Four Foundations Boost Dozens of Groups Serving Detroit’s Communities of Color

More than 24 community organizations in Detroit led by or serving Black, Indigenous and people of color (BIPOC) will share $11 million in operating support over the next two years thanks to grants announced last month by Enterprise Community Partners, a national nonprofit focused on the affordable housing crisis.

Detroit is no stranger to big-money efforts to revitalize the city, but the latest series of grants is notably fixed on supporting Detroiters in need with an explicit focus on organizations serving communities of color. The round of grants is an extension of the work these funders have been supporting in parts of Michigan for years, but it’s also the latest example of philanthropy’s response to the rising demands for racial justice over the past year.

The recently announced $11 million represents a joint funding effort by the Ford, Kresge, Ralph C. Wilson, Jr. and W.K. Kellogg foundations to Enterprise’s Community Development Organization (CDO) Fund, which was originally launched in 2020 with an initial $2.7 million commitment from Kresge and Ford. The seeds for the fund were originally planted in 2017 with a $3 million, three-year commitment by Kresge to 21 community development organizations.

For Kellogg, this funding fits within its mission to serve children, working families and communities, with one geographic focus being the Michigan cities of Battle Creek, Detroit, and Grand Rapids. Michigan-based Kresge centers equity and opportunity within cities, with one program devoted entirely to Detroit. The Ralph C. Wilson Jr., Foundation funds economic development and opportunity focusing on Western New York and Southeast Michigan.

Recipients include BLVD Harambee, a church program dedicated to fostering life skills in young people; the Detroit Hispanic Development Corporation; and Sinai-Grace Hospital’s Grace Guild Community Development Corporation, which is working to revitalize area neighborhoods. Grants from the CDO Fund will support equitable recovery from COVID-19, part of Enterprise’s larger Equitable Path Forward initiative.

“We are thrilled to continue our support for the CDO Fund and the nonprofits that are making a meaningful difference in the lives of so many Detroiters,” said Kevin Ryan, program officer for the Ford Foundation, in a press release announcing the grant. “It’s critical that we continue to invest in local Black leaders and organizers of color who know firsthand what the best path forward is for the neighborhoods where they live and work.”

For Ford, Detroit has been a priority since it was founded in Michigan in 1936, with particular relevance to its mission of fighting inequality. In its web page dedicated to the foundation’s commitment to the city, Ford points out that underinvestment in Detroit’s low-income areas has reduced Black homeownership, contributed to a steady decline in the area’s median income, and left 30% of the city’s housing stock vacant. Meanwhile, Ford says, the 7.2-square-mile downtown area has attracted $5 billion in investments, leaving the rest of the city’s roughly 139 square miles—and the majority of its residents—behind.

Detroit has been a prime example of the ways philanthropy and investment can be a mixed blessing for a city in need. For example, the post-bankruptcy “Grand Bargain” in 2014 saved the Detroit Institute of Arts and closed a massive budget gap for the city, but even though multiple funders contributed to the city’s pension funds, retirees still saw cuts to their pensions. The Ford, Kresge and Kellogg foundations were among the funders of that bargain.

And then there’s Dan Gilbert. As Inside Philanthropy’s Michael Kavate and Tate Williams have reported, Gilbert’s investments seem to be focused as much, if not more, on his own financial interests in the downtown area as they are on the good of Detroit’s residents. Two months ago, however, Gilbert did turn his eye toward Detroit’s neighborhoods with a pledge of $500 million over 10 years, beginning with an initial $15 million to wipe out overdue property taxes.

In Detroit and nationwide, cause for qualified optimism

The foundations behind this latest announcement were in many ways ahead of the trend, but they are far from alone in their interest in funding BIPOC communities.

According to a report issued late last year by the Center for Effective Philanthropy, almost 90% of 235 surveyed foundation leaders said they were making new efforts toward alleviating systemic racism and increasing their giving to BIPOC-led groups.

More than 80% of respondents, for example, said they were incorporating racial equity into their grantmaking or programmatic strategies, and roughly two-thirds reported they had spent time learning and reflecting about racial equity within their organizations.

IP has been watching this trend closely, with an eye toward how deep and lasting the shift will be. As we recently reported, BIPOC leaders in philanthropy are heartened by the changes, but pointed out a lot of room for systemic change and the need to remain diligent.

For example, the CEP report found that only a third of the funders reported changing their giving practices to support advocacy work. Less than half had made any changes in their internal practices, and only 12% proactively stated a need to make their boards more racially diverse.

This latest $11 million in grants to BIPOC-led organizations represent another example that, yes, the spotlight on racial inequities is still shining nearly a year after the murder of George Floyd. It’s still too soon to tell, however, either how long philanthropy’s racial reckoning moment will last or how many deep, systemic changes those in power in this sector are ready to make.

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