Jun 15, 2022 - Economy

Goldman doles out $10M to Black women-led orgs

Illustration of a Black woman's hands holding the city of Chicago.

Illustration: Axios Visuals

A philanthropic push spearheaded by Goldman Sachs will invest $10 million over a series of years in nonprofits led by Black women, the banking giant announced on Wednesday.

Driving the news: In partnership with its “One Million Black Women” initiative, the bank is doling out grants to 50 organizations, spanning a wide range of geographical areas and organizational missions.

  • Each recipient will get two years' worth of general operating funding, ranging from $50,000 to $250,000.
  • Every grantee is led by a Black woman and has multiple Black women in “significant positions of leadership,” according to Goldman.

Why it matters: The Wall Street giant is spending big to address historic gender and racial inequities faced by women of color. Goldman’s proprietary research has found that limited access to funding is one of the biggest roadblocks for Black women trying to start their own businesses and nonprofits.

  • Via One Million Black Women, launched in March 2021, Goldman has committed $10 billion in direct capital and $100 million in philanthropy over 10 years to boost growth and foster entrepreneurship among that particular demographic.
  • Major companies and philanthropies have made significant financial contributions to address inequities in entrepreneurship. Last week, Starbucks founder Howard Schultz announced a $100 million fund devoted to diverse businesses.

What they’re saying: “We know one of the best ways to create a more inclusive economy is to invest in Black women,” David Solomon, Goldman’s chairman and CEO, said in a statement.

  • “From our listening sessions, we’ve learned just how transformative Black women-led nonprofits have been for communities, and now we’re going to spotlight these organizations and give their leaders the resources they need to increase their impact,” he added.

Our thought bubble: Black women-led businesses were booming before COVID-19 came along, which decimated small businesses overall. Meanwhile, data suggests that Black women are more likely than any other demographic group to start their own businesses, but they're still underrepresented among established company founders.

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