Black-led nonprofits didn’t see the lasting funding boosts promised after 2020’s racial reckoning

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James Pollard, Associated Press

NEW YORK (AP) — The racial reckoning that followed George Floyd ‘s murder in 2020 carried hopes of new support for disproportionately underfunded, Black-led nonprofits. American companies stepped up donations to historically Black colleges and universities. Major climate funders pledged to give more toward minority groups. Large donors sought to narrow the racial wealth gap.

But new research released Tuesday shows that such financial gains for many Black-led nonprofits were short-lived, if they happened at all. A subset of large, Black-led nonprofits saw only temporary funding increases between 2020 and 2022, according to the analysis by nonprofit research service Candid and Black philanthropy group ABFE. Smaller organizations saw no significant change.

The pattern of disinvestment put many community groups at a greater disadvantage when President Donald Trump’s policies curtailed funding for diversity, equity and inclusion. The nonprofit sector’s struggles deepened as the administration threatened a range of social service programs, left future grants uncertain by cutting agency staff and chilled racial justice funding through anti-DEI executive orders.

Black Voters Matter co-founder Cliff Albright noted these community nonprofits are the same ones now tasked with helping more and more low-income families deal with spiking healthcare costs and rising food prices.

Learn how they have to do more with less.

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