants. [...] At the end of the day, we [Latinas] have to realize that we have a ton to offer and we have to be selective about where we put that expertise,” she explains.

As demand for access to the Latina consumer rises, Molina Niño predicts that more Latinas will find themselves recruited into boardrooms. But she’s not content to sit back and wait for that moment. By openly sharing her journey and insights, she’s making sure other Latinas know their worth and have the tools to claim their place at the table. “I realized that quietly being on boards that helped me personally is not helping other Latinas. [...] I was lucky enough to have friends who could advise me and share their experiences, so that’s why I’m doing this,” she stated.

With Hispanic Heritage Month as the backdrop, Nathalie Molina Niño’s mission is clear: “My goal is just to give Latinas enough information so they can make a plan for how to eventually get on a board that they’re paid to be on and that will eventually help them build generational wealth.”

flags of latin american countries fly behind performers wearing culturally traditional clothing

Ever noticed how September in Latin America is just one big celebration? As we wave goodbye to summer and avoid winter as long as we can, the streets come alive with parades, music, and festivities. Many Latin American countries celebrate their freedom this month, commemorating their hard-fought battles for independence from colonial domination. Let’s dive into these significant days and understand what makes each unique.

Keep ReadingShow less