Tapping Into the Power of Multicultural Philanthropy

Nov. 29, 2005

By Kelley Chunn

The estimated economic clout of Asians, Latinos, African-Americans and Native Americans exceeds $1.3 trillion, and they aren't afraid to flex their economic muscle -- especially in terms of philanthropy.

Shortly after Hurricane Katrina, for example, The Twenty-First Century Foundation, an African-American philanthropic organization, reportedly raised $400,000 for black survivors. The Associated Press reported that when two storms slammed Central America this fall, it brought into sharp focus a trend among U.S.-based development organizations and Hispanic community groups: When disaster strikes, many groups send money directly to community organizations in the affected countries because donors do not want corrupt governments to get access to the funds.

So how can nonprofit organizations tap into this powerful giving demographic?

Effective outreach and culturally sensitive messages help create strong relationships with these groups. The first critical step to conduct outreach to communities of color is to understand their "cultures of caring." How do they give? Why do they give? What is their history of giving? Outreach also begins with sensitivity to cultural differences, an awareness of how audiences respond to cultural messages and the nuances of language.

Internally, diversity begins with the extent to which your organization is multi-ethnic. This includes your staff, board, committees, helpline, support groups and speakers bureau. Donors of color want to know their dollars are going to an organization that is committed to diversity internally and externally.

Here are some strategies to help nonprofits learn about and better connect with racially and ethnically diverse audiences:

Understand the complexity of the ethnic markets: African-American, Latino, Asian and Native American audiences respond to different kinds of cultural messages and have different kinds of language concerns. For example, Asian audiences comprise several subsets including Cambodian,Vietnamese, Chinese and Japanese. Latinos include, among others, Mexicans, Cubans, Puerto Ricans and Dominicans. African-American subsets include the Caribbean community; African immigrants such as Somalians and Nigerians; Cape Verdeans; and Haitians. Further, as in the mainstream market, there are class, age, gender and economic differences within these groups.