Investing in fair, inclusive data

As most savvy funders know, our collective future hinges on whether this era of unprecedented technological innovation finally breaks down decades of systemic exclusion for those without access…or only further encodes long standing biases. At the heart of the struggle is data. If we don’t center historically marginalized communities in the way we collect, use, and share information, we risk worsening inequalities across all sectors. This includes AI-driven financial decisions, health-tech solutions based on incomplete data, and the use of digital surveillance against communities that already distrust law enforcement and government agencies.

Nonprofits step up to defend data equity

The good news is that more nonprofits are stepping up to protect data equity. The challenge, however, is that some of the nonprofits making real impact on improving representation and equity in tech are often overly reliant on financial support from the same industry they’re seeking to hold accountable. Based on my organization’s own experience, there’s nothing inherently wrong with receiving general operating support from tech companies; in fact, it’s essential. As long as we can stay independent in our work and its outcomes, we benefit from industry support. Their participation helps ensure the issues we raise are addressed and not ignored.

But without additional funding sources, we’re overly dependent on corporate priorities that often shift with political agendas. For instance, in just four years since 2020, companies moved from bold commitments supporting racial justice to canceling investments and pulling back from participating in essential equity work amid a nationwide backlash against diversity, equity, and inclusion (DEI) efforts.

Tech industry falters in data equity accountability

In 2021, The Catalyze Tech Working Group, led by the Aspen Institute, published the Action to Catalyze Tech (ACT) Report, a blueprint for promoting “equity in tech.” Over 30 tech companies endorsed the report, making an explicit commitment to share non-identifiable DEI data with a third-party nonprofit. The goal was to create industry-wide standards for how companies collect, use, and share this information, and in 2022, the Tech Accountability Coalition published its Unbias the Future Equity Framework.

Yet, when it came time to share data that would bring the framework to life, many of our partners reported frustration trying to get their own companies to greenlight their participation. So instead of receiving data directly, we pivoted to collecting publicly released data from across the industry and shared highlights of our findings in a webinar earlier this year. Without continued investment from our industry partners, however, we’ve had to pause that critical component of our work at a moment when the need is more urgent than ever.

Philanthropy can support a fair and equitable data future

As a nonprofit convener, we’re asking philanthropy to support the ongoing work. Funders need to understand their role in ensuring organizations like ours can operate independently with a long-term vision, free from the shifting priorities of the industry. 

Philanthropy can play a pivotal role in shaping a fair and equitable data future. Unlike the tech industry, driven by profit motives and currently backing out of DEI commitments, funders can:

• prioritize ethical, transparent, and community-focused data practices;
• invest in robust data management systems tailored for community benefits, ensure responsible data use, and train staff to handle data properly;
• incentivize grantees to become better data stewards by creating data trusts or cooperatives that provide academics and advocates with better access to data; and
• prioritize community engagement and training local leaders in data management to empower communities, with trusted local institutions like libraries serving as partners.

As tech companies pull back from essential equity work, philanthropy has a role to play in ensuring accurate and equitable data collection, preventing biases in AI-driven tools, and establishing data impact assessments for all grantees to promote inclusive outcomes. They can also support the development and implementation of data equity policies and regulations to keep pace with technological advancements.

More investment is needed for better data outcomes

By investing in data infrastructure, advocating for communities, building data standards, and leading by example, funders can create a fair data economy that benefits all. Nonprofits and the sector at large will look to funders to lead the charge toward a future of data equity, protecting individuals and communities while unlocking data’s vast potential to address pressing global challenges.

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