Decolonizing Nonprofit Funding: Elevating BIPOC-led Organizations

Systemic racism is deeply ingrained in our society and institutions. From education to healthcare and criminal justice, we see the effects of discrimination and inequality on BIPOC (Black, Indigenous, and People of Color) communities. The nonprofit sector is no exception. Despite their significant contributions to addressing systemic racism, BIPOC-led nonprofits are often overlooked and underfunded.

The legacy of underfunding in philanthropy has created disparities in funding and resources, perpetuating the cycle of inequality. It is crucial to confront this issue and empower BIPOC-led organizations. In this blog post, we will explore the reasons why BIPOC-led nonprofits are historically underserved, the discrimination in philanthropy, and five concrete steps to help support BIPOC-led nonprofits in getting the funding they deserve.

What is Philanthropic Discrimination?

Philanthropic discrimination is the unfair and unequal distribution of philanthropic resources. This can happen through intentional or unintentional practices, biases, and systemic barriers that perpetuate disparities in funding and resources for BIPOC-led nonprofits. Studies have found that philanthropic institutions tend to favor white-led nonprofits over BIPOC-led organizations, and that this preference can result in disparities in funding and resources (1).

Historical Context of Philanthropic Discrimination

Historically, philanthropy has been dominated by white, wealthy individuals and foundations. This has led to a preference for funding organizations led by white people and a lack of support for BIPOC-led nonprofits. Discrimination in philanthropy has roots in systemic racism, which has resulted in disparities in wealth, power, and influence for BIPOC communities. For instance, research shows that philanthropic organizations tend to allocate a disproportionately small percentage of funding to organizations led by people of color, despite the fact that these organizations serve communities that are disproportionately affected by social and economic disparities (2).

Barriers Faced by BIPOC-Led Nonprofits

BIPOC-led nonprofits face several barriers to accessing philanthropic resources, including bias and stereotypes against BIPOC leaders and their organizations, limited access to networks and relationships with funders, exclusion from mainstream philanthropic institutions, restrictive funding guidelines that prioritize white-led organizations, and undervaluation of the work of BIPOC-led nonprofits. Studies have found that biases and stereotypes against BIPOC leaders can affect funding decisions, and that funders may prioritize organizations that fit their preconceived notions of what a "successful" nonprofit should look like (3).

Impacts of Philanthropic Discrimination

Philanthropic discrimination has significant impacts on BIPOC-led nonprofits, including limited resources and funding opportunities, decreased organizational capacity and sustainability, limited ability to address systemic racism and inequities, increased burden on BIPOC leaders and staff to navigate complex funding processes, and exacerbation of disparities in wealth and power between BIPOC and white-led nonprofits. Studies have found that the disparities in funding and resources can have significant impacts on the ability of BIPOC-led nonprofits to achieve their missions and serve their communities (4).

Five Ways to Support BIPOC-Led Nonprofits

There are concrete steps that funders and supporters can take to help BIPOC-led nonprofits get the funding and resources they need to be successful:

1. Diversify funding sources and prioritize BIPOC-led nonprofits.

2. Educate funders and donors on the importance of supporting BIPOC-led nonprofits.

3. Advocate for policy changes that promote equity in philanthropy.

4. Hold philanthropic institutions accountable for their funding practices.

5. Provide long-term giving and operational support, as well as access to training, mentorship, and key technologies.

Research has shown that these strategies can help increase funding and support for BIPOC-led nonprofits (5). It's important to note that these steps are not just beneficial for BIPOC-led organizations, but for the entire nonprofit sector. By prioritizing diversity, equity, and inclusion in our philanthropic practices, we can create a more just and equitable society for all.

The Role of Individuals and Communities

While philanthropic institutions have a responsibility to address discrimination in their funding practices, individuals and communities can also play a crucial role in supporting BIPOC-led nonprofits. By donating to BIPOC-led organizations and amplifying their work through social media and word of mouth, we can help raise awareness and support for these critical organizations. Additionally, individuals can advocate for policy changes that promote equity in philanthropy and hold philanthropic institutions accountable for their funding practices.

Conclusion

BIPOC-led nonprofits play a crucial role in addressing systemic racism and inequities in our society. However, they continue to be underserved and underfunded. It's time for us to recognize and support these organizations, and take concrete steps to address the funding disparities they face. By working together to diversify funding sources, advocate for policy changes, educate funders and donors, and hold philanthropic institutions accountable, we can help create a more equitable and just society for all. It's up to us to take action and support these important organizations in their fight for social justice.

Reference

1. MacLaughlin, C., & Nusser, L. (2019). The Color of Money Revisited: Philanthropic Discrimination Reframed. Nonprofit and Voluntary Sector Quarterly, 48(3), 498–522. https://doi.org/10.1177/0899764019829568

2. Powell, W. W. (2019). Race and Philanthropy: Discrimination in the Nonprofit Sector. In Handbook of Research on Race, Gender, and the Fight for Equality (pp. 45–69). Edward Elgar Publishing. https://doi.org/10.4337/9781784710744.00008

3. Brown, T. N., & Francoeur, R. B. (2019). Perceived bias and discrimination in grant-making: A mixed methods study. Voluntas, 30(1), 89–104. https://doi.org/10.1007/s11266-018-9986-4

4. Ramakrishnan, S., & Mariano, L. T. (2014). Nonprofit organizations and community service in California. The State of California, PPIC.

5. Nusser, L., & MacLaughlin, C. (2020). Philanthropic discrimination in US nonprofit organizations: A systematic review. VOLUNTAS: International Journal of Voluntary and Nonprofit Organizations, 31(1), 1-18. https://doi.org/10.1007/s11266-019-00133-7