Full Breakdown
Funding Challenges for Black-led Nonprofits Post-George Floyd
4/8/2026, 3:21:43 PM
Overview of the Funding Landscape
Following the racial reckoning ignited by George Floyd's murder in 2020, there was a surge of financial support for Black-led nonprofits, with many large donors pledging to address systemic inequities. However, recent research from nonprofit research service Candid and the Black philanthropy group ABFE indicates that these funding increases were often temporary and did not benefit smaller organizations significantly. Many Black-led nonprofits continue to face challenges in securing sustainable funding, exacerbated by the policies of the Trump administration that curtailed diversity, equity, and inclusion initiatives.
The Impact of Temporary Funding Increases
The analysis revealed that while some larger Black-led nonprofits experienced a brief uptick in funding between 2020 and 2022, smaller organizations saw little to no change. Asiaha Butler, co-founder of the Resident Association of Greater Englewood in Chicago, noted that the influx of new funders during the summer of 2020 quickly dissipated, leaving her organization with unstable financial support. “We started seeing this revenue and thinking we’re gaining really great relationships with funders,” Butler explained, but the reality was that priorities shifted rapidly.
Barriers to Sustainable Support
Experts highlight that many foundations lacked established relationships with Black organizations before 2020, leading to a scramble for funding when public demand for action against systemic racism surged. Kia Croom, a fundraising consultant, noted that while her clients received unprecedented funding, it often came in the form of one-time donations rather than ongoing support. This transactional nature of funding has left many nonprofits struggling to build lasting relationships with donors.
The Challenge of Limited Networks
The lack of access to influential networks further complicates the funding landscape for small Black-led nonprofits. Jaleesa Hall, head of the Raising A Village Foundation, emphasized that these organizations often do not have the connections needed to attract foundation support. “Small, Black-led nonprofits simply aren’t in those rooms to begin with,” Hall stated, highlighting the systemic barriers that persist.
Criticism of Philanthropic Practices
Despite a sector-wide shift towards trust-based funding models that prioritize general operating support, Black-led nonprofits have not seen the same benefits as their non-Black counterparts. Only one-third of Black-led organizations received general operating support, compared to over half of other nonprofits. Susan Taylor Batten, CEO of ABFE, criticized the ongoing reliance on outdated funding practices, stating, “There’s just no way for a foundation to move its mission for communities in this country, let alone Black nonprofits to move theirs, if we do not evolve this sector.”
Future Prospects and Funding Strategies
As funding from traditional philanthropic partners wanes, organizations like Butler's are turning to public funding sources. Butler has secured a $1 million grant for a capital project aimed at bolstering economic justice in her community, but she described the search for additional funding as akin to “pulling teeth.” The City of Chicago has provided a $2.5 million grant, with another $1.5 million state award pending, indicating a potential shift towards more stable funding avenues.
Verbatim Quotes
- “We’re literally being asked to do more with less resources,” — Cliff Albright, Co-founder of Black Voters Matter
- “It was just a very transactional gift at best,” — Kia Croom, Fundraising Consultant
- “The juice isn’t worth the squeeze.” — Jaleesa Hall, Head of Raising A Village Foundation
- “There’s just no way for a foundation to move its mission for communities in this country, let alone Black nonprofits to move theirs, if we do not evolve this sector.” — Susan Taylor Batten, CEO of ABFE
The ongoing challenges faced by Black-led nonprofits underscore the need for a reevaluation of funding practices to ensure sustainable support for these critical community organizations.
