Black-Led Nonprofits Didn’t See the Lasting Funding Boosts Promised After 2020’s Racial Reckoning

April 10, 2026

Research released by nonprofit service Candid and philanthropy group ABFE reveals that funding increases for Black-led nonprofits following George Floyd's 2020 murder proved temporary and inequitable. Large Black-led organizations experienced only short-term funding boosts between 2020 and 2022, while smaller groups saw no meaningful change at all. These nonprofits struggle with predominantly one-time, transactional donations from new funders rather than sustained partnerships, forcing them to constantly seek new supporters instead of building transformational long-term relationships.

Who is affected

Black-led nonprofit organizations, particularly small organizations with annual expenses of $1 million or less
Cliff Albright and Black Voters Matter
Asiaha Butler and the Resident Association of Greater Englewood (South Side Chicago)
Kandee Lewis and Positive Results Center (Los Angeles domestic violence support)
Jaleesa Hall and Raising A Village Foundation (Washington, D.C. educational equity)
Low-income families dealing with rising healthcare costs and food prices
Predominantly Black neighborhoods and communities served by these organizations
Historically Black colleges and universities

What action is being taken

Black-led nonprofits are relying on new funders rather than continuing supporters for funding
Small nonprofit leaders are focused on day-to-day upkeep and financial viability
Organizations are constantly seeking new funders and submitting to required weekly or monthly progress reports
Asiaha Butler is turning to public funding sources, having received a $2.5 million grant from the City of Chicago
The Trump administration is curtailing funding for diversity, equity and inclusion programs and cutting agency staff

Why it matters

This matters because Black-led nonprofits provide critical services to underserved communities during a time of increasing need, yet they face systemic barriers to sustainable funding. The transactional, trend-based approach to funding these organizations prevents them from building long-term capacity and achieving their missions effectively. Without sustained investment and trust-based funding models that include general operating support and multi-year grants, these organizations cannot adequately serve communities facing economic hardship, and the racial wealth gap continues to widen. The pattern reveals that philanthropic responses to racial justice movements were superficial rather than transformational, leaving community organizations vulnerable to policy changes and economic pressures.

What's next

Asiaha Butler is awaiting a $1.5 million state award (pending) for her capital project in Chicago's Englewood neighborhood to build an 8,800-square-foot building with a restaurant, Black-owned business space, and workforce development training facilities.

Read full article from source: The San Diego Voice & Viewpoint