In August 2020, we conducted a webinar to discuss our insights on a vital subject—economic opportunities for Black communities.
At Netflix, we recognize that powerful narratives can foster empathy and understanding, as demonstrated by works like Ava DuVernay’s 13th and the series Explained, which delve into America's racial wealth divide. Understanding the roots of systemic racism motivates us to turn this awareness into actionable steps. To this end, we commit to investing 2% of our cash reserves—up to $100 million—into organizations that support Black communities across the United States.
Our aim is to infuse more capital into these communities, making a real impact by helping families achieve homeownership, save for education, or support the launch and growth of small businesses. Data from the FDIC reveals that only 1% of America’s commercial banking assets are held by Black-owned or led banks. This lack of financial representation contributes to the alarming statistic that 19% of Black families have negative wealth or no assets, a rate more than double that of white families, as reported by the Federal Reserve. While Black banks strive to uplift their communities, they continually face challenges in accessing necessary capital. Meanwhile, larger banks that typically house assets for organizations like ours are working toward greater equity—but often do not reach the grassroots level that Black-led institutions do.
Therefore, we are committed to allocating some of our cash directly to these communities, with the hope of encouraging other major businesses to follow suit.
As our first initiative within this $100 million investment, we are directing $35 million of our cash into two primary allocations:
- $25 million will be deposited into the Black Economic Development Initiative, managed by the Local Initiatives Support Corporation (LISC), a nonprofit known for nurturing underfunded communities. This fund will channel investments into Black financial institutions and community development organizations that cater to low- and moderate-income residents across the U.S.
- $10 million will be utilized as a transformative deposit for Hope Credit Union, aiming to enhance economic opportunities in underrepresented areas of the Deep South. Hope’s CEO, Bill Bynum, has dedicated over thirty years to fostering economic mobility within struggling communities.
These investments aim to elevate social mobility within the communities served by these organizations. Additionally, as we scale our efforts, we plan to increase our investments in Black-led initiatives, and we hope other companies will also commit to similar actions. For instance, if each entity in the S&P 500 allocated just a fraction of their cash holdings toward initiatives like the Black Economic Development Initiative, it could translate into $20-$30 billion of new capital dedicated to building stronger communities, opening avenues for more Black families towards financial stability and equitable futures.
- Aaron Mitchell, Director of Talent Acquisition
Shannon Alwyn, Director of Treasury
Regarding the authors: Aaron Mitchell is part of the recruiting team at Netflix, driven by a passion for these issues influenced by Mehrsa Baradaran's work, The Color of Money: Black Banks and the Racial Wealth Gap. Partnering with Netflix Treasurer Shannon Alwyn, he has transformed this passion into actionable commitment, reflecting how our innovative work culture empowers staff at all levels to realize impactful ideas.
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