New Report Shows Less Support for Black Nonprofits Since 2020 Racial Reckoning

The murder of George Floyd in 2020 sent shockwaves around the globe, prompting governments and companies alike to support Black-led movements, art and education. But almost six years after Floyd’s killing, new research shows the funding boosts promised to Black organizations fell short.

The new report is from Candid, a nonprofit research group, and Black philanthropy group Association of Black Foundation Executives (ABFE). According to their findings, Black-led nonprofits did see funding increases, but they were temporary and ended two years after Floyd’s death.

Nonprofit organizations in general have long reported financial struggles. Most recently, an annual review released by Independent Sector found 81 percent of organizations struggled to raise enough money to cover all of their expenses. Additionally, 36 percent of organizations ended their fiscal year in a deficit.

For Black-led nonprofits, financial struggles hit deeper after President Donald Trump signed a series of executive orders banning diversity, equity and inclusion (DEI) at the federal level last year. As Black Voters Matter co-founder Cliff Albright explained to The Associated Press, Black organizations continue to be hit by anti-DEI initiatives while trying to meet the demands of their communities.

“We’re literally being asked to do more with less resources,” Albright told the outlet. We previously told you that Black American households have been impacted by rising costs of healthcare and food. These persistent issues reached full volume recently, but Black nonprofits have been on the front lines before 2020.

Floyd’s death came after several high-profile killings of Black Americans and prompted global protests and outrage. What followed was a historic number of major corporations and institutions promising to right the wrongs of racial inequality.

That pledge to Black initiatives meant hope for many community leaders who finally felt seen.

“We started seeing this revenue and thinking we’re gaining really great relationships with funders,” Asiaha Butler, the CEO of the Resident Association of Greater Englewood, told AP News. “And, really, those priorities shifted quickly.”

In many cases, donations did not equal the start of ongoing relationships with outside donors. The report also found Black nonprofits are more likely to receive one-time donations than non-Black organizations that receive regular recurring donations.

“It was just a very transactional gift at best,” Butler added.

Now, ABFE and Candid are hoping the new report will open the eyes of future Black organizations and corporations. “They can either face the same barriers documented in this report, or they can inherit a philanthropic sector that more authentically and consistently values their contributions,” the report said. “This report is an invitation to foundations interested in supporting Black communities and Black-led nonprofits committed to their missions—to build lasting bridges together.”