Innovation at Risk: Why California Philanthropy Must Invest in Equitable Technology

Philanthropy doesn’t usually think of itself as a player in the tech industry—but it should.

California is home to over 30K foundations, managing nearly $950 billion in assets. It’s also home to the largest tech economy in the world. But the gap between these two powerhouses—capital and innovation—is growing more dangerous by the day.

We are in a moment of massive technological transformation. From artificial intelligence to automation, emerging technologies are already reshaping jobs, education, healthcare, climate response, immigration systems, and civil rights protections. Yet, most philanthropic missions haven’t been updated to reflect this reality.

As a result, the people most impacted by these technologies—low-income, Black, Latine, Indigenous, and immigrant communities—are being left out of shaping them. Philanthropy must step in.

Workforce Representation: The Gaps are Consistent

At the Kapor Foundation, our research reveals a persistent pattern of exclusion nationally of people of color as the builders of emerging technologies. One in five American workers are Latine; but just one in ten American tech workers are Latine, and only 5% of executive roles in tech are held by Latine people. Black talent makes up 3.7% of workers in technical roles across large tech companies, though Black workers make up 13% of the American labor force. 

In California, our innovation engine is running—but with serious blind spots. Women represent only 26% of the state’s tech workforce. Latine workers hold just 12% of tech roles, and Black workers only 3%—despite these groups making up far larger shares of California’s population.

These gaps aren’t confined to Silicon Valley—they cascade across issue areas. Whether you're funding early childhood education, environmental justice, healthcare access, or economic mobility, technology is shaping outcomes in your field.

If AI is helping determine who gets hired, who gets housing, who gets healthcare—or who is excluded—we can no longer afford to see tech as someone else’s issue. 

Partnerships & Progress

California’s philanthropic infrastructure is massive. With over 200,000 nonprofits working across issue areas, the reach is undeniable. But how many of these organizations are equipped to navigate the ethical, economic, and equity implications of AI or automation? How many are ensuring that the communities they serve have access to the jobs, tools, and protections necessary to thrive in a tech-driven future? Right now, too few.

Last year, the Kapor Foundation, Omidyar Network, and the San Francisco Foundation joined forces to make a $25 million commitment to advance responsible, equitable AI in California. Announced alongside Governor Newsom’s Executive Order N-12-23 on Generative AI, this initiative is a first-of-its-kind philanthropic response to the fast-moving shifts in technology. Innovating Forward: Steps for Philanthropy

It’s a start—but we need far more funders to join us and to bring a tech equity lens to their work. Just as we now see climate change as a cross-cutting issue, we must treat technology the same way—as a systemic force that affects every mission area. You don’t need to be a tech expert to engage in this work. In fact, we need multi-disciplined perspectives to help innovate forward. So, if we start with a few questions:

• How will AI and automation affect the communities I serve? 

• Who is benefiting the most and the least as well as what trade offs are being made when technology access and development is concentrated by a few?
• How can I support nonprofits to build tech fluency, access, and resilience?

• How do we ensure equity is baked into the tools and systems shaping the future of our issue area?

Apply an equity lens. Start by revisiting your mission and strategy with a tech equity lens. Fund research that maps the risks of automation in your field. Support education and workforce initiatives that prepare marginalized communities for tech-driven jobs and economies. Back policy efforts that ensure transparency and safety guardrails in AI use—particularly in government and public services.

And importantly, diversify who is building these tools. Inclusive innovation doesn’t just protect communities—it drives better outcomes for all. This is a pivotal moment to ensure that innovation is inclusive that centers not only the needs but also the ingenuity of our communities. This is why we need to invest in the communities we serve and help them be the innovators and not just let a homogenous group of developers and investors continue to determine the use cases of technology miles away from the issues and people. The choices we make now will define whether emerging technologies widen inequities—or help close them.

California is a global leader in tech innovation. If our philanthropy isn’t at the forefront of funding equitable tech futures in this moment of history, who will lead the way? We must lead.

About the Author

Lili Gangas is the Chief Technology Community Officer at the Kapor Center, an operating foundation at the intersection of technology and racial justice, providing research and thought leadership, operating programs, supporting strategic partnerships and investments to increase diversity across the tech ecosystem–from K-12 education through entrepreneurship and venture capital. She co-leads the Kapor Center’s Equitable Tech Policy Initiative with a focus on inclusive technology policy with special interests in closing digital divide, scaling new tech workforce models, advocating for responsible emerging technology as well as providing foundational support across civic engagement issues and tech enablement of civic organizations.