Why Black Leaders Want a $200 Million Permanent Endowment
By Darius Spearman (africanelements)
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In a landmark briefing held on February 24, 2026, leaders from the Black Freedom Fund issued a major challenge to the world of giving. They are calling for a permanent $200 million endowment to support Black-serving organizations in California. This move aims to end the cycle of “crisis-response” philanthropy. For too long, funding has only appeared when Black communities are in the headlines for tragic reasons. This new plan seeks to build a lasting foundation for power and stability (binnews.com).
The request is far more than a simple budget increase. It represents a strategic shift toward institutional autonomy. Leaders argue that temporary support often “parachutes in” during moments of racial trauma and vanishes once the news cameras leave. By establishing an endowment, the Black Freedom Fund hopes to ensure that Black-led progress does not depend on the emotional whims of outside donors. This effort connects to a long history of self-determination within the African diaspora (californialocal.com).
The End of “Parachute” Philanthropy
For decades, many organizations have relied on short-term grants that come with many strings attached. These grants often focus on specific projects rather than the overall health of the organization. When a crisis occurs, such as the social unrest of 2020 or recent wildfires, money flows quickly. However, that money often dries up as soon as the immediate emergency passes. President and CEO Marc Philpart describes this as a “parachute” approach that fails to address root causes (binnews.com).
The call for a $200 million endowment is designed to change this dynamic forever. An endowment is a large sum of money that is invested so it can grow. Instead of spending the whole amount, the organization only spends the interest earned each year. This creates a steady stream of income that never runs out. For Black communities, this means having the resources to plan for the next twenty years instead of just the next twenty days (apnews.com).
The Revenue Gap: Black-led vs. White-led Nonprofits
Black-led organizations average 24% less revenue than their white-led peers. (blackenterprise.com)
The Legacy of Biddy Mason and Mutual Aid
The struggle for Black institutional power is not new. In fact, it has deep roots in California history. During the late 1800s, Bridget “Biddy” Mason showed what was possible through self-help. After gaining her freedom in a Los Angeles courtroom, she worked as a nurse and midwife. She saved her money and invested in real estate, eventually becoming one of the wealthiest women in the city. Her wealth was used to serve the community, not just for personal gain (lapl.org).
In 1872, Biddy Mason founded the First African Methodist Episcopal (FAME) Church. This institution became more than a place of worship; it was a center for healthcare, food, and social services. Mason’s work laid the groundwork for what we now call a social safety net. Her actions proved that when Black people control their own resources, they can provide for their own needs even when the state fails to do so (aaregistry.org). This history shows that the notion of freedom is tied to the ability to build and sustain institutions.
Allensworth and the Dream of Self-Reliance
In 1908, Colonel Allen Allensworth took the idea of independence even further. He founded the town of Allensworth in the San Joaquin Valley. It was the only California town to be founded, financed, and governed by African Americans. Allensworth believed that Black people should rely on their own efforts rather than waiting for white philanthropy. He envisioned a “citadel of Black power” that would be safe from the racial violence of the era (aaregistry.org).
The town thrived for several years with its own school district, post office, and voting precinct. However, it eventually faced challenges like water shortages and the rerouting of the railroad. Despite these setbacks, the spirit of Allensworth remains a powerful example of Black self-reliance. The current push for an endowment follows this same path. It recognizes that true power comes from owning the land, the banks, and the foundations that fund the work (binnews.com).
Revolutionary Survival Programs in Oakland
The history of community-led support continued in the 1960s with the Black Panther Party in Oakland. While they are often remembered for their political activism, their “Survival Programs” were a vital form of philanthropy. The Free Breakfast for Children Program fed thousands of students every morning before school. They also established community health clinics and research centers for sickle cell anemia (binnews.com).
These programs were funded by local businesses and grassroots donations. They were designed to fill the gaps left by a government that neglected Black neighborhoods. The Panthers showed that social services could be a revolutionary act. By taking care of the basic needs of the people, they built deep trust and political power. Today’s leaders at the Black Freedom Fund carry this legacy forward by demanding the resources to make such “survival” work permanent (californialocal.com).
The Statistical Reality of the Funding Gap
Numbers tell a clear story of why this endowment is necessary. Research from groups like Echoing Green shows a massive “philanthropic glass ceiling.” Black-led organizations often have much smaller budgets than white-led ones. Even more concerning is the gap in unrestricted assets. These are the funds that an organization can use for anything, like paying rent or hiring talented staff. Unrestricted assets for Black-led groups are 76% smaller than those for white-led groups (blackenterprise.com).
This lack of flexible funding keeps organizations in a “starvation cycle.” They can pay for specific programs but cannot afford to grow or innovate. Often, these groups are doing the hardest work with the fewest resources. In major cities, only about 1% of community foundation grants are designated specifically for Black communities. This is true even in places where Black residents make up a large part of the population. The BFF endowment is a direct answer to this systemic underinvestment (blackenterprise.com).
The 2020 Pivot and the Birth of the Fund
The modern California Black Freedom Fund was born out of the global racial reckoning in 2020. After the murder of George Floyd, many corporations and individuals made large promises to support racial justice. However, history suggested that this interest would not last. Philanthropic leaders in California wanted to make sure these one-time donations became long-term investments. They launched the fund as a five-year, $100 million initiative to build movement power (apnews.com).
Since its launch, the fund has distributed over $48 million to more than 200 organizations. It has focused on groups that are often overlooked by traditional donors. For example, 65% of its grants have gone to organizations led by Black women. By prioritizing these leaders, the fund is actively working to repair the kinship and unity that have always been the strength of the community (binnews.com).
Becoming an Independent Force for Justice
In July 2025, the California Black Freedom Fund reached a major milestone. It officially spun off from the Silicon Valley Community Foundation to become its own independent entity. This was a critical step in achieving institutional autonomy. As an independent foundation, it now has its own board of directors made up of Black leaders. This ensures that the people closest to the problems are the ones making the decisions about the solutions (californialocal.com).
This independence allows the fund to be more agile and responsive. When the Eaton and Altadena fires occurred recently, the fund was able to move resources quickly to the affected communities. They did not have to wait for a larger foundation to approve the spending. This level of control is exactly what early pioneers like Allen Allensworth dreamed of. It moves the community away from economic bondage and toward true self-governance (binnews.com).
$10 Million in Annual Grants Forever
The principal stays invested, the interest funds the movement. (binnews.com)
Navigating Political Storms and Legal Challenges
The push for an endowment comes at a difficult time. Currently, President Donald Trump is in office, and there is a growing movement against programs that focus on race. This “anti-DEI” (Diversity, Equity, and Inclusion) backlash has led to legal challenges across the country. Groups like the American Alliance for Equal Rights have sued foundations, arguing that race-conscious grants are discriminatory. One famous case involves the Fearless Fund, which was sued for providing grants to Black women entrepreneurs (newsone.com).
These legal attacks create a “chilling effect” where some donors become afraid to support Black organizations. Board member Brenda Solórzano noted that this volatility makes a permanent endowment even more important. A self-sustaining fund acts as a shield against political shifts. It ensures that the work of justice can continue regardless of who is in the White House or what the courts decide. By building its own wealth, the Black Freedom Fund is creating a permanent foothold for racial equity (blackenterprise.com).
Building a Durable Home for the Future
The ultimate goal of the $200 million campaign is to create a “durable home” for Black power in California. This vision is grounded in the philosophy of Ubuntu, which teaches that our humanity is all connected. In a philanthropic sense, this means that the well-being of the entire state depends on the well-being of its Black residents. When Black institutions are strong, they provide stability and leadership for everyone (binnews.com).
An endowment of this size would generate roughly $10 million in annual grants from investment returns alone. This creates a foundation that will exist for generations. It moves the conversation from seeking sympathy to building sustainability. The leaders of the Black Freedom Fund are not just asking for a hand-out. They are demanding the resources to continue a centuries-long tradition of self-determination. They are making sure that the history behind the headlines is a story of permanent power (californialocal.com).
About the Author
Darius Spearman is a professor of Black Studies at San Diego City College, where he has been teaching for over 20 years. He is the founder of African Elements, a media platform dedicated to providing educational resources on the history and culture of the African diaspora. Through his work, Spearman aims to empower and educate by bringing historical context to contemporary issues affecting the Black community.
