AB624: California Diversity Legislation
What is the best way to ensure that private grantmaking foundations are diverse and inclusive in the composition of their boards, staff, and grantees?
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 agree 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 AB624, 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 AB624 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 AB624 continues to provoke discussion. We encourage you to add your thoughts and opinions through our DPP BLOG
Articles, editorials, and position statements:
- Blog Post: AB 624: Death For A Noble Cause by Robert K. Ross, M.D.
- Op-Ed: California's Legislation Won't Achieve True Diversity at Foundations, By Mark Rosenman
- “Tax-supported foundations must reveal diversity data,” by John C. Gamboa, Executive Director of the Greenlining Institute
- Foundations Should Embrace Diversity and Effectiveness by Aaron Dorfman, NCRP
- “Council on Foundations Opposes California Assembly Bill 624” – a position paper from the Council on Foundations
- “Red Light on Greenlining” Adam Meyerson, The Philanthropy Roundtable
- “Diversity in philanthropy achieved through leadership, not mandates,” by Dr. Robert K. Ross
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/