The Twenty-First Century Foundation was founded in 1971 by economist Robert S. Browne as an offshoot of the Black Economic Research Center (BERC), which he also established. A center of applied research, BERC had as one of its goals to originate alternative strategies which could improve the economic conditions of black America. Towards that end, Browne sought funding for a foundation that would be entirely under black direction and would fund grassroots minority projects working to bring about community change primarily through economic and community development or by formulating innovative approaches to the education of African-American youth.

As one of only two black endowed foundations at the time of its formation, the Twenty-First Century Foundation was conceived as an innovative attempt to redress the black absence from the foundation world. This effort would be in contrast to philanthropy that was channeled to blacks but came from white foundations and churches whose commitment to the welfare of black people was only one among many causes they funded. Browne believed that with the establishment of the Twenty-First Century Foundation, inroads could be made to break the dependency on white philanthropy based on the premise that the black community is better able to find solutions to its problems.

Initially funded by Carol Bernstein Ferry with a $1 million endowment, the Foundation awards small grants of between $3,000-$5,000. Between 1971 and 1992 the Foundation distributed more than two hundred grants totalling greater than $1.2 million. Included among the funded projects are tutorial programs, leadership development workshops, and technical training courses. Most of the organizations which initially received grants were located in the South. Beginning in the mid-1970's however, in order to facilitate the administration of the grants more effectively, many awardees have been located in the North where the majority of the board of directors reside.

The direction of the Foundation and decision-making regarding the selection of grant awardees have been the domain of its board of directors. Among the original board members were: Browne (President); Jewel Plummer Cobb (Vice President); Daniel B. Mitchell (Secretary); Robert Curvin (Treasurer); Julian Bond and Joyce A. Ladner. Browne also served as director until March 1980, when E. Tamu Bess assumed the executive directorship until 1981 at which time Roberta Yancy held the position from 1981-1984.

Uniquely situated as a foundation with a secure but small source of capital, Browne and the board set on a course to raise a $10 million capital fund in order to operate a truly viable and effective program. They established the position of director of development to fund raise the required capital. The position was subsequently held by Judith G. Brabham (1973) and Ralph G. Bryd (1975-1977). Various fund raising strategies were undertaken, including corporate solicitations and special fund raising events such as a basketball tournament and an awards dinner. The dinner, known as the Achievement Award Dinner, was held June 1977 and was given to recognize black individuals who had achieved directorship positions within the decision-making and policy setting bodies of the nation's major corporations. The three awardees at the first and only awards dinner were: Judge Samuel R. Pierce, Jr.; Ernesta Procope; and William Kennedy. Despite these and other efforts, however, the Foundation never raised sufficient capital funds, and in some instances, lost money.

In addition to its grant making functions, the Foundation also administered two other program elements: the Program Related Investments and the Clarence L. Holte Prize. The investments program was a short lived venture to invest in black businesses. These investments absorbed about 25% of the capital fund. By the mid-1970's monies had been placed principally in four ventures -- a manufacturing plant in Mississippi, a real estate venture in Georgia, a housing construction concern in Louisiana, and a projected oil company in Washington, D.C.

The second major program administered by the Twenty-First Century Foundation was the Clarence L. Holte Prize, awarded biennially in recognition of a significant contribution by a living writer to the cultural heritage of Africa and the African diaspora as disseminated through published writings in the humanities. It was created in 1977 to heighten public awareness of outstanding works emanating from this heritage, and carries with it a cash award. The prize is named in honor of Clarence L. Holte, foremost contemporary collector of books about the African diaspora, as well as a writer and editor for National Scene, who donated $50,000, the income from which provided the prize money. The award was conceived and initiated by Cliff Lashley, scholar, book collector and former Jamaican diplomat.

The prize has been presented to the following scholars:

In 1984 Holte removed the administration of the prize from the Twenty-First Century Foundation due to his perception of the Foundation's financial instability. For the next four years, the Schomburg Center for Research in Black Culture in conjunction with the Phelps-Stokes Fund administered the prize.

The Foundation continues its grant making responsibility in the areas of economic development and education. Robert Browne, the founder and board president, however has become less active with the Foundation since 1980.