A foundation, led by veteran and best-selling author Wes Moore, is launching a new fund to fund nonprofits that are run exclusively by the colored.
The new Robin Hood initiative, titled "Power Fund", aims to support these groups after the coronavirus pandemic and nationwide protests after George Floyd was killed by the police last month.
Moore, the foundation's CEO, told CNBC in an interview that Robin Hood is already providing $ 10 million in seed capital for the fund and is receiving support from at least two financial institutions, including Goldman Sachs and J.P. Morgan. Moore said the data he says only 10% of philanthropic contributions go to groups led by colored people will force him and the foundation he leads to create the new fund.
The move to set up this fund goes hand in hand with the hope that companies and philanthropic leaders will focus not only on supporting the more traditional organizations that are already in their portfolios, but also on smaller groups that fight poverty and racial injustice.
"We will have a real focus on identifying organizations that may be in our portfolio. They just weren't on our radar screen," Moore said Tuesday. "How do we broaden our horizons? How do we broaden our thinking when it comes to what makes an organization ready to be part of our portfolio?"
The Robin Hood Foundation funds over 200 poverty reduction programs in New York City.
"When they work, we find ways to scale their success. If they stumble, we try to identify the problem and fix it," the website says.
Since its inception in the 1980s, Robin Hood has always followed a business-like approach to deciding who to help.
This seems to be the case with the "Power Fund", where their business partners, investors and board members are already making great efforts.
"We have both private board members and private investors who have already committed to the fund," said Moore. "We are currently in talks with at least a dozen other business partners who we hope will be blocked within a few days," he said.
Your board is made up of top executives, including many on Wall Street. Its chairman is long-time investor John Griffin, whose deputy chairman is Dina Powell McCormick from Goldman Sachs. Goldman's CEO, David Solomon, is also on the board.
McCormick told CNBC in a statement that Robin Hood's new fund will help leaders who want to make a difference in underserved communities.
"We are very proud to launch the Power Fund, which will invest in a generation of color guides that are transforming underserved communities," said McCormick. "The data is clear that organizations led by different executives do not have sufficient resources and yet understand better and more effectively the needs of the communities they serve."
Goldman recently launched its own fund, "Fund for Racial Equity," which, according to its website, is designed to "support the important work of leading organizations to combat racial injustice, structural inequality and economic inequality". The bank said it originally started with $ 10 million.
All of these new ventures by business leaders and foundations like Robin Hood are, according to Moore, a response to the inequalities that have occurred during the coronavirus pandemic and since Floyd's death.
Robin Hood founded a Covid-19 aid fund when New York struggled to overcome the virus, and the group's founder believes that both the pandemic and the response to Floyd's death represent major racial inequalities.
"The truth is that if you actually pull them back, they'll reveal the same thing," said Moore, speaking about both the corona virus and the protests triggered by Floyd's death.
"While Covid-19 affected everyone, it didn't affect everyone equally. If you look at people with color, people with color have been twice as likely to be infected with Covid and have died twice as often," said Moore while discussing the Pandemic. "Police reform is needed in all congregations," added, "when you saw George Floyd murdered on camera, you have only got another example of how every congregation needs police reform like you do black and brown communities to look at and how they are monitored is not the same. "
"It is one of those things we hope that the & # 39; Power Fund & # 39; can actually hope to tackle," Moore concluded.