Black-led nonprofits didn't see funding boosts promised after 2020's racial reckoning
ABC News • • business
Key Points:
- Research by Candid and ABFE reveals that funding boosts for Black-led nonprofits following George Floyd's 2020 murder were mostly temporary, with smaller organizations seeing little to no increase.
- Many small Black-led nonprofits rely heavily on new funders rather than sustained relationships, making long-term financial stability difficult and forcing them to constantly seek new support.
- The Trump administration's policies reduced funding for diversity, equity, and inclusion initiatives, further straining Black-led nonprofits already facing increased community demands amid rising costs.
- Despite an overall philanthropic shift toward trust-based funding models, Black-led nonprofits receive fewer continuing funders and less general operating support compared to non-Black counterparts.
- Leaders of Black-led nonprofits report that initial surge in donations post-2020 often turned into one-time gifts without deeper engagement, leaving many projects underfunded and reliant on public grants.
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