A Look Into Black Funding Denied

During the "racial reckoning" of 2020, the world stood tall pledging nearly 500 billion dollars to support black-led and serving organizations and businesses in the name of racial justice and equity. Yet very few organizations have received that funding and one of the biggest perpetrators of this verbal pledge was philanthropy.

Nonprofit organizations led by people of color, particularly black-led nonprofits, have long experienced significant disparities in funding compared to their white counterparts. The National Committee for Responsive Philanthropy's (NCRP) recent report, 2023 Black Funding Denied: Community Foundation Support for Black Communities sheds light on the persistent underfunding of black-led nonprofits by community foundations.

According to the report, community foundations' funding for black-led nonprofits is disproportionately low, with only 7% of their grant dollars going to organizations led by black people. This underfunding is particularly striking given that black people make up 13% of the US population and face significant disparities in income, education, health, and other areas.

The report highlights several factors that contribute to this funding disparity, including unconscious bias, lack of representation of people of color in leadership positions at community foundations, and a focus on short-term outcomes rather than long-term systemic change.

The consequences of this underfunding are significant. Black-led nonprofits are often required to operate with limited resources, which can hinder their ability to serve their communities effectively. They may struggle to hire staff, invest in infrastructure, or develop long-term strategies to address systemic challenges.

Nonprofits led by people of color are often the only organizations working on critical issues affecting their communities, such as racial justice, economic empowerment, and healthcare access. Without adequate resources, these organizations cannot effectively address the root causes of these issues, perpetuating the disparities they seek to eliminate.

To address this funding disparity, community foundations must take intentional steps to support and fund black-led nonprofits including increasing the representation of people of color on their boards and staff, providing long-term funding, addressing unconscious bias in their grant-making processes, and investing in and supporting organizations led by people of color.

Make no mistake, the underfunding of black-led nonprofits perpetuates systemic racism and inequality that requires a collective effort to address. It is time for all of us to take action and create a more equitable funding landscape, where all organizations have the same opportunities to thrive and succeed.