Duster and Shiao 9711757 This dissertation examines how philanthropic foundations contributed to the development of racial and ethnic projects in the nonprofit sector from 1960 through 1990. The research proposes that the development of racial and ethnic concerns should be understood as a political process regularly channeled by philanthropic interventions. The independent contribution that foundations make to the nonprofit sector results from their relative autonomy from government and thri cohesiveness as a field of organizations. This research will first trace the history of foundation involvement in support of work concerned with race and ethnicity, then will examine the development of community foundation activities in two cities, Cleveland and San Francisco. ***