TLDR:
- Inspire Access is using funds from donor-advised funds (DAFs) to combat racial wealth disparities in venture capital by investing in start-ups founded by women and people of color.
- The nonprofit allows DAF holders to designate how their funds are invested, providing them with a more direct role in decision-making.
The article discusses how Patrice King Brickman, founder and CEO of Inspire Access, decided to leverage DAF money to address the racial wealth gap in venture capital. She recognized the significant amount of funds sitting in DAF accounts and saw an opportunity to channel some of that money into start-ups led by underrepresented founders. By allowing DAF holders to make donations to Inspire Access and designate how the funds are invested, the nonprofit provides a more direct and hands-on approach to impact investing.
King Brickman acknowledges the controversial nature of using tax-deductible money to invest in potentially profit-making entities but argues that it’s a way to shift the power dynamic and support marginalized entrepreneurs. Inspire Access has already attracted commitments from donor/investors and is focusing on supporting minority-owned start-ups vetted by the nonprofit.
The article also highlights the racial disparities in venture capital funding and the importance of addressing these gaps in wealth creation. Inspire Access aims to support start-ups founded by women and people of color, focusing on impact investing to drive positive change in the industry. While the nonprofit may not focus on wages and working conditions in its due diligence process, it aims to avoid affiliations with organizations on the Southern Poverty Law Center’s Hate List.
