Robin Hood CEO Wes Moore told the business news channel that the Power Fund will work to catalyze a shift among business and philanthropic leaders, encouraging them to support smaller nonprofits working to address poverty and racial injustice and not just the mainstream organizations already in their portfolios. Data show that only 10 percent of philanthropic dollars currently go to organizations led by people of color. In the wake of the COVID-19 pandemic — which has disproportionately impacted people of color and the poor — and the nationwide protests following the killing of George Floyd, the new fund aims to support more such nonprofits.
According to Moore, Robin Hood already has committed $10 million in seed capital for the fund, which has attracted support from at least two financial institutions, Goldman Sachs and J.P. Morgan. The fund's board members include Blue Ridge Capital founder John Griffin (chair), former Goldman Sachs Foundation president Dina Powell McCormick (vice chair), and Goldman Sachs CEO David Solomon.
Goldman recently created a Fund for Racial Equity with an initial commitment of $10 million to "support the vital work of leading organizations addressing racial injustice, structural inequity and economic disparity."
"We are going to put a real focus [on identifying] organizations that could be in our portfolio, they just haven't been on our radar screen," said Moore. "How do we expand our horizon? How do we expand our thinking when it comes to what makes an organization ready to be part of our portfolio?"
In a statement shared with CNBC, Powell McCormick said that the new fund will assist leaders who are looking to make an impact in underserved communities. "We are very proud to launch the Power Fund, which will invest in a generation of leaders of color who affect change in underserved communities. The data is clear that organizations led by diverse leaders are underresourced and yet they more deeply and effectively understand the needs of the communities they serve."
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