A new study reveals that the surge in funding for Black-led nonprofits following the racial justice movement of 2020 was often short-lived, creating new challenges for these organizations.
The news report delves into the evolving landscape of funding for Black-led nonprofits, particularly in the aftermath of the racial justice movement of 2020. The research, conducted by Candid and ABFE, reveals a complex picture of temporary funding increases for some organizations, while smaller entities saw little to no significant change.
This research highlights the challenges faced by these organizations in navigating the shifts in funding priorities and maintaining long-term sustainability. The sudden influx of capital during 2020, while initially welcomed, often proved to be short-lived, with the rapid tapering off of funds leaving many organizations struggling to maintain their operations and programs.\The findings underscore the importance of fostering enduring relationships with funders and the need for a more sustainable approach to supporting Black-led nonprofits. The report emphasizes how smaller organizations, lacking established connections, were often reliant on new funders, leading to a loss of transformational relationships crucial for long-term goals and resilience during challenging times. Many of these community nonprofits are now tasked with helping more and more low-income families deal with struggles. As the demand for their services grew, these organizations often found themselves with fewer resources, forced to do more with less. The report also highlights the impact of the administration's actions, including threats to social service programs, uncertain future grants due to staffing cuts, and a chilling effect on racial justice funding. This complex situation is one that leaders, such as Asiaha Butler, the CEO of the Resident Association of Greater Englewood, have had to learn to navigate, with an influx of funders that ultimately became a curse. Foundation lacked relationships with Black organizations of any scale prior to 2020, according to ABFE CEO Susan Taylor Batten. Black philanthropy professionals say that distance created a scramble when protestors demanded businesses and philanthropies address systemic racism. Kia Croom, whose fundraising firm works with nonprofits in Black communities, said her clients received more funding than ever from corporations. Some hired additional development staff to meet the demand — and then underwent layoffs when funds disappeared.\The analysis also points to the broader context of systemic racism and the historic underfunding of Black-led organizations. These organizations often lacked pre-existing relationships with major foundations, resulting in a scramble when businesses and philanthropies were pressured to address systemic racism. The focus of the report is on how the funding shift influenced the nonprofits. Fundraising executives were hired to take care of the influx of money, but many were then laid off as funds dried up. As the report indicates, a more thoughtful and sustainable approach to philanthropy is needed to ensure the long-term viability and impact of Black-led nonprofits. This includes prioritizing the development of strong, lasting relationships between organizations and funders and supporting the establishment of consistent funding streams that can withstand economic fluctuations and shifts in political priorities. The objective is to secure the impact of positive outcomes and support the communities they serve. Positive Results Center CEO Kandee Lewis oversees a Los Angeles nonprofit assisting survivors of domestic violence and other harms. It was wonderful, she said, to receive checks from new supporters
Black-Led Nonprofits Funding Racial Justice Philanthropy Social Issues
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