New report details lack of support for Black-led nonprofits following 2020 racial justice movement

Report from Candid and ABFE reveals that increased funding for Black-led nonprofits in 2020 was short-lived

New York, NY, April 07, 2026 (GLOBE NEWSWIRE) -- Today, Candid and ABFE- A Philanthropic Partnership for Black Communities released From Transaction to Transformation: Three Ways Foundations Can Invest in Black-Led Nonprofits for Lasting Change, a new report examining trends in foundation funding for Black-led nonprofits between 2016 and 2023. The report outlines three ways philanthropy can move beyond short-term responses and toward sustained partnerships with Black-led organizations: increasing long-term, flexible funding, expanding access to philanthropic networks and decision-makers, and using institutional influence to challenge inequitable funding practices across the sector.

The findings reveal a consistent, challenging pattern: Black-led nonprofits, especially small organizations, are less likely to receive foundation funding, receive fewer sizable grants when they do, and are less likely to benefit from sustained funder relationships. The report further found that the broad financial commitments of 2020 to Black-led nonprofits led only to a temporary funding increase for large nonprofits. 

The report builds on findings from ABFE and Candid’s December 2025 report, Holding the Line, which documented how Black-led nonprofits are navigating growing pressure from funders and philanthropic institutions to soften or avoid race-explicit language in their work. 

“Black-led nonprofit leaders are being asked to meet rising community needs while navigating an increasingly hostile environment toward race-explicit work, often without the flexible, sustained funding needed to build staff, strengthen infrastructure, or plan for the long term,” said Susan Taylor Batten, President and Chief Executive Officer of ABFE. “This cycle of short-lived transactional investments keeps organizations doing the crucial work in communities in constant survival mode rather than scaling the solutions our communities need. At ABFE, we see this as a call to action to mobilize Black philanthropic resources and ensure investment in Black-led nonprofits is recognized as essential to equity and justice for all.”

Drawing on historical grants data from 2016–2023, survey responses from over 3,500 nonprofits, and interviews with Black nonprofit leaders and foundation representatives, the report provides a detailed view of financial and social support for Black-led nonprofits. 

Key findings from the report include: 

1. Black-led nonprofits are less likely to be funded, especially smaller Black-led nonprofits. Across eight years of data, only half of Black-led nonprofits, on average, received a foundation grant compared to 70% received by white-led nonprofits, and when they did, they received fewer awards. Small Black-led nonprofits were the most likely to receive no foundation funding at all.
2. Post-2020 private foundation grantmaking was uneven and temporary. Although more foundations began supporting Black-led nonprofits during the racial justice uprisings, most of the increased funding flowed to a small group of large organizations, nonprofits with over $1 million in expenses, between 2020 and 2022, followed by a decline in 2023. The majority of small Black-led nonprofits, organizations with under $1 million in expenses, saw little to no funding change.
3. Many funder relationships remain transactional rather than transformational. Black nonprofit leaders report persistent barriers to building long-term partnerships, including limited access to networks, little feedback on rejected proposals, and discriminatory double standards that undermine trust. Unlike other nonprofits, small Black-led nonprofits relied primarily on first-time funders for support.

“Despite their years of impact, many Black nonprofit leaders report struggling to form sustained partnerships with foundations,” said Ann Mei Chang, CEO at Candid. “There’s a misconception that Black-led nonprofits received a windfall of funding following the 2020 racial justice movement. Data like this enables us to demonstrate what is actually occurring in the funding landscape and spark a productive, sector-wide discourse on what Black-led nonprofits need from private foundations.”

The research represents one of the most comprehensive organization-level analyses of foundation funding for Black-led nonprofits to date, combining quantitative data with in-depth interviews to illuminate both trends and lived experience.

“Our longitudinal analysis of hundreds of thousands of grants demonstrates a continued lack of investment in Black-led nonprofits, not only in terms of dollars, but in terms of who gets their foot in the door when it comes to foundation funding.” said Cathleen Clerkin, Ph.D, Associate Vice President of Research at Candid. “By combining this with qualitative feedback from the leaders of these organizations, we’re able to see not just trends, but also the lived experience and impact of prolonged disinvestment.”

ABFE calls on philanthropy to move beyond short-term responses and take concrete action. This includes increasing general operating support, particularly for smaller organizations, revisiting grantmaking criteria and decision-making processes that produce racially disparate outcomes, and ensuring Black-led nonprofits have equitable access to philanthropic networks and funding pipelines.

To learn more and download the report, click here.

About Candid   
Candid is a 501(c)(3) nonprofit organization that provides the most comprehensive data and insights about the social sector. Every year, millions of nonprofits spend trillions of dollars around the world. Candid finds out where that money comes from, where it goes, and why it matters. Candid was formed in 2019 when GuideStar and Foundation Center merged. Candid combined GuideStar’s tools on nonprofits and Foundation Center’s tools on foundations with new resources to offer more comprehensive, real-time information about the social sector. Find out more at candid.org and on LinkedIn.

About ABFE
ABFE is a membership-based philanthropic organization that advocates for responsive and transformative investments in Black communities. Partnering with foundations, nonprofits and individuals, ABFE provides its members with professional development and technical assistance resources that further the philanthropic sector’s connection and responsiveness to issues of equity, diversity and inclusion. Established in 1971 as the Association of Black Foundation Executives, the organization was credited with many of philanthropy’s early gains in diversity. It has since evolved into an influential network. In 2013, the organization shed its descriptor and adopted the simpler ABFE (ab-fee) to better reflect its broadening membership. Find out more at abfe.org and on LinkedIn, Instagram, and Twitter.

Contact Info

Mary Steyer
mary.steyer@candid.org
+1 917-881-2162

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