Diversity In Philanthropy

AB624: California Diversity Legislation

Sector Leaders Respond to AB 624 and the California Compromise

In response to Dr. Robert K. Ross, M.D.’s recent blog post we asked four leading California philanthropy practitioners and diversity advocates to share in-depth analyses on the local and national implications of AB 624’s recent withdrawal in exchange for voluntary philanthropic leadership efforts to increase foundation diversity performance in California.

Specifically, we sought lengthier comments from four leading Californians:

Orson Aguilar, Executive Director, Greenlining Institute
Angela Glover Blackwell, Founder and Chief Executive Officer, PolicyLink
Stewart Kwoh, President and Executive Director, Asian Pacific American Legal Center
Roger Doughty, Executive Director, Horizons Foundation

Greenlining Institute’s Orson Aguilar respectfully declined to provide a comment at this time; however, the submissions provided by our other three featured commentators offer provocative and important reading. We strongly encourage our readers to carefully review these particularly informed leaders’ thoughts.

For a broader national perspective, we also asked a handful of other highly respected field leaders and observers, both from California and elsewhere, to provide brief reactions and comments. These additional leaders include the following:

Ronna Brown, President, New York Regional Association of Grantmakers
Aaron Dorfman, Executive Director, National Committee for Responsive Philanthropy
Carol S. Larson, President and Chief Executive Officer, The David and Lucile Packard Foundation
Valerie Lies, President and Chief Executive Officer, Donors Forum (Illinois)
Janet Murguia, President and Chief Executive Officer, National Council of La Raza
Mark Rosenman, Director, Caring to Change, Union Institute & University
Rob Collier, President and Chief Executive Officer, Michigan Council of Foundations
Diana Campoamor, President, Hispanics in Philanthropy
Carol A. Goss, President and Chief Executive Officer, The Skillman Foundation, and the 2007 Association of Black Foundation Executives James A. Joseph Lecturer

We urge you to let us know what you think of organized philanthropy’s response to proposals for legislative interventions to advance foundation diversity and inclusivity. If you would like to share a perspective or comment of your own, please add it to the DPP Blog or email us at info@diversityinphilanthropy.org.

Download all commentaries

AB 624 – History and Additional Resources

In January 2008, the California Assembly passed AB 624, a bill sponsored by Assembly member Joe Coto (D, San Jose). This unprecedented bill would have required foundations with assets of more than $250 million to disclose the race and gender composition of their trustees, staff, and grantees. The bill would have also required disclosure of the number and percentage of grants awarded to organizations serving the lesbian, gay, bisexual, and transgender (LGBT) community, as well as "ethnic minority communities."

In June, Coto agreed to drop his support of the bill, in a compromise with ten of California’s largest foundations that have pledged to make a multi-million dollar investment in the state’s underserved communities.

Reaction from the philanthropic community was – not surprisingly – mixed. The legislation raised complex issues and sparked important discussions about the most effective strategies for ensuring that organized philanthropy is responsive and accountable to our diverse society. Foundations, argues the Greenlining Institute, the leading public proponent of AB 624, generally perform poorly relative to diversity and inclusiveness concerns in areas ranging from institutional appointments to grants and contracting.

The Institute posits that because foundations receive a $40 billion annual subsidy as a result of their tax exempt status they should be required to serve “the entire public good.” The bill’s opponents countered that AB 624 would impose onerous paperwork requirements on undercapitalized grantees, undermine donor intent and discourage the growth of philanthropy in California.

The Diversity in Philanthropy Project is committed to providing timely information and hosting a forum for discussion that reflects the issues’ true complexities. The editorials and statements below provide a starting point for widespread field exchange. We will continue to update this portion of our website as AB 624 continues to provoke discussion. We encourage you to add your thoughts and opinions through our DPP BLOG

Articles, editorials, and position statements:

Additional Links:

Add your voice and opinion to our blog: DPP BLOG
Read the AB 624 Legislation: http://www.bayareanewsgroup.com/multimedia/mn/news/AB624.pdf
National Committee for Responsive Philanthropy (NCRP) blog: “keeping a close eye…”: http://www.ncrp.org/blog/
Greenlining Institute: http://greenlining.org/