The Importance of Giving Back: The 2% Solution

This time of year, it is essential for all of us to take stock of the work that many are doing to uplift our communities. From individuals to local community-based organizations and nonprofits, these boots-on-the-ground operations are necessary to truly understand what each community needs in order to thrive. Their work should be an inspiration to us, one that helps illuminate how we can best use our talents and resources to support our neighbors and communities.

Addressing systemic racial injustices is a complex problem and the solutions are not always straightforward, as there are oftentimes complicated, overlapping issues at play. While companies pledging financial support mean well, we should acknowledge that communities have highly specialized needs. To help companies facilitate the strategic deployment of capital into communities with the greatest need, I am a strong advocate of The 2% Solution.

The 2% Solution is predicated on one basic fact — the average American family donates 2% of their annual income to charitable organizations and activities every year. If the average American family can give this much in support of others, I believe that large corporations could do the same. Industry and business leaders are core pillars with an important role to play in this fight. They have the potential to be strong, trusted advocates on behalf of their communities and many have the ability and resources to reshape entire towns and cities.

By closing the racial wealth gap, researchers estimate that we could add an additional $1.5 trillion to our economy. This would help to create good-paying jobs and provide access to financial markets, allowing Black Americans to create generational wealth that can be passed on to their children.

Joining forces with the leadership at 波士顿谘询公司 and PayPal , we created the Southern Communities Initiative to help facilitate the distribution of money and resources to the communities where we could make the greatest impact on Black Americans. By working with local partners in six communities — Atlanta, Birmingham, Charlotte, Houston, Memphis, and New Orleans — we lay out concrete, measurable ways businesses can divert both financial and in-kind support to advance racial equity and strengthen local capacity to sustain those improvements long into the future. This is just one example of how businesses can embody the spirit of The 2% Solution.

Another way that Vista Equity Partners is helping to lay the foundation for social justice is through the Economic Opportunity Coalition (EOC). As a founding member of the EOC, we work in coordination with the National Economic Council, U.S. Department of the Treasury , Consumer Financial Protection Bureau , Freedman's Bank Forum, and other industry stakeholders to align public and private investments to accelerate inclusive economic growth. As part of our commitment to this effort, Vista is committing to shift 2% of our firm’s cash balance to Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs). Together, all EOC members have committed to shifting $1 billion in capital to CDFIs and MDIs, which will vastly expand their ability to provide access to affordable capital in communities of color.

While we can, and should, take a moment to reflect during this time on the progress that has been made, we cannot become complacent. With the growing support that we are seeing for The 2% Solution, including the Southern Communities Initiative and the EOC, we will activate the whole of our society to create a nation where every American is empowered to achieve their full potential and is celebrated for it.