In the United States, philanthropy plays a large role in shaping education, with investments meant to impact and make a change for future generations.
The racial divide, when it comes to education opportunities for students in the United States, has existed historically, and is now more amplified as a result of COVID-19. A recent study by EdBuild suggests that about 20 percent of students are enrolled in districts that are both poor and nonwhite, and stats show that just 5 percent of students live in white districts that are equally financially challenged.
The racial and economic disparities in schools provide a crisis at hand for future generations who will bear the brunt of the inequities as adults. Which is why it’s crucial now more than ever for philanthropists and investors to be part of the solution that could help remove those barriers and create more equitable school structures.
According to a study completed by the American Council on Education and funded by the TIAA Institute, in 2017, education received $412.26 billion, the second largest sector of philanthropic contributions in the United States.
America’s richest choose to invest in education because they believe that it will create change and have a positive impact in the world. Education is seen as an investment opportunity because it has the power to change the economic development and career opportunities for future generations.
While the philanthropic investment in American education is the second largest amount in comparison to other sectors, such as human resources, health and the environment/climate change, the contributions still pales when it comes to the overall spending of U.S. K-12 public schools per year.
Contributions from philanthropic organizations and funders are usually directed to influence policy change in education, to support teacher training and professional development, to improve learning efficacy and to