Black nonprofits didn’t see lasting philanthropic commitments made after George Floyd’s murder

The racial justice funding wave that swept across America following George Floyd’s murder in 2020 has largely receded, leaving many Black-led nonprofit organizations struggling with diminished resources, according to new research released Tuesday by Candid and the Association of Black Foundation Executives (ABFE).

The analysis reveals that while some large Black-led nonprofits experienced temporary funding increases between 2020 and 2022, smaller organizations saw no significant financial gains. This pattern of disinvestment has left community groups particularly vulnerable as they face increasing demands for services amid economic challenges.

“We’re literally being asked to do more with less resources,” Cliff Albright, co-founder of Black Voters Matter, told The Associated Press. His organization is among many Black-led nonprofits now helping low-income families cope with rising healthcare costs and food prices despite their own funding constraints.

The research highlights a troubling trend: small Black-led nonprofits, those with annual expenses of $1 million or less, received just over one-third of their funding from continuing supporters. This lack of sustained backing has hampered their ability to build organizational capacity and pursue long-term goals.

Asiaha Butler, CEO of the Resident Association of Greater Englewood on Chicago’s South Side, experienced this phenomenon firsthand. Her organization, serving one of Chicago’s most impoverished neighborhoods, operated with a handful of consistent supporters for years. Then summer 2020 arrived, bringing more than two dozen new funders.

“All of a sudden, we were desirable for people to fund,” Butler recalled. However, this funding “spurt” quickly became a “curse” as the initial capital infusion tapered off. “We started seeing this revenue and thinking we’re gaining really great relationships with funders. And, really, those priorities shifted quickly.”

The research points to a fundamental disconnect between Black-led organizations and institutional funders. ABFE CEO Susan Taylor Batten noted that foundations lacked relationships with Black organizations of any scale prior to 2020, creating a scramble when protestors demanded businesses and philanthropies address systemic racism.

Kia Croom, whose fundraising firm works with nonprofits in Black communities, observed that her clients received unprecedented corporate funding during this period. Some even expanded their development staff to manage the influx—only to face layoffs when the funds disappeared.

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

The problem extends beyond mere funding amounts to the nature of the support provided. Kandee Lewis, CEO of Positive Results Center in Los Angeles, noted that while her organization received checks from new supporters, these were typically one-time donations rather than the beginning of meaningful relationships. Lewis felt funders were motivated by her organization’s Black leadership rather than a genuine understanding of its work.

“They were so busy trying to figure out who was who that they didn’t really take time to get to know people,” she said.

For smaller organizations, breaking into philanthropic networks presents a major hurdle. Jaleesa Hall, who heads Raising A Village Foundation in Washington, D.C., found that her limited connections to high-net-worth individuals made it difficult to attract foundation funding.

“Small, Black-led nonprofits simply aren’t in those rooms to begin with,” Hall explained.

The report confirms her experience: most foundation grant dollars to small Black-led nonprofits came from first-time funders rather than continuing supporters, creating what Cathleen Clerkin, associate vice president of research at Candid, described as a perpetual cycle of “first dates” with potential funders.

“They’re just constantly going on first dates with new funders and hoping that somebody will invest in them and understand them,” Clerkin said.

Small nonprofit leaders often lack the time or resources to attend networking opportunities or national conferences where connections with funders might be established. T’Pring Westbrook, a nonresident fellow at the Urban Institute’s Center on Nonprofits and Philanthropy, pointed to the problem of “trend funding” among foundations.

“Maybe during Black History Month there will be a funding campaign,” she said. “But the thing about a campaign is a campaign doesn’t build sustainability.”

Black-led organizations also face structural barriers in philanthropic practices. Many struggle with grant eligibility requirements and reporting demands that strain their limited staff. “It ends up feeling like a burden,” Hall explained. “The juice isn’t worth the squeeze.”

While the philanthropy sector has begun embracing trust-based models offering general operating support and multi-year grants, Black-led nonprofits have largely been left out of this evolution. The report showed only one-third received general operating support, compared to just over half of non-Black counterparts.

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

For Butler in Chicago, the funding downturn has delayed a nearly $7 million capital project aimed at building economic justice through a Black business district in Englewood. She described the search for additional funding as “pulling teeth” after initially securing a $1 million grant. With philanthropic partners withholding support, she’s turned to public funding, securing a $2.5 million grant from the City of Chicago and awaiting a pending $1.5 million state award.

“Things shifted,” Butler reflected, “and so we didn’t want to start soliciting for a capital campaign. The timing was off.”