Bank of America Providing $400k in Grant Relief

• Author: Jessica Williams
• Posted: 2024-06-15

Baltimore, Maryland is one of the most diverse cities in the United States, and has unfortunately been one of the hardest hit in 2020 by the global virus pandemic. There are many organizations in the nation fighting to help people who are struggling, like Bank of America, who have announced that they've given over nearly half a million dollars in grants for two of the cities largest nonprofit organizations. Bank of America has given a combined $400,000 in grant money to Baltimore Community Lending and NPower as its recipients of the grants. These organizations were chosen due to their work in the community in helping people achieve upward mobility economically. They typically target things like veterans, racial inequity and homelessness, among other community-based issues.

NPower is actually based out of New York. They're a nonprofit that has been making big gains in fighting for American veterans and other young adults who come from communities that are underserved. They help by attempting to launch digital careers for people, which they hope will make them financially independent and able to compete in today's digital economy. While being located in New York, NPower also has big ties in Baltimore. As for Baltimore Community Lending, they're based right there in the city, and their goal is to help create an alternative financial institution that will give low-interest loans out to community members in order to get housing, to start small businesses, to pay outstanding bills, etc. Both of these organizations have been very active throughout the length of the pandemic, and they have drawn a lot of recognition and acclaim for their work, which is why they were chosen by Bank of America.

Some critics have already came out and voiced their disapproval at Bank of America's gesture, citing that it's not enough. In total, the company is worth an estimated $295 billion, and they have experienced a monumental uptick in their growth and worth during the pandemic. Over the past ten months, Bank of America has increased by more than 30% in value. Offering $400,000 to a community that has helped contribute to that gain, by banking with the organization, is a "slap in the face," according to one outspoken critic of the move. "These people give you the equivalent of change found in their sofa cushions, and we're expected to return such a gesture with our loyalty in business," they continued.

But spokespeople for Bank of America assure communities like Baltimore that it's about a long-term plan to help revitalize these communities, not just simply offering money. For instance, Bank of America's monetary grant isn't all that the organization is offering to the people of Baltimore. Bank of America is also giving both of these chosen nonprofit organizations a year of leadership training, along with access to a network of peer organizations. Bank of America is hoping to help these nonprofits grow, so that they will be able to raise exponentially more money for grants to help members of their community.

Are Small Grants Enough?

Many people are starting to question the true intention of these organizations, when they see grants come in so infrequently and in such small amounts. It's important to note here that the Bank of America is far and away the largest banking center in all of Baltimore, and it deals with over $28.6 billion in deposits just from that single metro area. Realistically, the $400,000 given in grants is a tiny fraction of what Bank of America has made from Baltimore's residents in only the past week, never mind the past year or the past decade. Many citizens believe that it's time these companies gave back in a meaningful way, not just with some small cash drop that makes them look charitable in the eyes of consumers.

Though spokespeople from Bank of America paint a much different story. They claim that grant initiatives like these, the $400,000, only make news due to the pandemic, when the fact is that they're giving back all the time. Since 2004, Bank of America claim they have invested more than $260 million in roughly 50 communities of the Greater Baltimore Area, and they have formed partnerships with over 1,300 nonprofits, fighting for change among Baltimore's residents. "No one really knows about these [initiatives]," said a spokesperson for Bank of America's community lending arm. "We do not give back as a matter of advertising; what we do to work directly with the community is for the community, not for marketing."

This checks out. According to financial records, Bank of America has given over $260 million since 2004. The most recent $400,000 is just the latest in a long history of donations and grants.