Hispanic Philanthropy

By Kari Pardoe

Graduate Student, Grand Valley State University

Definition

The term Philanthropy is defined as the “love to mankind; benevolence toward the whole human family; universal good will; desire and readiness to do good to all men” (Websters Dictionary 1913).  Another way to explain philanthropy is the giving of time, talent or treasure.

The word “Hispanic is a term created by the U.S. Federal government in the early 1970s in an attempt to provide a common denominator to a large, but diverse, population with connection to the Spanish language or culture from a Spanish-speaking country”  (Ohio State University, 1).

The word Latino is defined as “a person of Latin American heritage, or of the Latin American culture” (Webster’s Dictionary).

In looking at definitions of the words Hispanic and Latino, they are many times used interchangeably.  Various regions of the United States have adopted their preferred term.

Historic Roots

The Hispanic community has had a long-standing tradition of giving, which is generally done through organizations or causes that are close to the hearts of the individuals.  Informal giving has been a strong value of the Latin American community for more than 500 years; however, Latinos are less accustomed to organized giving through nonprofits and philanthropic organizations (Ramos 2002). 

Many people in the Hispanic community still have strong ties to the communities were they were originally born, and/or where they still have family.  It is very common to see the money that could potentially go to non-profit organizations or foundations sent back home to aid the rest of the family. 

Importance

“Latino focused organizations received an average of 1.48 percent of large foundation grants between 1994 and 2001.  Funding to Latino communities rose from $140 million
in 2000 to $169 million in 2001, which was 2.1 percent of all large grants” (Pittz and Sen 2004, 5).  Even though this seems that the Latino community is receiving a large sum of money, the growing Hispanic community should be considered.  According to the 2000 Census, there are now over 35 million Latinos in the United States.  It is predicted that by the year 2050, there will be over 97 million people who are Hispanic, or one out of every four Americans. 

By dividing the population of Latinos by the funding that they received in 2001, it averages out to $4.83 per person.  Unfortunately, because that amount of money is so low per person, related organizations and causes are having a hard time trying to survive and make an impact on this community.  As the population continues to rise in numbers, it is vital that not only the Latino community, but especially foundations, increase their giving in order to support this culture.
  

Ties to the Philanthropic Sector

Strategically planned Hispanic giving helps to strengthen the Hispanic community’s voice and influence as members of society.  Focusing their philanthropy on specific aspects of the Latino community helps to bring attention to their community and their needs.

For example, Latinos are discovering that leadership within the philanthropy community has helped women and other groups increase their influence in the social and political arenas.  Latinos are increasingly working with each other and nonprofits to strengthen their community and create new opportunities (Ramos 2002).

It was found that almost 63 percent of Hispanic households gave to charity in 1998, about 46 percent of Hispanics volunteered, which increased from 40 percent in 1995.  It was also found that Hispanic households give primarily to religious institutions and “informally” to individuals, such as family and friends, rather than to organized charities.

Unfortunately, because the foundation world has not embraced this culture as an integral piece of their organizations, there is a disconnect between the community and the philanthropic world.  One of the main reasons this has happened is that the philanthropic world is not taking the time to educate the Hispanic community about philanthropy and the benefits it could have on their community.  This causes the Hispanic population to be very cautious, as well as maintain a sense of distrust of philanthropic vehicles.

Currently, the Hispanic population looks to solve the immediate problems in their communities and society.  Long-range planning has not been a focus in the past, but many understand it to be necessary to move forward for increased impact.  Long-range planning or an establishment of endowments is something that will take a great deal of education by foundations to successfully engage the Hispanic community.

Key Related Ideas

African-American Philanthropy.  As a forerunner to Hispanic philanthropy efforts in the United States, many of the lessons-learned from African American philanthropic initiatives should be shared with people who are working to engage the Hispanic community.  Even though they are distinctly different cultures, there are common elements that impact how they approach the concept of giving and how they define what is important to them. When an understanding of family and community structures and the importance of heritage was developed, foundations were successful in partnering with the African-American community in supporting nonprofits organizations focused on the issues that concerned them most and made the greatest impact. SEE PAPER

Education of the Hispanic Community on Philanthropy:  When starting to work with the Hispanic community, foundations must focus their beginning efforts on educating the target community about philanthropy, what it means, and how it can benefit their culture. It is equally important for grantmakers to understand the distinctive cultural differences of the populations they are working with in an effort to build trusting relationships.

Endowment:  “An endowment fund is a permanent savings vehicle for not-for-profit institutions. Schools often maintain endowments, as do hospitals, churches, and other not-for-profit organizations. The growth of the portfolio is not subject to tax, and donors receive tax deductions for gifts made to endowments. “[ ] “Normally an endowment is governed by an Investment Policy statement — a document that states protocol, such as withdrawal procedure, investment allocation guidelines, and committee membership guidelines” (EAInvest, 1). These long-term funding concepts are often unfamiliar to grassroots nonprofit organizations, as well as their supporters in the Hispanic community.

History of the Hispanic Culture: If foundations do not have a deep understand of the Hispanic culture, it will be extremely difficult to engage Hispanics in philanthropy.  It is fundamental to understand the way the Hispanic community views history, education, art and culture as juxtaposed against the mainstream view of American culture and societal norms. Only after understanding their heritage and what is important to them will foundations be able to successfully begin to develop relationships.

Important People Related to the Topic

• Cesar Chavez (1927-1993):  Chavez was a Mexican American labor activist and leader of the United Farm Workers. During the 20th century, he was a leading voice for migrant farm workers (people who move from place to place in order to find work). His tireless leadership focused national attention on these laborers' terrible working conditions, which eventually led to improvements.
  
  
• Herman Gallegos:  Gallegos is one of the pioneers of the Latino philanthropic movement.  The legacy of his contributions to civil rights include the founding of the Mexican American Legal Defense and Education Fund (MALDEF) and the National Council of La Raza (NCLR).  A few years before his death, Dr. Ernesto Galarza donated all of his files to Stanford. Several renowned scholars including Gallegos, conduct research based on his materials in the special collections  archive at Stanford University's Green Library.
  
  
• Edward James Olmos (1947- ):  Olmos is a well know actor who has been involved with many different non-profit organizations through the years.  His involvement includes community service, serving on boards, speaking at events, etc.  A few of the organizations he has been involved with include Hole in the Wall Gang, Foundation for Advancement in Science and Education, and the Plaza de la Raza.

Related Nonprofit Organizations

• The Council of Foundations is a membership organization of more than 2,000 grantmaking foundations and giving programs worldwide. They provide leadership expertise, legal services and networking opportunities—among other services—to their members and to the general public.  They have been involved in conducting research around Hispanic giving and how it is impacting the philanthropic community (http://www.cof.org).
  
  
• The Forum of Regional Associations of Grantmakers is a national network of local leaders and organizations across the United States that support effective charitable giving. The Forum’s network focuses on the philanthropy of the city, state, and multi-state areas of the U.S. and encompasses 30 regional associations of grantmakers. These regional associations collectively represent and offer assistance to more than 4,000 grantmakers and others interested in philanthropy by providing tools and publications on a variety of topics related to grantmaking.  The Forum is involved on a national level in helping to begin National Initiatives around communities of color (http://www.givingforum.org).
  
  
• The Hispanic Federation (HF) was founded in 1990 to strengthen, support, and develop institutions that advance the quality of life for Latino New Yorkers. Thirteen years later, the HF advocates for increased comprehensive health and human services in the Hispanic community within the tri-state area (http://www.hispanicfederation.org).
  
  
• Hispanics in Philanthropy (HIP) is an association of more than 450 U.S. and Latin  American Grantmakers and nonprofit leaders committed to increasing  philanthropic support of Latino communities and to promoting greater  participation by Hispanics within organized philanthropy. HIP brings to the Collaborative a strong network of individuals with experience in collaboration and within Latino communities (http://www.hiponline.org).
  
  
• The W.K. Kellogg Foundation is a nonprofit organization whose mission is to apply knowledge to solve the problems of people. Its founder W.K. Kellogg, the cereal industry pioneer, established the Foundation in 1930. Since its beginning the Foundation has continuously focused on building the capacity of individuals, communities, and institutions to solve their own problems.  One of the W.K. Kellogg Foundation's major focus is getting people of color involved with the philanthropic sector.  In preparing for this initiative, they have conducted and funded major research in this area that would be very beneficial (http://www.wkkf.org).

Related Web Sites

The Hispanic Association on Corporate Responsibility Website, at http://www.hacr.org, focuses on Hispanic-related research in the areas of corporate governance, workforce, employment, corporate philanthropy, procurement, economics and national demographics.  The HACR Research Institute regularly identifies and reports on best corporate practices in the areas of Hispanic employment, philanthropy, procurement, and governance.  They also provide reports that measure the broad commitment of corporate America and provide tools to develop strong public/private partnerships.

The Pew Hispanic Center Web site, at http://www.pewhispanic.org/index.jsp, provides resources and news aimed at improving understanding of the diverse Hispanic population in the United States and to chronicle Latinos' growing impact on the nation.  Publications include, “The Wealth of Hispanic Households,” “Latino Labor Report, 2004: Wage Growth Lags Gains in Employment,”  “Changing Channels and Crisscrossing Culture: A Survey of Latinos on the News Media,” and much more. 

The U.S. Census Web site, at http://www.census.gov, provides statistics from the U.S. Census relating to the Hispanic community in such areas as population, poverty, housing, and business.

Bibliography and Internet Sources

EAInvest. Financial Planning / Charitable Giving. Accessed on 18 January 2005  http://www.eainvest.com/plan/articles/cp/endowment.jsp

Ohio State University.  Ohio State University Fact Sheet.  Accessed 20, September 2004.
 http://ohioline.osu.edu/hyg-fact/5000/5237.html.

Pittz, Will, and Rinku Sen.  Short Changed Foundation Giving and Communities of Color.  Applied Research Center, 2004.  http://www.arc.org/content/view/271/48/.

Ramos, Henry.  Latino Philanthropy: Abriendo Caminos.  AXA Foundation, 2002.

Webster’s Dictionary.  Latino.  Accessed on 3 October 2004.
  http://www.webster-dictionary.org/defintion/latino.

Webster’s Dictionary.  Philanthropy.  Accessed on 30 September 2004.
  http://www.webster-dictionary.org/definition/philanthropy.