Council on Foundations Opposes California Assembly Bill 624
Calls for Leadership on Diversity, not Legislated Mandates
Source: Council on Foundations website: http://www.cof.org/index.cfm
Date: February 1, 2008
Arlington, VA— The Council on Foundations today announced that it is joining Northern California Grantmakers, Southern California Grantmakers and San Diego Grantmakers in voicing opposition to the passage of California Assembly Bill 624.
While the Council embraces the goals of diversity and inclusive practices across the philanthropic sector, it has serious reservations about the need for legislation and the potential negative impact of this legislation. “We are committed to promoting diversity within philanthropy, transparency in our work, and addressing the needs of our communities,” said Steve Gunderson, president and CEO of the Council. He went on to say that though the legislation is well-intended, it is unnecessary. On behalf of California foundations, the three regional grantmaking associations have already made commitments to conduct independent research, create a nonprofit advisory body to review the research and make recommendations to the philanthropic community, and provide a platform for minority leaders to meet and discuss approaches with foundation leaders.
If enacted, the bill would require philanthropic organizations with assets over $250 million to track and disclose diversity-related data for their boards, staff, nonprofit grantees and clients served through their grantmaking. By asking for individuals' race, ethnicity, gender and sexual orientation, it could violate privacy rights.
“Though well-intended, the state-mandated collection of data listed in this legislation is both burdensome to accurately collect and would be onerous to the efforts of grantee organizations (our nonprofit partners) in serving their clients,” said Gunderson. “These requirements could divert critical charitable resources away from community programs to bureaucratic recordkeeping and collection.”
The California Regional Associations requested that the Council use its leadership role to educate policymakers, foundations and corporate giving programs and the public regarding the impact of this legislation, both in California and throughout the nation.
“While opposing A.B.624, the Council calls upon all of philanthropy to join us in a growing commitment to increase our value for and leadership to the importance of diversity and inclusiveness in all that we do,” Gunderson said.
A Council resolution supporting the California Regional Associations’ opposition to A.B.624 was approved by the public policy committee of the Council on January 29 and by the executive committee of the Council’s board of directors, on behalf of the board, on January 30.
The Council on Foundations is a Washington, DC, area-based nonprofit membership association of more than 2,100 grantmaking foundations and corporations. The assets of Council members total more than $282 billion. As the voice of philanthropy, the Council works to create an environment in which the movement can grow and thrive, and to provide Council members with the products and services they need to do their best work. For more information on the Council, visit its website at www.cof.org.