A New Leader Seeks to Expand Charity’s Reach and Mission

NEW ON THE JOB

In November, when Diane L. Bell-McKoy was named president of Associated Black Charities — after a decade of coveting the position — she had a good

idea of what the organization needed: a strong fund raiser who had local connections and experience running a multimillion-dollar organization.

Her desire for the position stemmed from a sense that she would be a perfect fit for the job of leading one of the largest black-run social-service groups in the United States. “I’m a possibilities person, and I’ve always felt at the deepest gut level that Associated Black Charities could be a very strong player here in Maryland, as well as become one of the top black grant-making organizations in the country,” says Ms. Bell-McKoy, 55.

In order to turn those possibilities into realities, she says, the 22-year-old organization will need to transform itself from a charity that gets most of its money from the federal government for services for people with AIDS and HIV to one that can raise money through private sources.

Besides distributing federal funds to AIDS groups, Associated Black Charities also manages donor-advised funds and frequently takes a lead role in managing community-development programs in the poorest counties in Maryland.

The organization’s board believes that the group needs to grow faster, in order to support more programs that provide aid to teetering neighborhoods, says Harold G. Gordon, its board chairman.

It will need to expand its $20-million annual budget, only $1-million of which is unrestricted, so that it can provide more help to a wider range of charities. Currently, the group administers grant money from the Annie E. Casey Foundation, in Baltimore, for programs that help young people from needy families. Ms. Bell-McKoy would like to gather the funds necessary so that Associated Black Charities can make grants of its own, to support day-care centers and job-training programs for released prisoners.

Despite the need for more money with no strings attached, Ms. Bell-McKoy has put on hold plans for a $50-million capital campaign that would provide the organization with both an endowment and the capability to expand its services.

Instead, she says, she will look for ways to use Associated Black Charities’ reputation to cultivate relationships that could lead to more donations.

“It might pay to look for things like partnerships with major philanthropic organizations that want to hook up with a black organization,” she says. “The value we would add is that we’d provide them with a gateway — the relationships and the respect we’ve earned in the African-American community.”

Ms. Bell-McKoy, who served as a high-level aide to Kurt L. Schmoke during his tenure as the mayor of Baltimore, is capable and well connected, says Mr. Schmoke, currently the dean of the Howard University School of Law, in Washington.

“Diane has the management skills to bring people together and to get disparate groups working toward common goals. She’s a superb organizer and motivator of people,” he says.

The new leader was a finalist two years ago when the charity hired her predecessor, Gary Officer, who left the job in July.

During her interview this time around, board members were particularly impressed by Ms. Bell-McKoy’s numerous connections.

“In her position, you have to deal with bankers, investment people, academics,” Mr. Gordon says. “She has relationships with all kinds of people and can relate to all of them equally well.”

Ms. Bell-McKoy says that as she works to bridge the economic gap between blacks and whites, she will also make substantial changes to rid the charity of an operating deficit.

Already, she has cut two weeks’ pay from her $150,000-per-year salary and searched for ways to trim a 22-person staff. In January, the charity hired a consulting firm to evaluate how it is managed.

In an interview at her office on the edge of Baltimore’s arts district, Ms. Bell-McKoy discussed her new position:

Why has it been so hard for Associated Black Charities to raise money locally?

We’ve done a great job of getting people to our annual gala, as well as getting corporate sponsorships. There are a number of people in Baltimore who have given. But we haven’t tapped deeply into the donor base in other parts of the state.

We had a firm do a survey across the state. It found that we have high name recognition. But we haven’t been methodical in using that name recognition to spur development. We’ll change how we approach all that.

What kind of support are you looking to garner from foundations?

There are a couple of local foundations where I’ve had connections that are looking to help African-Americans advance to mid-level careers. So, we’re talking about how to do that together. If they make us the lead organization on that, they could add money to make that program happen.

Do you get inquiries from charities asking for your help, either through grants or expertise?

We do get those calls. We’re often asked to help charities get started. We’ve been asked by some to be a fiscal agent for them until they are up and running. We’re looking into how we can incubate and help young nonprofits. That may turn out to be a market niche for us, something we could develop a specialty in.

What can you do to help eliminate the wealth disparity between blacks and whites, which you’ve called “the civil-rights issue of the 21st century”?

The next cycle for growth in this country is for minorities to have a greater foothold in the economics of it. There’s a higher rate of foreclosure on homes for African-Americans.

A lot of it is because more African-Americans take on higher-risk loans or don’t understand what it means to refinance their homes.

It’s part of a larger wealth-literacy issue. Eighty percent of African-Americans and Hispanics have the bulk of their wealth tied up in their homes. We need to educate people more about what this means.

We can partner here with a local housing group around the issue of foreclosure.

We can connect people across the state to information that can help them manage their lives differently. I see our job as to provide these linkages so the wealth-literacy issue is addressed in a strategic way.

You’ve wanted this job for 10 years. How do you feel now that you have it? And do you worry that you’ll be overwhelmed by the need to raise money?

I feel blessed and highly favored. I’ve seen where Associated Black Charities can make a difference at the community level. ABC has the chance to be one of the premier voices at the table here. As far as whether I can do the heavy lifting, I believe I have the connections to make that happen.