Foundations Shouldn’t Fear Immigration Measure

To the Editor:

As philanthropists—individuals, corporations, and foundations—consider the best ways to respond to the outcome of immigration reform, inevitably there will be fear-mongers warning that population increases of any kind are bad for the United States. Such views were strongly articulated in an opinion piece by John Rohe, “Immigration Issues Brims With Ethical Concerns for Philanthropists,” in The Chronicle’s May 23 issue.

Many of the immigrants who will be able to come out of the shadows and join the U.S. mainstream under the proposals now before Congress are Latino. So are many of the prospective immigrants. They are not just the abstract numbers of the overpopulation crowd. They have faces and families already here in many cases, with children who recite the Pledge of Allegiance every day in our schools.

Yes, some receive public benefits to pay for necessities that they cannot afford, such as child health care. But they also give back philanthropically and in direct support for public programs. In May, The New York Times reported that immigrants paying into the Medicare trust fund for hospitalizations from 2002 and 2009 generated a $115-billion surplus, compared with a $28- billion deficit from the American-born population during the same period. The Times report then went on to say:

“The findings shed light on what demographers have long known: Immigrants are crucial in balancing the age structure of American society, providing an infusion of young, working-age adults who support the country’s aging population and help cover the costs of Medicare and Social Security. And with the largest generation in the United States, the baby boomers, now starting to retire, the financial help from immigrants has never been more needed, experts said.”

But social-program benefits are not what drive immigrants to come here. Many are working hard for a chance at their American Dream, not only sending money to their homeland but reaching for a foothold and, in the process, growing our economy and our competitive advantage.

In fact, what the data suggest is that investing intentionally in Latino-led, Latino-serving nonprofits (and businesses) is a compelling and effective strategy. There are opportunities right now and moving forward for philanthropists willing to refocus strategically to achieve their goals while supporting a growing Latino community.

Philanthropists in the United States already give generously to enhance America’s quality of life, investing in business incubation, antipoverty programs, educational attainment, and health and human-services programs.

Despite overall increases, philanthropic giving has not maximized impact for the fastest-growing ethnic population and the nation’s largest minority. From 2000 to 2010, the U.S. Latino population grew by 43 percent, four times the total population growth rate, and yet philanthropists dedicated less than 2 percent of giving to U.S. Latino nonprofits.

Strategic changes to social capital investment would boost our economy, create jobs, expand our cultural horizons, and level the playing field for all Americans. Philanthropists can transform goals for a better tomorrow into reality by shifting to more innovative investments in social capital with increased focus in Latino organizations.

If just a fraction of the $41-billion in foundation grants had been earmarked for high- growth, high-yield organizations in Latino communities, philanthropists would have mitigated dire effects of a 66-percent drop in median household net worth for Latinos from 2005 to 2009. Net worth for blacks dropped 53 percent and for non-Latino whites it dropped only 16 percent.

The recession has passed and with it the talk of immigrants taking jobs that Americans might actually want should have been put to rest as well. Consider the implications of these economic-recovery indicators:

Business engines. Investments in programs that encourage Latino small-business owners are good for business and the country. Hispanics own more than 8 percent of U.S. businesses, provide 1.89 million jobs, and meet a payroll of $55-billion.

Community assets. Programs that help boost assets and wealth creation for Latinos also build the middle class and advance equity in educational attainment, health disparities, and other issues. From 2008 to 2010, Hispanics represented 16 percent of the nation’s population, yet earned 9 percent of its income. Whites were 64 percent of the population and earned 76 percent of its income, while blacks represented 13 percent and earned 8 percent of its income. Typical wealth assets were $6,325 for Latino households, $113,149 for white households, and $5,677 for black households

Educational attainment. Education is easily the key for long-term growth and prosperity, and the future work force will depend heavily on minority labor. By focusing on educational attainment, foundations can nurture economic expansion and improve America’s competitive advantage in global markets. Out of 1.56 million bachelor-degree recipients in 2008, 71.8 percent were white, 9.8 percent were black, 7.9 percent Hispanic, and 7 percent Asian.

Health disparities. Equity in health care demands urgent attention. Philanthropies and corporations can help address challenges of linguistic and cultural competence and help achieve equity in access, treatment, and follow-up at local, regional, state, and national levels. A study of 3,200 hospitals found that the nation’s worst hospitals treat more than twice as many elderly minority and poor patients compared with the best hospitals. The worst hospitals’ patients were more likely to die of heart attacks or pneumonia.

Approximately one in six Americans is of Latino origin, and yet philanthropic giving levels to Latino organizations have remained flat for a decade.

A third of U.S. funders do not provide funding for Latino community priorities because of the extremely narrow scope of their grant-making authority.

Of course, there are philanthropists who fund Latino groups in meaningful ways. The California Wellness Foundation led the way from 2007 to 2009, targeting 36 percent of its overall giving for Latinos.

Rounding out the top five foundations are: Marguerite Casey Foundation, 13.6 percent; Weingart Foundation, 12.4 percent; Edna McConnell Clark Foundation, 9.1 percent; and California Endowment and Robert Wood Johnson Foundation, each with 4.9 percent.

Others that substantially target the Latino sector include the Ford Foundation, Bank of America Charitable Foundation, James Irvine Foundation, and the Bill & Melinda Gates Foundation. These foundations point to synergies that are pushing America beyond the Great Recession.

Philanthropy can be the innovation engine that helps America work more effectively within 21st-century realities, which include the need for effective and humane immigration reform. Targeting Latino-led and Latino-serving nonprofits and businesses for philanthropic support is key to unlocking our nation’s economic potential.

Diana Campoamor
President
Hispanics in Philanthropy