I whole heartedly agree with the assertion that advancing equity should be central to collective impact.
However, I believe the definition of equity offered by the Urban Strategies Council is incomplete. There are two meanings to equity, first, fairness and justice, secondly, ownership and wealth. The ownership and wealth meaning is the result of what can usefully be called the equity equation: what you own minus what you owe is what you own without restriction. Equity is fairness and justice and unrestricted ownership and wealth.
Combining these meanings of equity speaks directly to the challenge of “how to center equity in the practice of collective impact”. A focus on fairness and justice is critical in the context of philanthropy. An additional focus on growing ownership and wealth from the bottom up supports empowerment and self-determination. This additional focus is enabled by financial competency. Financial competency is the ability to make decisions and evaluate actions based on their impact on the equity position of an individual, enterprise, or community.
The good news is that financial competency is a lot more accessible than most people think. It is built upon a foundation of relatively simple arithmetic and a concise vocabulary. The vocabulary of financial competency clarifies our understanding of what we own, owe, and control and informs our strategic and tactical choices. Financial competency functions as a reliable yardstick for individual and shared measurement. Financial competency allows us to to be clear-eyed about the mechanisms of systematic and historical impoverishment and more readily recognize the building blocks of restorative justice. Financial competency is essential for individuals, organizations, and communities seeking to grow their own wealth and power.
The bad news is that, despite the fact that financial decision making pervades almost every aspect of our lives, financial competency is perceived by many as an obscure domain that is only of interest ‘in business’ and not applicable or necessary to philanthropy. Financial competency is not recognized as a core competency that should be developed progressively everywhere. Lack of financial competency, in our communities of practice as well as in the communities we seek to serve, represents a tremendous challenge.
The first step, in my opinion, is to expand our definition of equity. I suggest that equity is fairness and justice achieved through systematically assessing disparities in opportunities, outcomes, OWNERSHIP, WEALTH, and representation and redressing disparities through targeted actions. An additional focus on financial competency - what it is, and where, when, and how it can be strengthened - will only serve to enhance our efforts to bring about fairness and justice for all.
This is such a vital article for those of us in global development to read. Chattanooga 2.0’s and the Aboriginal views are important to shift accountability from the pinnacle being donors to the true clients being the participants and local partners themselves. Thank you very much, I will share widely.
COMMENTS
BY Jon Bates
ON December 21, 2021 07:44 AM
I whole heartedly agree with the assertion that advancing equity should be central to collective impact.
However, I believe the definition of equity offered by the Urban Strategies Council is incomplete. There are two meanings to equity, first, fairness and justice, secondly, ownership and wealth. The ownership and wealth meaning is the result of what can usefully be called the equity equation: what you own minus what you owe is what you own without restriction. Equity is fairness and justice and unrestricted ownership and wealth.
Combining these meanings of equity speaks directly to the challenge of “how to center equity in the practice of collective impact”. A focus on fairness and justice is critical in the context of philanthropy. An additional focus on growing ownership and wealth from the bottom up supports empowerment and self-determination. This additional focus is enabled by financial competency. Financial competency is the ability to make decisions and evaluate actions based on their impact on the equity position of an individual, enterprise, or community.
The good news is that financial competency is a lot more accessible than most people think. It is built upon a foundation of relatively simple arithmetic and a concise vocabulary. The vocabulary of financial competency clarifies our understanding of what we own, owe, and control and informs our strategic and tactical choices. Financial competency functions as a reliable yardstick for individual and shared measurement. Financial competency allows us to to be clear-eyed about the mechanisms of systematic and historical impoverishment and more readily recognize the building blocks of restorative justice. Financial competency is essential for individuals, organizations, and communities seeking to grow their own wealth and power.
The bad news is that, despite the fact that financial decision making pervades almost every aspect of our lives, financial competency is perceived by many as an obscure domain that is only of interest ‘in business’ and not applicable or necessary to philanthropy. Financial competency is not recognized as a core competency that should be developed progressively everywhere. Lack of financial competency, in our communities of practice as well as in the communities we seek to serve, represents a tremendous challenge.
The first step, in my opinion, is to expand our definition of equity. I suggest that equity is fairness and justice achieved through systematically assessing disparities in opportunities, outcomes, OWNERSHIP, WEALTH, and representation and redressing disparities through targeted actions. An additional focus on financial competency - what it is, and where, when, and how it can be strengthened - will only serve to enhance our efforts to bring about fairness and justice for all.
BY Jindra Cekan, PhD
ON January 13, 2022 07:38 PM
This is such a vital article for those of us in global development to read. Chattanooga 2.0’s and the Aboriginal views are important to shift accountability from the pinnacle being donors to the true clients being the participants and local partners themselves. Thank you very much, I will share widely.