Nonprofits led by and serving people of color are essential to just and equitable communities. In a country where racism reveals itself in inequitable health outcomes, the impact of climate change, home valuations, inequitable funding systems, access to capital, and more, the work of these organizations is vital. But those of us who work with them are seeing a worrying trend.
After donors made significant commitments to racial equity and boosted funding in 2020 and 2021 in the wake of the murders of George Floyd and Breonna Taylor, support has dropped. Nonprofits that invested in people, programs, and their foundational financial well-being aren’t seeing the ongoing philanthropic support needed to make visions of expanded missions and impact a reality.
At the same time, racial wealth and health gaps persist. Community-based nonprofits are trusted and critical providers of social services; demand doesn’t pull back when funding does.
Donor retrenchment is well documented, with foundations reverting to smaller grants, not renewing grants to organizations they supported in the early 2020s, or moving away from a focus on racial justice.
Leaders of nonprofits serving people of color are facing urgent needs and less support. These leaders — lots of whom are Black women — went from being ignored by many in mainstream philanthropy, to being celebrated, to having unreasonable expectations placed upon them, and then having support pulled.
The attention paid in the recent past to BIPOC-led nonprofits — particularly those focused on racial-justice — was heartening, and the current erosion of support is not inevitable. Foundations invested in equity can take action to preserve progress and speed racial justice by following these five “Rs”:
Reject retrenchment: Honor commitments and provide long-term support.
There is a vital need to commit or recommit to investing in BIPOC-led nonprofits, especially those engaged in racial-justice work. While large, one-time gifts — like those often made when racial disparities make the news — can be transformative, stability is also critical to long-term success. Funders said they would be there for these nonprofits, and now need to provide the sustaining support that is most useful to their missions.
We must make room for thinking about what assets, beyond money, foundations can bring to bear on behalf of racial-justice nonprofits in this moment.
Reassess resources: “Trust-based” doesn’t necessarily mean writing a check and walking away.
Some philanthropists, acting with good intentions, might abstain from offering deep partnership or counsel for fear of overstepping. That’s a good fear to have, and power dynamics demand close attention. But we must make room for thinking about what assets, beyond money, foundations can bring to bear on behalf of racial-justice nonprofits in this moment. Funders: provide connections, networks, access, opportunities, insight, research, and other resources in addition to grants. Just make sure to follow the lead of grantees instead of determining what is useful and imposing expectations.
Raise your voice: Seek input from grantees on the causes most important to them and advocate accordingly.
Support advocacy efforts that attack racial injustice in government and political realms. Use your platforms to elevate the voices of nonprofit partners and amplify their issues and concerns. Be a champion for change in the sector by helping clear the path for nonprofits to advance racial equity.
Be a champion for change in the sector by helping clear the path for nonprofits to advance racial equity.
React to current needs: Provide investments in training and infrastructure to strengthen BIPOC-led nonprofits for the long term.
This could include providing access to consultants and specialized training, and supporting business and scenario planning to help grantees understand how different funding realities could impact organizational health and program delivery.
Recalculate grant agreements: Invest in the well-being of nonprofit workers.
By supporting the full, true costs of nonprofit program delivery and organizational well-being, grant makers help ensure that organizations can pay their workers, reliably deliver critical services, have time for innovation and collaboration, and achieve the outcomes everyone wants to see. Multiyear funding is key to giving nonprofits the security they need to attract and retain fairly paid staff and deliver high-impact programs.
Nonprofits need their advocates in philanthropy to step back and help realize a collective vision for a robust movement that is stable enough to weather funding trends and legislative attacks. It is time for a renewed commitment and new approaches to supporting nonprofits holding our country accountable to its ideals of equity and racial justice.
