For every $100 in wealth held by white households in the U.S, Black households hold only $15, according to the U.S. Federal Reserve’s 2022 Survey of Consumer Finances.

‘Centuries of discrimination in public policy, financial practices, and societal norms that limited Black wealth accumulation have not been overcome, and will require broad structural changes to rectify the long-lasting impact of inequality,’ according to the Brookings Institute, a U.S. non-profit organisation, commenting on the report.

That’s a clear call for all sectors to play a role in addressing the yawning racial wealth gap. And over the past few years, activists focused on the issue have urged philanthropic funders to take a number of steps: Fund organisations that are led by Black, Indigenous, and people of colour (BIPOC) which serve BIPOC communities; work collaboratively; shift power and build trust relationships; check for barriers you’ve created. And most recently, play an active role in reparations for Black people.

Yes! Those are all good and necessary practices. That’s why I advocate a framework that integrates them all into one strategy: regenerative finance.