DOES EC ADDRESS THE RACIAL WEALTH GAP?

Enterprise capital can make a big difference in addressing the racial wealth gap. The choices funders make about how to structure and invest financial equity have enormous implications for advancing or impeding racial equity more broadly. Numerous researchers, philanthropic experts, and racial justice leaders have documented the disparity in funding between organizations led by white people and those led by people of color. It should come as no surprise that the racial “net asset” gap in the nonprofit sector mirrors the racial wealth gap documented at the household level. Enterprise capital operates—deliberately—to bolster the “wealth” of nonprofits led by and serving low-income communities and communities of color.