"Faced with legislation that would require them to disclose their ethnic composition and detail grants awarded to minority organizations, 10 of California’s largest foundations agreed Monday to a multimillion-dollar, multiyear investment in minority communities. In return, Assemblyman Joe Coto, D-San Jose, dropped a bill that opponents said was an effort to impose racial diversity on charities and threatened to drive donors out of California. Many foundations enjoy tax-exempt status. But according to a 2006 study by the Berkeley-based Greenlining Institute, which sponsored Coto’s legislation, only 3.6 percent of grant dollars from the nation’s top 24 private foundations went to minority-led organizations."