Topic: Republican Party

  • What Lawmakers Need to Know About Foreign Donors to Nonprofits and Political Advocacy

    As lawmakers investigate the rare instances of foreign interference in U.S. elections through nonprofits, Philanthropy Roundtable encourages them to protect charitable giving by upholding the constitutional right to donor privacy. 

    On December 13, 2023, the U.S. House Committee on Ways and Means held an Oversight Subcommittee hearing on the “Growth of the Tax-Exempt Sector and the Impact on the American Political Landscape.” The subcommittee, led by Rep. Jason Smith (R-MO) and Rep. David Schweikert (R-AZ), aimed to explore concerns about donors using tax exempt organizations for political purposes, especially foreign donors, and policy reforms to address these concerns.   

    In response to a call for written comments, Philanthropy Roundtable submitted a Statement for the Record to the Ways and Means Oversight Subcommittee hearing. In our written statement, we emphasize that in a nation built on individual liberty and opportunity, the spirit of giving has woven itself into the fabric of our story. Philanthropy, fueled by the generosity of countless Americans, isn’t just about charity. It’s the engine of social progress, a cornerstone of our democracy and a vital counterbalance to an ever-expanding government. 

    Amid concerns about the growing nonprofit sector, it’s crucial to remember its vital role. A strong nonprofit sector isn’t a threat – it’s a testament to the strength of our civil society. These organizations aren’t simply filling in the gaps; they’re on the ground, nimble and deeply informed about the communities they serve. They provide education, health care, housing and food to those in need, strengthening the fabric of American society. 

    From Andrew Carnegie’s libraries to Susan B. Anthony’s fight for women’s suffrage, philanthropy has driven transformative change throughout history. It empowers individuals to take ownership of their communities, bridges societal gaps and fosters innovative solutions to the challenges we face. This dynamic network of nonprofits – from food banks to global humanitarian initiatives – employs millions, reflects the unique needs of diverse communities and often delivers more effective, cost-efficient solutions than traditional government programs.  

    Furthermore, in a time of increasing government size, a vibrant nonprofit sector serves as a crucial check and balance. It fosters civic engagement, empowers citizens to be active participants in shaping their communities and provides a platform for free speech and diverse viewpoints. This vibrant exchange of ideas and actions is the lifeblood of democracy, ensuring it remains responsive to the people it serves. 

    Of course, with any system, concerns about abuse exist. Philanthropy Roundtable recognizes these concerns and advocates for strong enforcement against any wrongdoing. However, it’s essential to remember that instances of abuse, while unfortunate, are statistically rare. Available data shows a vast majority of nonprofits operate with integrity and dedication, delivering on their vital missions. 

    Finally, amid calls for donor disclosure and empowering government agencies, we must ensure donor privacy is protected. Private giving allows individuals to support causes they believe in, free from fear or undue pressure. This freedom fosters diversity of thought, fuels innovation and ensures the wellspring of charitable giving remains unpolluted by external influence.  

    As the Ways and Means Oversight Subcommittee considers these comments, we urge them to remember the vital role of nonprofit organizations in upholding American values and strengthening our communities. While concerns about the sector deserve examination, we must approach any reforms with a clear understanding of the potential consequences. Forced donor disclosure or further empowering government agencies can stifle the philanthropic spirit, hindering its ability to drive social progress and protect individual liberty. Let us work together to ensure oversight strengthens, not stifles, the incredible contributions of the nonprofit sector, safeguarding their ability to be a powerful force for good in our nation. 

    Read our full Statement for the Record. 

  • A Conversation about History, Race and the Meaning of True Diversity with Ja’Ron Smith

    Editor’s Note: Philanthropy Roundtable’s True Diversity initiative offers an equality-based, holistic framework for embracing diversity. We support efforts that value every person as a unique individual and empower charitable organizations with the freedom and flexibility to advance their missions. Learn more at TrueDiversity.org. 

    Cleveland, Ohio native Ja’Ron Smith and Washington, D.C.-raised Chris Pilkerton are two men of different races and backgrounds united by their faith and purpose to help the underserved. They both rose to become policy advisors to President Trump, where they advanced solutions for economic mobility of Black, white and all Americans. In a new book titled “Underserved: Harnessing the Principles of Lincoln’s Vision for Reconstruction for Today’s Forgotten Communities,” they offer a prescription for rebuilding underserved communities by drawing upon President Abraham Lincoln’s vision for reconstructing the nation after the Civil War. 

    I spoke with Smith, a policy expert on regulatory affairs, economic mobility, social justice, finance, banking and housing and urban development about his personal experience, new book and how he views true diversity.  

    The interview below has been edited for length and clarity.    


    Q. Tell us about your background and how it shaped your approach to work and life. 

    Smith: I grew up in Cleveland, Ohio, in a lower middle-class community. My early years were similar to that of many people: parents struggling with drug addiction and alcoholism. My parents were both blue-collar workers and their parents were poor. They did what they needed to do to survive.  

    My dad sent me to a Catholic high school. That education gave me my first experience with religion and created an environment to help me. I wasn’t a good student until age 14 or 15. Despite their addiction, I was anchored with two parents that loved me and a grandparent that loved me, which made me a resilient person and gave me the courage to be curious. As I set out to be my best self, I had to do service projects to graduate and that’s where the passion developed for helping people. 

    My generation was the first generation to start going to college. 

    My background planted the seed of wanting to help change our community and empower people. From that experience you learn that people go into drugs and self-destructive behavior based off trauma or traumatic experiences. It can be hard to try to figure out how to become your best self and put food on the table.  

    I attended Howard University and during college interned in Washington, D.C. on Capitol Hill, which got me interested in politics and policy as a way to positively impact people. 


    Q. Coming out of your background and work at the highest levels of government, why did you decide to write this book? 

    Smith: I wrote this book along with my colleague, Chris Pilkerton, because working together in the White House, we realized there were so many challenges in underserved communities. Because of the pandemic, we weren’t able to finish some of the work we had begun on issues ranging from criminal justice reforms to workforce development. It became apparent that the work we were trying to accomplish was more important than ever. Some communities will be set back even further because of COVID. 

    My north star and mission has been figuring out solutions for underserved communities. When I came back to D.C. in 2008, I gave my life to God and He has positioned me through relationships to accomplish this mission. We talk about our faith journeys in this book, but this book provides a blueprint to complete our unfinished work.   


    Q. “Underserved” focuses on the post-reconstruction era in the United States. There was so much opportunity for Black folks: in politics by becoming legislators, starting businesses and creating economic centers, creating a new middle class and creating greater Black wealth. What didn’t happen following Reconstruction that led to issues we’re still dealing with today?  

    Smith: Abraham Lincoln grew up on a prairie, he grew up poor, was self-educated and he learned the importance of earning a living for yourself and being able to leverage that to empower oneself through economic empowerment.  

    Lincoln’s vision for Reconstruction highlights that economic empowerment … is a core part of America. America is a capitalist country; the whole notion of capitalism is based on the concept of mutuality and mutual benefit. It has lifted so many underserved communities around the world in ways that other systems haven’t. The challenge is that slavery raised the question of whether capitalism was exploitative. Capitalism doesn’t have to be.  

    Unfortunately, Andrew Johnson worked with the privileged class of the South (former plantation owners) and the creation of Black Codes created a dual system that Black Americans lived in for about 60 years until the Civil Rights Movement. Despite all of that, Black Americans in segregated communities were still able to foster economic empowerment and build robust communities. But the government and racist factions tore that apart. That has happened several times. In our book, we mention the Freedman’s Bureau, race riots and Black Wall Street. 

    Ultimately, you still did not have a breakthrough with those communities. Laws from the ‘30s created redlining and concentrated poverty and race. Then the presence of Great Society programs at the same time as the post-Integration movement led to Black flight. Upper class and middle-class Blacks left those communities. When affluent people–doctors and lawyers–left the community, those left behind were left with no real role models or high earners which led to concentrated impoverished communities. It’s similar in some white communities too. The reason we called the book “Underserved” is because we talk about poverty in white communities as well.  

    Lincoln saw the importance of investing in poor white communities as well as Black communities. His assassination cut short this work which could have helped in the Jim Crow South where poor whites were pitted against poor Blacks. A century later, the race and class warfare was something Dr. Martin Luther King, Jr. talked about during the Civil Rights era. 


    Q: Can you talk about the role of the church, particularly of the Black church, then and also today in driving outcomes that go toward economic opportunities?  

    Smith: First of all, the movement to free the slaves was undergirded by the Great Awakening, which created the abolitionist movement. The emergence of the Republican Party was anchored in religion. When we went into Reconstruction, many of the HBCUs (Historically Black Colleges and Universities) that were launched were financed by religious organizations and invested in training preachers. The early leaders who went to Congress, like Hiram Revels, were ministers and the church became a safe place for individuals in the Black community to mobilize, organize and educate themselves.  

    New Black churches emerged out of that. Different denominations undergirded the Civil Rights Movement. The church has historically for the Black community been an anchor for change in our communities. However, over the last 40 years—and not just in the Black community—institutions overall including the church have lost the trust of the community. 

    Throughout America, people are less religious. Some people on the right blame taking prayer out of public schools, but it goes back to the methodology of trust. Some churches–not all of them–haven’t been the anchor that they used to be because trust is not there in the community. You might have a number of different churches in any underserved community. They are not all places that people go to or frequent. After being in seminary, I learned that in many cases churches have become more of a social club rather than an anchoring or change agent for society.  

    We need that anchoring because the church and faith community’s help in figuring out who you are as a person is extremely important in behavioral health. So many communities have dealt with the trauma of the pandemic and historic trauma. Being able to navigate the nuances of life is hard when you come from broken families. That’s a mission I have been on. We need the church and civil society more than ever.   

    Aside from the Black households, in which you see 70% are single-parent households, 50% of white households are single parent or divorced households.  


    Q: How can True Diversity or other equality-based, holistic frameworks for embracing diversity contribute to economic mobility?  

    Smith: Different perspectives help you to be competitive. Many other countries don’t necessarily have the model of diversity that America has and if we’re in a global competition of ideas, we are far ahead of people by celebrating our shared diversity. Celebrating that we are a melting pot is in the American DNA. We became a place where people came from all different walks of life to be able to participate in the American experience, which is based on individuality, ideas, freedom and liberty. That undergirds everything.  

    Companies and organizations that decide not to be intentional about thought diversity are losing the opportunity to benefit from that market share. But it has to be genuine, it has to be intentional. It cannot be virtue signaling. What the workplace is  trying to do is to harness our best asset which is the diversity of opinions and backgrounds. No one has the same experience. We celebrate that uniqueness that you can bring to the table and that uniqueness drives different ideas that an organization would never have thought about.  

    I’m not sure that designating a role for Diversity Equity and Inclusion (DEI) is right. If you have a C-suite, a better approach is having more COOs from different perspectives, more CFOs and CEOs. If you lean into being intentional about bringing in the best talent from diverse perspectives, you will get individuals in leadership roles who will commit to bringing other individuals with diverse perspectives along. For me working at the White House (and every organization I’ve been in), I’ve been able to identify individuals with different backgrounds that other leaders may have overlooked and they’ve ended up adding value.  

    It hasn’t been based on race but comparative advantage. Everyone brings different skills to a situation and it’s figuring out what comparative advantages individuals have that can make us more competitive. You want businesses or organizations to be intentional about what their talent needs are and to lean into those, not just check demographic boxes.  

    In the current landscape, DEI has become a talking point instead of looking at the most unique capabilities people bring to the table and what we can learn from them. We put blanket approaches in place that are not effective, when the unique qualities that people have because of their backgrounds is what we should focus on. 

    Click here to learn more about True Diversity.    

  • Denisha Allen (Merriweather) on Why Black Minds Matter


    Philanthropy Roundtable recently sat down with Denisha Allen (Merriweather), founder of Black Minds Matter, a “national movement to celebrate Black minds, support excellence and promote the development of high-quality school options for Black students.” Allen, an American Federation for Children senior fellow, is a champion for school choice and a Florida tax-credit scholarship recipient. Through Black Minds Matter, she hopes to help provide access to an excellent education for every Black student. 

    The interview below has been edited for length and clarity.  

    Q: You founded Black Minds Matter, a project of the American Federation for Children Growth Fund (AFC), in 2020, a time when many Americans were seeking to address social injustices in our country. What led you to create this organization and what role does it serve? 

    Allen: I came to AFC after working at the U.S. Department of Education with Secretary DeVos. I worked with the Trump administration for two years, and then came to AFC as a director of Family Engagement. Then, in 2020, I wrote an op-ed in Real Clear Education about my frustrations in the aftermath of George Floyd’s murder. Our country was in civil unrest, maybe even the whole world was in civil unrest, and people were looking for ways to challenge racism. I wanted to bring attention to areas that would help Black America attain empowerment and excellence in all aspects of life. And, to me, that meant focusing on education. When I looked at the data, I saw that Black students are not reading on grade level or graduating from high school at the same rates as their white and Asian counterparts. I wanted to focus on changing that.  

    Unfortunately, at that moment in the national conversation, there was not a widespread initiative from the Black Lives Matter movement to talk about education and education reform. So, I coined the term Black Minds Matter to highlight that we need to focus on education freedom. We received a tremendous amount of support for what we stood for. And I’m proud that one of our first initiatives was to bring together a network of Black school founders. This was very personal for me because I went to a Black-founded school, and I benefited directly from the school choice movement.   

    Our mission is to nourish Black students with a rich education of their parents’ choice by any means necessary. Our goal is to expand our reach by engaging new audiences. This includes both Republican and Democratic elected officials, HBCU’s and our growing Black Founders Network. We are also committed to expanding our visibility through high quality content that can also be used to generate revenue for our work.  

    Lastly, we want to bring awareness about education freedom to the communities where Black students are most likely to be relegated to poor performing public schools. We have over 430 Black-founded schools in our online directory at www.BlackMindsMatter.net, and 150 Black school founders in our network. We were thrilled to have many of them in attendance at our second annual Black Minds Matter Summit in Washington, D.C., earlier this year.  

    Q: Can you tell us more about your personal connection to the work you are doing? 

    Allen: I went to a private school in Jacksonville, Florida, on scholarship from sixth grade onward. I failed the third grade twice because I couldn’t read. As you can imagine, I had very low self-esteem, and I was lashing out by starting physical fights. My life trajectory was going in the same direction as many of the people in my family who had all dropped out of school. When I switched schools, I went from getting F’s and D’s to getting straight A’s.  When I founded Black Minds Matter, I saw the opportunity to highlight Black-owned schools as a part of that narrative, since school choice had such a transformative impact on my own life. 

    Q: Your website says that nourishing Black minds with a rich education is the first step to breaking generational poverty and societal inequities. What do you mean by societal inequities, and how does education combat this problem? 

    Allen: In America, there’s a class issue and there are a race issues, and sometimes those issues get intermingled and intertwined. But, at the root of both of those conversations is our education system. And the data shows that Black and brown students are performing the worst academically in this country. Just to give you an example, the NWEA just came out with a new study that follows in the same vein as recent NAEP [The Nation’s Report Card] scores. They said students on the whole will need three to four months of additional schooling in order to catch up from recent learning loss.  

    Shockingly, they found Black students will need two additional months to catch up. So, you’re telling me that Black students will need five to six months of additional schooling to make up for learning loss. When the system is pumping out hundreds of thousands of Black students who can’t read or do math into society, they end up in the criminal justice system. We call it the school-to-prison-pipeline. That is a societal inequity. That’s a civil rights issue. Black kids are not able to read. We need to change that. 

    When we look at education in America, we need to ensure that no kid is relegated to poor performing or failing schools because of where they live. Students in poorer neighborhoods are not receiving the same education as students who are going to schools where almost 90% of parents own their homes. We can solve this socio-economic/racial problem if we can create a market where competition is going to create incentives that perform better for students. Education freedom allows parents to choose the best school for their child regardless of school type. I sit on the board for Step Up For Students in Florida – the largest school choice program in the country. In Florida, we’ve seen academic outcomes for students in traditional public schools increase with every expansion of the state’s scholarship program. That’s because everyone is competing for students.  

    Q: Our 2021 Simon-DeVos Prize Winner Bill Oberndorf, chairman of the board of the American Federation for Children, has called access to education the civil rights issue of our time. Do you agree, and if so, why is that the case? 

    Allen: I absolutely do. It is the civil rights issue of our time. One of the goals of Black Minds Matter is to help the public see that school choice and education freedom are a part of the longer struggle for freedom in the United States and have deep historical roots. The conversation has been led by policy folks for so long, which is important. But I really want to make it more approachable and accessible to everyone. When we talk about the history of freedom in America, it is inextricably tied to access to education, from slavery through the Antebellum period all the way up to today. The struggle has always been access to education.  

    One of the ways we are working to showcase the connection between freedom and education is by conducting exhibits that illustrate the extent to which slaves wanted to read. One part of our exhibit showcases findings from archaeologists who found “pit schools” or deep holes in the ground where they also found tablets and pencils for writing. The slaves understood that their freedom was rooted in the ability to read and write, and they risked their lives to try to attain those skills. I always like to say there is freedom of the body and also of the mind, and that has always been the goal of African Americans in this country. They have never been divorced from one another. 

    Q: The recent Supreme Court decision ending affirmative action in higher education could impact students throughout the country. How do you feel about this decision and why? 
     
    Allen: I think it’s going to be very obvious that we need better options for Black students, and this decision makes that clearer. Black kids are not reading on grade level and removing affirmative action in higher education means Black kids will have to perform even better academically to be accepted into colleges and universities.   

    Q: As you look ahead, what are you most excited about for Black Minds Matter? 

    Allen: I’m always very excited about the Black School Founders network. They are amazing, so to be able to support them and champion the work they do for students is very rewarding. Many of them have models that are worthy of replication. We are going to focus on capacity building and finding ways to support them. I’m also very excited to get more involved in states and districts with the worst academic and life outcomes for Black and brown students, and to advocate for better outcomes in the lowest performing districts in the country. For example, I get excited when I think about a city like Baltimore, where reading and math levels are abysmal. The creation of education savings accounts in that city will help students access better choices. Through projects like this, we are going to close the achievement gap.   

    For more information about this organization or others providing Pathways to Opportunity, reach out to Philanthropy Roundtable Program Director Erica Haines.