Case Study: Microsoft Philanthropies
challenges itself to center Black-led nonprofits
An arm of tech giant Microsoft, Microsoft Philanthropies (MSP), fast-tracks a grant program for Black-led nonprofits.
Wanting to ensure the needs of the grantees are centered, MSP hires ITBOM to guide them in a trust-based approach.
A year later, the nonprofits all report significantly higher revenues.
In response to the uprising in the wake of George Floyd’s murder,
Microsoft CEO Satya Nadella issued a statement that included a three-pillared commitment to racial justice:
1. Increase representation and culture of inclusion
2. Engage the ecosystem
3. Strengthen communities
The third pillar is where Microsoft Philanthropies stepped in. They committed to a digital-skilling initiative to invest $15 million. Fifty Black-led nonprofits would receive $100,000 a year for three years. Communities of practice would also be set up to facilitate peer-led knowledge sharing and community building among the grantees.
The timeline was fast. Wanting to make sure they were centering the needs and perspectives of the grantees, MSP engaged with ITBOM LLC, headed by CEO Shari Dunn. Shari’s experience as a former foundation executive, running a national foundation, nonprofit executive, as the former executive director of Dress for Success in Portland, Oregon, where she piloted a tech skilling program for low-income women, and her role as a diversity, equity, and inclusion consultant made her the perfect fit. Supporting Shari was Dr. Candice Staples, a frequent collaborator with expertise in adult learning and peer support.
Solutions
Building competency and commonality
In a departure from the usual process, MSP formed two steering committees, one internal and one made up of leaders from the Black nonprofit community, to review the applicants and recommend the grantees. “We wanted to ensure that we had a diverse group of both internal and external stakeholders and invite the community to be a part of the process,” said Jolenta Coleman-Bush, senior program manager.
ITBOM worked closely with the committees to build competency around racial bias in giving. The first step was a presentation on the history of philanthropy and how it has excluded or been overly restrictive of marginalized groups. This helped give the teams a common language and understanding of the issues.
Next, ITBOM met with the committees to facilitate in-depth discussions where ideas about award criteria were examined. Does the number of people an organization serves necessarily reflect the group’s impact? If scalability is a requirement, how does that affect groups where scarce funding doesn’t allow it?
ITBOM worked closely with the committees to build competency around racial bias in giving. The first step was a presentation on the history of philanthropy and how it has excluded or been overly restrictive of marginalized groups. This helped give the teams a common language and understanding of the issues.
Next, ITBOM met with the committees to facilitate in-depth discussions where ideas about award criteria were examined. Does the number of people an organization serves necessarily reflect the group’s impact? If scalability is a requirement, how does that affect groups where scarce funding doesn’t allow it?
Why was the program necessary?
• White-led nonprofits had budgets that were 24% larger than those led by people of color
• Unrestricted assets of nonprofits with leaders of color were 76% smaller than those led by whites
—Echoing Green 2020 report, based on their pool of early-state applicants
Shari's facilitation of the "why" helped strengthen the committees’ common purpose. “She did a very good job at recognizing the perspectives that everyone was coming from and then making sure that we were all building some shared language,” said Coleman-Bush.
A place for grantees to express the unexpressed
With the 50 organizations awarded, it was time for the next phase of community building: designing and leading the Communities of Practice. These were training and discussion groups for the grantees to build knowledge and community.
ITBOM worked closely with the grantees to design these sessions based on their needs. This was a key step where the concepts of trust-based philanthropy came into play. Shari acted as a go-between for the grantees and Microsoft so that they could freely express their needs and concerns without worrying about how it would affect their relationship with the grantor.
Said Microsoft manager Warren Flood, “Shari made sure that the interests, both expressed and unexpressed, of the grantees was our true north.”
ITBOM worked closely with the grantees to design these sessions based on their needs. This was a key step where the concepts of trust-based philanthropy came into play. Shari acted as a go-between for the grantees and Microsoft so that they could freely express their needs and concerns without worrying about how it would affect their relationship with the grantor.
Said Microsoft manager Warren Flood, “Shari made sure that the interests, both expressed and unexpressed, of the grantees was our true north.”
ITBOM lead four quarterly leadership sessions on relevant topics:
• Defining tech enablement and working with MSP
• Social media/high impact instructional practices
• Reimaging the nonprofit
• Developing your brand
In the subsequent bimonthly cohort-led discussion groups, participants found an opportunity to speak freely about the challenges of being a Black-led organization and to share successful strategies. Said one participant, "I am not alone in my challenges! I am part of a beautiful community of compassionate and extremely [talented] Black leaders. This group has been a living affirmation!"
• Social media/high impact instructional practices
• Reimaging the nonprofit
• Developing your brand
In the subsequent bimonthly cohort-led discussion groups, participants found an opportunity to speak freely about the challenges of being a Black-led organization and to share successful strategies. Said one participant, "I am not alone in my challenges! I am part of a beautiful community of compassionate and extremely [talented] Black leaders. This group has been a living affirmation!"
Results
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In addition to the harder-to-measure benefit of community building and creating a safe environment, the grantees experienced an increase in revenue. This significant growth may be due to multiple factors: The competency training provided in the Communities of Practice and having Microsoft as a strategic partner and funder, which gave these organizations an increased level of perceived legitimacy as they pursued other funding opportunities.
Conclusion
Microsoft made great strides toward its goal of strengthening communities through MSP’s digital skilling initiative and the Communities of Practice. ITBOM’s participation helped MSP act on its mission without falling into the historical traps of philanthropy.
Naria Santa Lucia, general manager for Digital Inclusion and US Community Engagement for MSP, pointed to the training Shari gave on trust-based philanthropy and how her background in nonprofits helped her connect authentically with the grantees. “Those two things were really the secret sauce that ITBOM brought to the table for us,” she said.