💸 Black Philanthropy: A Brief History 💸

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🔍 In this Issue

• My Business Insider Interview

• A Brief History of Black Philanthropy

• A Look at the Free Africa Society

• Introducing Something New

New to Ed. Opal? Catch up on our latest issues here.

This Week’s Money News

👛 Wallet Watch

• 🟤 I was featured in Business Insider last week! Read my interview here. If you’re experiencing a paywall, try this.

• 🟤 Black Friday is THIS WEEK! Have you taken these steps to protect yourself from credit card and identity theft?

• 🟤 We’re here to help Black women feel more confident and peaceful about their money. We’re building a resource database to help support the women Ed. Opal can’t support directly. If you know of an amazing nonprofit or other resource, share it via this form, and we’ll review it and add it to our resource database.

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Fiscal Focus

💸 A Brief History of Black Philanthropy

November is giving season, and I’m going to be honest: I’ve always been bothered by how giving season is discussed in our country. There’s a huge emphasis on the philanthropic work of folks like Bill Gates or Gordon & Betty Moore, but Black people have been heavy in this philanthropy game since the foundations of this country. Don’t get me wrong - I’m happy with all authentic philanthropy that goes toward creating a better society, but we (read that as Black people, especially Black women) have been doing and are doing more than our fair share of those contributions. So, I will take this newsletter to celebrate us and our contributions. As always, I’m going to start with a bit of historical context.

Centuries of Collective Care

Black philanthropy predates the transatlantic slave trade. Historical records trace the culture of giving and community-based practices to West African cultural traditions that deeply link giving with ethical and spiritual duty. For many West African tribes and societies, giving was seen as a spiritual practice aligned with nature that allowed for the well-being of the whole. As the transatlantic slave trade ensued, these practices were protected and evolved to respond to efforts toward collective survival during the brutality of slavery.

Present Day Numbers

As of 2023, Black households contribute $11 billion annually to charitable organizations nationwide. 48% of Black households who give report incomes below $50,000 per year. Where does all that money go? Black folks give to various causes, including education, social organizations like fraternities and sororities, and civic organizations. The list is as diverse as we are.

My Philanthropic Philosophy 

When it comes to giving, my philosophy reflects my values and the changes I want to see in society. This year, my giving went to organizations like Atlanta’s Servant Leader Scholars, my local Democratic party, and my alma mater, Spelman College. These organizations and institutions focus on education, career support and advancement, and the political action and policies that best reflect my interests. When considering where to give in 2025, I’m looking forward to getting more involved financially and on a volunteer basis with organizations like Run for Something, which supports young political candidates from underrepresented groups by coaching them and preparing them to win their local elections. I’m also researching Black Giving Circles, like the SisterFund. I love the idea of giving circles, so I’m excited to research in my local area to see what exists and where I can lean in.

Your Philanthropic Philosophy 

So, where should you give? Let’s start with if you should give. If you’ve been with Ed. Opal for a while, you know we’re all about healthy boundaries. If giving compromises your ability to reach your financial goals, consider volunteering your time or supporting organizations in ways that are not financial. If you’re in a good place and have some extra money to spend, start with your values and the changes you want to see in the world. I want to see a more equitable world where our leaders represent us fully, and education, financial stability, and healthcare are accessible to all. My dollars, then, back organizations that focus on those things. Once you’re clear on where you want to focus, set your budget. How much can you afford to give? Whether your annual giving budget is $10, $100, or $10,000, having a budget ensures you’re intentional about where and what you’re donating while also remaining intentional about your goals outside of giving. From there, start local. Local organizations tend to be vested in seeing change in their communities because they operate in those communities, and their leadership lives there. Due to this proximity, you’re also more likely to build genuine relationships with local organizations and get to know the personnel better than you would for national organizations. If you live in a big city, you can usually do a quick Google search to find local 501(c)(3) organizations in your area. If you live in a smaller city or town, your local library or county office likely has information about non-profits and community organizations in the area.

Making Sure Your Giving is Tax Deductible

A lot of us skip this step, but if you want to ensure your giving is tax deductible and thus lowers your tax liability, here’s what you need to keep track of. 

1) Make sure the organization you give to is qualified. To qualify, the organization must be a 501(c)(3) like a public charity, religious organization, or educational institution. You can confirm the organization’s status using this IRS Tax Exempt Organization Search Tool.

2) Keep Your Receipts. If you’re donating cash, keep your receipts, canceled checks, or bank statements showing your donations. If you’re donating things like clothes or furniture, document what you donated and the fair market value of each item. If your donation is over $500, you must complete an IRS Form 8283. Places like the Goodwill and Salvation Army will often provide receipts for non-cash donations.

3) Claim Your Deductions Correctly. Under most circumstances, you can deduct up to 60% of your adjusted gross income for donations. Your tax expert will ensure you have the proper claim documentation and forms.

4) Be sure to talk to your tax professional. Tax laws are already complex, and charitable giving taxation is no exception. Working with a CPA (certified public accountant) or tax professional will ensure you’re claiming the right amount of deductions and remaining compliant with the most up-to-date IRS rules.

Happy giving!

Vocab, Mindfulness, and Quick Facts

💰 My Final Two Cents

💬 Money Vocabulary:

Philanthropy: It’s not just money. Philanthropy refers to a host of charitable acts that support social welfare. Read more here.

🧘🏾‍♀️ Mindful Money Prompt:

Where would you like to see a positive impact made in the world? How do you want to show up to help create that impact? What healthy boundaries can you set to ensure you’re not making a positive impact at your own expense?

📠 Money Quick Fact:

Founded in 1787, the Free Africa Society was one of the first mutual aid and philanthropic societies established for free Black people in the United States. The society’s members contributed one shilling per month toward funding or programming that supported the social and economic needs of newly freed Black people in the Philadelphia area. Read more here.

Celebration Syndicate

🎉 Introducing a New Way to Celebrate You

Did you get a higher-paying job, pay off a credit card, or meet a savings goal? No matter what your money accomplishment is, we want to celebrate you! Share your money wins here for a chance to have them featured in future newsletters and on Ed. Opal socials!