Minnesota Council on Foundations Blog – Philanthropy Potluck

From a Council on Foundations Legislative Alert:

On May 12, the California Senate Business, Professions and Economic Development Committee (BP&ED) held a hearing on A.B.624, a bill that would require foundations with assets greater than $250 million to collect ethnic and gender data related to their governance and grantmaking practices. With very good representation from foundations in the room, opponents of A.B.624 testified that:

1. the legislation is based on faulty report/data
2. the bill may be unconstitutional
3. the bill might discourage individual donors (with the Philanthropy Roundtable testifying that the bill has the potential to drive $23 billion in charitable giving out of CA)
4. the bill doesn’t address core issues of diversity and transparency of such
5. slippery slope (where does it end?)
6. philanthropy is not the place to address the shortcomings of government

Those testifying in favor of A.B.624 argued that:

1. taxpayers need to know how their money is spent
2. small organizations do not benefit from foundation funding
3. grantees are already required to report this information to government/foundations
4. minorities and minority-run organizations need the money

The chairman of the committee did not ask for a vote on the bill and instead asked the foundations in the room to work with the authors of the legislation to determine amenable legislation to both sides, with the hope that the BP&ED Committee can vote on this new legislation by the middle of June.

More information about A.B.624:

• A.B.624
  Official California legislative information
• California Assembly Votes to Make Foundations Disclose Key Information on Diversity
  Chronicle of Philanthropy
• COF Opposes A.B.624
  (National) Council on Foundations

Editorials/opinions about A.B.624:

• The ‘Diversity’ Threat to California Charity
  Wall Street Journal
• Diversity in Philanthropy Achieved Through Leadership, Not Mandates
  San Jose Mercury News
• Shaking the Foundations
  Washington Times
• Asking Too Much
  Los Angeles Times
• The Color of Charity
  Wall Street Journal