Image supplied by YLab
Philanthropy seeks to support society’s most vulnerable communities and help solve the most pressing social problems. However, the philanthropic sector is not always reflective of the diverse communities it seeks to support or inclusive of their voices, and therefore it is not as equitable as it could be. The Macquarie Group Foundation (the Foundation) is taking proactive steps to acknowledge structural inequities and strengthen its approach to grantmaking.
“We’ve worked with diversity, equity and inclusion experts to build our awareness of individual, institutional, and sector biases,” says Lauren O’Shaughnessy, Global Director of Impact at the Foundation. “Based on their recommendations, we are evolving our processes and decision making to be more accessible and inclusive of communities with diverse identities and lived experiences.
One of the ways the Foundation is improving its grantmaking processes is by expanding its network, beyond the existing networks of the Foundation team and Macquarie employees. In order to achieve this, the Foundation is implementing an open expression of interest (EOI) process for grantmaking from 2024 onwards. The Foundation is also implementing a consistent approach to reviewing EOIs to reduce unconscious bias. It will also add multiple reviewers as another way to bring in diverse perspectives.
“An open EOI approach will allow more organisations to reach the Foundation to pitch their ideas. We acknowledge it’s not a perfect solution, as not everyone has the resources or ability to complete a written request for funding, but it is more inclusive than our current invitation only process,” O’Shaughnessy explains.
The Foundation is also proactively prioritising funding to organisations that are reflective of the identities and lived experience of the community they are trying to serve. A recent grant to Asia Pacific Mission for Migrants (APMM) demonstrates this approach. The Foundation provided funding to support a grassroots community movement of migrant domestic women to advance their rights, promote their collective wellbeing and bring them together for mutual support and learning.
APMM believes that empowered migrants are central in upholding migrants’ rights, instituting policies favourable to them and their families, and contributing to development that serves their unique interests. APMM is led by a Board of Directors composed of migrant leaders and other supporters with direct migration experience."
Aaron Ceradoy
Managing Director of APMM
For those who progress past the EOI stage, the Foundation acknowledges that there is a sizeable amount of work involved in completing the grant application. To ease the workload on the non-profit organisation seeking the grant, the Foundation team completes as much of the grant application as possible before seeking input from the non-profit. This approach recognises that as a funder, the Foundation has more resources available and can use these to further support non-profit organisations.
“Our goal is to have non-profit organisations spending less time completing our grant application and more time focussing on their mission driven activities,” O’Shaughnessy explains. “We want to be a responsive and flexible funder working alongside community organisations.”
The Foundation seeks to make multi-year funding commitments and has a preference to support an organisation and its overall mission rather than fund specific projects. This preference is often welcomed by community organisations that typically find it much harder to secure funding for these essential operating costs.
The real value in receiving core operating expense funding is that it values the true impact of the work we are trying to do. It understands that to create impact with young people, we need a level of strategic flexibility, so we’re not constantly chasing funding or delivering new programs to sustain our funding. This way, we can double down on the impact we’re trying to create."
Brigid Canny
Executive Director of YLab
In addition to Macquarie’s Racial Equity Fund in the Americas, the Foundation is making additional grants to community organisations around the world who are promoting a more equitable and just society for all people. The Foundation is supporting Baobab to create a grantmaking organisation in the UK that is led ‘by and for’ Black people, ethnic minority communities and those affected by racism.
We are providing long-term, unrestricted funding guidance and support, disrupting a sector that is bureaucratic and colonial, by being boldly pro-Black, centring disability justice and nurturing an ecosystem that builds systemic change."
Chupa Phiri
The Baobab Foundation Committee Member
In Australia, the Foundation funded the development of a report, alongside the Centre for Social Impact (CSI) to document the current state of cultural diversity representation in the Australian philanthropic sector. The report found that a lack of cultural diversity in the philanthropic sector, especially at decision-making levels, can negatively impact the communities the sector seeks to serve.
CSI suggest that the philanthropic sector can play a leading role in addressing issues of race, equity, diversity and inclusion and provides actionable recommendations on how funders can improve their practices. Read the CSI report.
As well as these changes, the Foundation is considering other ways to increase equity in its grantmaking, such as incorporating community voices and lived experience into its grantmaking decision making processes, and increasing funding to organisations that are delivering equitable solutions to issues around the world.
Our journey to become a more equitable grantmaker continues to evolve. We don’t have all the answers, and we have more work to do, but we are committed to making positive changes and are encouraged by the feedback that we are receiving from the sector to date."
Lauren O’Shaughnessy
Global Director of Impact
Macquarie Group Foundation
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