New Data Shows Widespread Broken Funding Promises To Black Nonprofits After 2020 Racial Reckoning

In the wake of George Floyd’s murder in 2020, there was a surge of funding and support for Black-led initiatives across business, art, and education. But new research shows many of those promises were short-lived, with little meaningful impact for many Black nonprofits.

On April 7, nonprofit research group Candid and ABFE released data showing that support for Black-led organizations after 2020 was at best momentary, AP News reports. While some larger nonprofits saw brief funding boosts between 2020 and 2022, smaller groups saw little to no change. Those with annual expenses of $1 million or less received just over one-third of their funding from repeat supporters.

The pullback has left many organizations more vulnerable, especially as policies under President Donald Trump scaled back DEI initiatives, reduced funding streams, and created uncertainty around future grants.

“We’re literally being asked to do more with less resources,” said Black Voters Matter co-founder Cliff Albright.

Albright noted that many of these community nonprofits are now on the front lines, helping low-income families navigate rising healthcare costs and food prices. Yet small, Black-led organizations often rely on new donors rather than sustained funding, missing out on long-term partnerships that provide stability during tough times.

While philanthropy has shifted toward trust-based giving, offering flexible, multi-year support, ABFE CEO Susan Taylor Batten said Black-led nonprofits have largely been left out. The report found they have far fewer repeat funders than their non-Black peers, with only one-third receiving general operating support compared to more than half of other organizations.

Asiaha Butler, CEO of the Resident Association of Greater Englewood, co-founded the nonprofit over 15 years ago to help reshape her community’s narrative. While the organization once relied on a small group of steady supporters, 2020 brought a surge of more than two dozen new funders.

But Butler said that the sudden wave of interest quickly faded, turning what felt like an opportunity into a challenge as funding tapered off.

“We started seeing this revenue and thinking we’re gaining really great relationships with funders,” she said. “And, really, those priorities shifted quickly.”

Kia Croom, a fundraiser for Black-led nonprofits, said many of her clients saw record corporate giving in 2020—some even expanded staff to meet demand, only to face layoffs when funding dried up.

“It was just a very transactional gift at best,” she said.

Kandee Lewis, CEO of Positive Results Center in Los Angeles, shared a similar experience. While new donations were welcomed, many were one-time gifts rather than lasting partnerships. She said the support often felt tied to optics rather than to a true understanding of the organization’s work.

“We are still seeing remnants of bad practice when it comes to investing in Black communities,” Taylor Batten said. “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.”

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