Money4YOU exposes alarming diversity gap in charitable funding: Launching #OperationTransparency report
Money4YOU unveils the results of its extensive research spanning January 2022 to November 2023, shedding light on profound disparities in charitable funding and governance. The #OperationTransparency report, launched at the House of Lords on 8th November 2023, highlights the urgent need for a comprehensive overhaul of diversity data metrics within charitable organisations.
As the Covid-19 pandemic disproportionately impacted communities of colour and community organisations in 2020, Money4YOU observed the unequal effects on non-profits serving these communities and embarked on a mission to understand the extent of support available to non-profits serving these communities.
The research, revealed a glaring absence of crucial diversity data within charitable organisations, hindering a comprehensive understanding of support available to non-profits led by people of colour. This data gap restrains the understanding of the scope of support available to non-profits led by people of colour. In response, Money4YOU initiated #OperationTransparency, urging the Charity Commission to incorporate diversity and equality data metrics into the Register of Charities.
”"Reporting diversity data isn't just a checkbox; it's a strategic move toward building a stronger, more representative sector. Just as we track metrics in other areas, diversity metrics should be no exception. When we measure and report, we signal a collective commitment to creating an inclusive space for all."AmickyCarol Akiwumi, MBEFounder and CEO Money4YOU
The comprehensive report focuses on critical areas of discrimination within the sector, particularly cantered on racism. Key areas examined the Charity Commission’s workforce, senior leadership, funding distribution, and the inclusion of lived experience in major charities. Shockingly, the research highlighted that a significant portion of grants—£29.8m out of £112m—was allocated to organisations with all-white boards within a year, revealing a stark disparity in funding allocation. Boards predominantly composed of white male trustees received an average funding of £1.23m, a staggering difference compared to £406,000 received by boards predominantly composed of individuals of colour.
Money4YOU’s two-year investigation emphasises the urgent need for diversity data within the Charity Commission’s Register of Charities. The full campaign report can be accessed here.
”“At Money4YOU, we envision a future where every community receives equitable opportunities. It's not just about numbers; it's about dismantling systemic barriers to ensure every community thrives.” added Akiwumi.
Money4YOU remains steadfast in its mission to address economic inequality through financial education, entrepreneurship training, and capacity-building tools for sustained funding. With four trustees reflecting the lived experiences of the communities they serve; the foundation stands unwavering in its dedication to driving positive societal change.
This report serves as a pivotal step towards transparency and accountability, but there is much work yet to be done. Money4YOU urges the sector and governing bodies to take active measures in closing the diversity data gap to ensure equitable support for all charitable organisations.