Tag Archives: equality

Why Budget Testing is a terrible way for foundations to determine funding allocation

spiral-1081904_960_720A while ago, I wrote “When you don’t disclose salary range on a job posting, a unicorn loses its wings.” The post highlights the importance of salary transparency from the beginning of the hiring process. It also talks about one of the dumbest and most damaging hiring practices we have: Using salary history to determine the starting pay of new hires. This practice ensures that people who have been underpaid—primarily women and people of color—continue to be underpaid. We, the sector fighting for equity and social justice, must end this archaic and destructive practice immediately.

As I’ve been thinking more about how we treat individuals in the sector, I’ve been noticing that there is a parallel to how we treat organizations and even whole communities. A parallel to using salary history at the organizational level is something I’m going to call “Budget Testing.” This is when funders have rules regarding how much funding an organization can apply for based on its budget size. Many foundations, for example, will not fund an organization for more than 10% of its budget. Others have set limits, such as organizations with budgets less than $1M can only apply for $25,000, and those over $1M can apply for $100,000. Continue reading

Why Equality is actively harmful to Equity

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A few weeks ago, I gave a keynote speech to a large group of youth involved in philanthropy, along with a few of their parents and mentors. My topic was “The Role of Equity in Philanthropy.” It was awesome that we had kids ages 8 to 24 engaged in grantmaking and other aspects of philanthropy. They were smart and hungry and full of hope and possibilities, bright minds not yet beaten down to a haggard shell haunted by endless grant rejections and complex community dynamics and the sudden dawning realization of the ephemerality of existence, cowering in the supply closet on a fold-out cot, cradling a stuffed unicorn while Green Day’s “Boulevard of Broken Dreams” plays softly from a phone.

(What, like your Friday nights are soooo much more exciting.)

“As budding philanthropists,” I said to the youth, “you have probably seen the illustration of the difference between Equality and Equity. You know, the drawing of those kids standing on those boxes looking over a fence at people playing baseball.”

As if on cue, two kids came up to the stage with a drawing they had done earlier of the iconic image on easel paper. I stuck it to the lectern. “Get used to this image,” I said, “Have it burned into your mind. Because you will not be able to avoid it. It will haunt your dreams.” Continue reading