RACIAL WEALTH DIVIDE

Economic Justice A Forgotten Aspect Of The Civil Rights Movement Goals of The Freedom Budget Abolition of poverty Full employment Full production / high economic growth Adequate minimum wage Farm income parity Guaranteed income for those who can’t work Decent homes for all Modern health services for all Full educational opportunity for all Better social security and welfare Equitable tax and money policies It is my understanding that economic inequality has always been the foundation of racial inequality. The white supremacist foundation of this country was one laid by economic want and desire that was fortified with prejudice and discrimination. The transatlantic african slave trade and the genocide of indigenous peoples in the Americas was fueled by a desire to build wealth and assets. The black freedom struggle of the 1960’s understood that there would be no ending of racial inequality without ending racial economic inequality and created an economic agenda that was captured in the 1967 freedom budget that was widely discussed but never implemented. The failure to adequately invest in racial economic parity has helped maintain the racial economic inequality that is so strong in the 21st century. 2

The Racial Wealth Divide

Little Advance in Income Equality

Lack of investment in Organizations of Color Studies demonstrate that there is a significant gap between the people who rely on nonprofits for critical financial and social services and the charitable organizations that serve them. According to the Annie E. Casey Foundation, at least 60 percent of nonprofits serve people of color. According to a study by Commongood Careers and Level Playing Field Institute, “Nonprofit employees are approximately 82 percent white, 10 percent African-American, five percent Hispanic/Latino, three percent other and one percent Asian or Pacific Islander.” According to the 2006 report by the Nonprofit Leadership Alliance (formerly American Humanics), up to 84 percent of nonprofits are led by Whites, and 95 percent of foundations and other philanthropic organizations are led by Whites. One of the foundational parts of our structural inequality is the failure to invest in communities of color. We at the RWDI of CFED has identified this structural part of the nonprofit economy where millions to billions is spent in addressing the supposed problems of people of color by disproportionately investing in white nonprofits and or individuals to deal with these problems. Building High Impact Non-profits to bridge the racial wealth divide. 5

Building High-Impact Nonprofits Building High-Impact Nonprofits to Bridge the Racial Wealth Divide project goals: Assist in developing high-impact nonprofit organizations of color focused on advancing economic opportunity nationally; Build an understanding of the intersection of income, assets and the racial wealth divide; Establish networks across sectors to have lasting local influence and advance social change; Improve relationships between organizations of color, local organizations and asset-building institutions; and, Equip organizations of color to become leading voices in local and national asset-building dialogues and decisions.  

Working with Local Organizations of Color We have learned that non-profits of color, in particular, are well positioned to serve communities of color. They are knowledgeable of the history and presence of financial and economic trauma in their affected communities and are able to develop programs, advocate for policies and share practices that are informed by the community. New Orleans, LA Ashe Cultural Arts Center Puentes LatiNola MQVC Community Development Corporation VAYLA New Orleans Jericho Road Episcopal Housing Initiative Miami, FL ConnectFamilias Hispanic Unity of Florida Miami Children’s Initiative Partners for Self-Employment Sant La Haitian Neighborhood Center.

New Orleans Data Profile

New Orleans Data Profile National Median Property Value- No verifiable data… From Economic Policy Institute as of March 2016: http://www.epi.org/publication/state-unemployment-rates-by-race-and-ethnicity-at-the-start-of-2016-show-a-plodding-recovery-with-some-states-continuing-to-lag-behind/ National unemployment 5% AA: 9.0% Latinos: 5.6% Whites 4.3% Asians: 4.0% National Income Poverty Rate- 14% AA=27.4% Latino= 26.6 White=9.9% Asian=12.1

New Orleans Data Profile NationalMedian Household Income in 2014- $53,657 AA= 35,398 Latino=42,491 Asian=74,297 White=60,256 From Henry J. Kaiser Family Foundation as of 2014: http://kff.org/other/state-indicator/poverty-rate-by-raceethnicity/ National Poverty rate by race: 15% AA: 26% Hispanic: 24% White: 10%

New Orleans Data Profile Cost Burdened National 2013= 34% AA=26% Latino=23 Asian=20% White=14% Homeownership National 2016- 63.5% Black=41% White=72.1% Latino= 45.3 Other

New Orleans Data Profile New Orleans Many turn to self-employment to work toward financial security. Unfortunately for the most insecure communities we see the least return in small business ownership. Most small businesses have no paid employees, and there is a great racial economic divide in regards to the average business value between businesses of color and white owned businesses. From CFED Business value by Race in 2012 dollars: http://scorecard.assetsandopportunity.org/latest/measure/business-value-by-race White: $641,742 AA: $73,226 Asian: $413,593 Hispanic: $155,806  

https://soundcloud.com /rwdpodcast Thank You! Find us online! Bridging the Racial Wealth Divide Racial Wealth Divide http://cfed.org/programs/racial_wealth_divide/ https://soundcloud.com /rwdpodcast https://www.facebook.com/racialwealthdivide/