Philanthropic giving is at an all-time high. There are more charitable organizations than ever before, and many of them are working to provide services to low-income communities. But there is still a huge disparity in wealth distribution, which often leads to inequity in philanthropic giving. Ensuring Equity in Philanthropy is important to ensure that there is more equitable philanthropy and that everyone can benefit from the support provided by charitable organizations. Major donors and funders must work to ensure that low-income and minority people can benefit from the charitable giving of their organizations. They can do this by reaching out to those who need help, such as those living in shelters or homeless individuals, rather than just working with well-off and established organizations. Here are some ways that funders and donors can help reduce inequities in philanthropy

1. Philanthropic Portfolio

Many charities have a long history of serving primarily the wealthy. To ensure that all people benefit from philanthropic giving, funders and donors must identify which organizations are reaching underserved communities and dedicate a portion of their portfolio to appropriate and efficient services. This can be done through the use of philanthropic portfolio analysis. Such an analysis allows charitable organizations to identify the organizations that work effectively with the disadvantaged and work in those areas with low overhead costs.

2. Grant Making

Some funders and donors make grants to charitable organizations on an annual basis rather than donating one lump sum. Since this process takes time, foundations that work in underserved communities are often more effective at supporting causes and are more efficient with the funds raised. Additionally, funders can increase the number of charitable organizations that participate in their programs if they only give small grants rather than one large grant.

3. Governance and Decision-Making Power Sharing

Non-profit organizations are often structured to make decisions that benefit the board of directors or top management. In many cases, these leaders do not reflect the will of their customers or clients. This can lead to inequality in philanthropy and other areas of life where decisions are made on behalf of other people. By creating a system in which there is more sharing of power, funders and donors can offer better results and be more effective at serving their communities.