Black Americans have a long and distinguished history of philanthropy, the antecedents of which are rooted in ancient African traditions. The myriad expressions of our giving have been influenced both by our love for each other and by the crucible of racism and socioeconomic isolation that we endure. Despite the fact that we have hovered near the bottom of the economic scale, we have demonstrated an astonishing selflessness vis-à-vis our generosity to economic, social, educational, political and religious needs — often to the point of deep personal sacrifice.
Moreover, our grandparents remained committed to philanthropy despite the reality of violent retaliation from whites who opposed causes such as education, civil rights and economic empowerment. Thus, Black philanthropy has often gone far beyond that which is “nice to do.” It has been (and remains) essential to our material, emotional, spiritual and even physical survival.
Research consistently demonstrates that African Americans are, based on our income, the nation’s most generous racial group. In other words, relative to the size of our respective incomes, we give more of our money to charitable causes as compared to other Americans. (African Americans have the lowest average income of any racial group other than Native Americans.) Indeed, according to a report by the Kellogg Foundation, Blacks give 25% more of our annual income to charity than do whites. The report also found that “nearly two-thirds of African-American households donated to organizations and causes, totaling $11 billion each year.” Further, according to Giving USA, which is the most-respected annual study of American philanthropy, our giving is more than half of the amount that corporations gave to charity in 2018 (i.e., $20 billion). African Americans have much about which to be proud.
Given these facts, it might come as a surprise that I am calling for us to increase our philanthropy. I argue this for at least two reasons. One is that the economic need was stark (and growing) even before the coronavirus pandemic, which has exacerbated the situation. Second, it is critically important to recognize the “other” golden rule: He who has the gold makes the rules. Philanthropy, especially as regards education and economic empowerment, is one of the primary factors in fostering self-determination. This is not to suggest that other causes, such as meeting basic needs, are unimportant. Rather, it is to say that the benefits of increasing one’s education and producing generational wealth have a direct impact on all other causes. (It turns out that DuBois and Washington were both right.)
It is reasonable to ask how African Americans can afford to increase our giving, especially given our lack of wealth relative to other racial groups. Part of the answer is that our combined annual income is estimated to be at least $1.3 trillion dollars. While billionaires like Oprah Winfrey and Robert F. Smith have given eye-popping amounts to worthy causes, their largesse pales in comparison to our collective giving. Further, if we were to substantially increase our financial literacy, and rigorously practice delayed gratification, we could substantially move the needle on many of the challenges that we face.
Twelve years ago, I wrote the following in an op-ed for the Indianapolis Recorder: “I will end by highlighting my favorite philanthropist, Oseola McCarty. Miss McCarty, who passed away in 1999 at age 91, is famous for donating $150,000 to the University of Southern Mississippi. The donation created an endowed scholarship in her name at the school, which formerly refused to admit blacks. By today’s standards, her gift might seem small. That is, until one considers that Miss McCarty spent more than 75 years washing and ironing clothes for a living. Initially, she charged $1.50 to $2 per bundle; by the time arthritis forced her to retire (at age 86) she charged $10 per bundle.”
I am proud to be a founding member of the African American Legacy Fund of Indianapolis (AALFI), which is a donor-advised fund that is managed by the Central Indiana Community Foundation. I call upon all African Americans, as well as our allies of any race, to support such organizations. While it is more blessed to give than to receive, we receive every time we give.
Larry Smith is a community leader. Contact him at larry@leaf-llc.com.
