Nonprofit News From Elsewhere
The U.S. system of food charity has been essential during the pandemic, but it also papers over, or even helps perpetuate, widespread food insecurity. Food banks subsidize poverty-level wages and take the heat off of corporations to pay a living wage. Meanwhile, they give favorable publicity to those same corporations, some of which donate food by the ton. Food banks are often governed by white board members from private industry, a world away from their clients, many of whom are people of color. “Food philanthropy is focused on mitigating rather than ending hunger because it is connected to capitalism by the hip,” said Raj Patel, a scholar of food poverty and philanthropy. “There is so much money to be made in food aid through tax breaks, free publicity, salaried executives, electronic Snap cards.” (Guardian)
Thousands of people living in affordable-housing developments could be squeezed out by private investors in a federal program gone awry. The Low-Income Housing Tax Credit program, launched in 1986, gave tax credits to lenders, usually large banks, that supported housing nonprofits. At the end of 15 years, the nonprofit could buy out the lender’s stake at below-market rates. But many lenders sold their shares instead, and many of the buyers are investors looking to reap market prices from the sales of the properties. In Boston, the Tenants’ Development Corporation and Alden Torch Financial are suing each other after Alden rejected a $17 million offer for its share of 36 properties, which Alden says are worth as much as $54 million. “Honestly, I think it’s a national crisis,” said David Goldstein, a lawyer for a Brooklyn, N.Y., housing group locked in a similar battle. (WBUR)
More News
Opinion
- People-Focused Philanthropy Is on the Way Out. Philanthropy That Divides Is Taking Over. (USA Today)
- Maverick ‘Impact-First’ Investing Sits Between Philanthropy and Market-Rate Returns (MarketWatch)
