The Money Fade: Money Gone

We review and discuss the article by James Pollard in the Chronicle of Philanthropy titled Black-Led Nonprofits Didn’t See Lasting Funding Boosts After 2020. 

Transcript

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Let's go. Welcome to another episode of Philanthropy in the Black. I am your host, Delly Sell. We're about to get right into the proceedings this evening. Talking about how to help nonprofits stay in the black financially, socially, and of course morally. Let's go. So I recently just read this phenomenal article in the Chronicle of Philanthropy, Philanthropy by James Pullard. It was on spot. It's the title of it, look it up, or I'll drop the link uh here somewhere. Black led nonprofits didn't last, didn't see lasting funding boost after 2020. No, wait a minute. Let me introduce the swear jar. Okay, listen. Yeah, there's a purple and gold bag. If you know, you know. But anytime I should lose my intellectual ability to maintain professional decorum and uh language, I shall drop 100 bones in the swear jar per swear word and donate it at the end of the month to a worthy nonprofit. Let's talk about it. So there you go. That's the swear jar. So let's get back into it. So you know, in this article goes into the unfortunate events after George Floyd's murder. That's what it was. Let's be clear. RIP to George Floyd. And so 2020, everything changed. Nonprofits received so much support and love. And it was as if the community at large was saying, We see you, we hear you, we're investing in black communities. The money was flowing, making it rain. Statements were made, promises were loud. But now in 2026, we're asking one question: where did the money go? This is an example of an audio example, if you will, of what that felt like for nonprofits. We went from this. You is kind, you is smart, you is important. Absolutely. You is kind, you is smart. We went from that to 2026. It went to this. Look at you. You're black, you're poor, you're ugly, you're a woman, you're nothing at all. That's what it felt like. Shout out to my funders doing the right work, but that's what it felt like. You is kind in 2020, you is smart, you're important to 2026. You're black and you're ugly. Now, listen, and that goes for a lot of nonprofits, not just black, but the idea of the political climate having something to do with it, not establishing real relationships. But here on this podcast, we're not just gonna complain, we're gonna just walk through and then get to ways we can fix this. So, again, in 2020, read the article, shout out to Candid and ABFIE. I'm sorry, ABFE. Um, corporations were pledging money, y'all. Like I said, it was making it rain. Foundations talked about reimagining what philanthropy was. That's always cute. Everybody suddenly wanted to fund black-led organizations. Be clear, black-led organizations, but according to this new research, the momentum didn't last. The mo the funding dump happened between 2020 and 2022, and then it was gone. That's why we're calling this money gone. They showed up, they showed out, and then they pulled out, and that's just my words. Here's where it gets wild, y'all. Our our large black-led nonprofits, they saw a temporary boost, right? You get that infusion. Small black-led nonprofits saw no real change, and that's according to the article. Like I said, it was absolutely awesome. And so let me tell you how that resonates in a real-world way. After Katrina 2005, many individuals, let alone businesses, foundations, the city, government, everybody got some kind of support. But individuals specifically received uh through being evacuated to different cities and states, they received housing, cars, money, clothing, love. It was beautiful, but was it sustain sustainable? I've in my own personal circle, I know several folks who just ended up right back on their butt, right? Like that that infusion was great, the love was great. But if you're not prepared to receive those kind of blessings in your life, how do you make those things sustainable? So that's kind of how I look at what happened in the nonprofit sector in 2020 to where we are the 2026. But let me get back into it, stay focused. Grassroots organizations, the ones closest to the community, barely saw a difference. And here's the kicker many of them had to rely on new donors instead of returning donors. In this work, we know that acquiring a new donor is exhaustive, expensive, hit or miss. Your returning consistent donors, they're usually your bread and butter. It means a lot to have someone who sees you year after year and not just on a first date, right? But with new donors, here's where it hurt the sector. There were no long-term relationships founded, no stability, and no sustainability, just vibes. Oh, we was out here feeling good. Ah, I donated, you got money, one-time check. That's trash, that's absolute trash. But let me keep going. It was performative, and and okay, you know, that was transactional, not transformational. It was a moment, it was a trend, it was a PR cycle, it was a response to tre to pressure. And when the headlines faded, the money did too. When it was no longer PR worthy, uh board annual board report worthy, the money left. And what that left nonprofits was underfunded, overworked, and stuck in survival mode. And that is just unfathomable for grassroots organizations or any organization doing real work. But let's get deeper here. This is nothing new, it's kind of a structural thing in our sector, and here's what the data and leaders keep telling us relationships are is greater than money. Relationships equal money, but there were foundations then and some today that didn't have real relationships with black-led organizations before 2020. So when the pressure hit, pressure hit, they scrambled. When the pressure left, they was out of there. They didn't work to have sustainability, sustainable relationships. And this is an equal um diagnosis. It's not just one side, but let's be clear. That that trend-based funding of Black History Month, crisis funding, moment funding, you know, that's not mission funding. Like giving somebody, you know, it's the whole saying teach a man a fish versus giving in them a fish, right? So that's kind of the analogy that comes to mind. But a structural bias. Black-led nonprofits profits are less likely to receive grants, receive smaller amounts, and have fewer long-term funders. That's not coincidence, that's a system. That's not coincidence, that's a system. But again, we're not here to complain. We're just the article was just spot on. But let's talk about some remedies for funders and grantees and just the nonprofit sector. Let's go with what I feel is number one. Stop giving one-time checks. Just two, three, three, five-year funding commitments make a difference, and please stop micromanaging restricted dollars. If you've ever so some nonprofits need to be able to maneuver and do so legally, honoring the dollars that were sent for a specific thing, but it is very hard to work with a one-time gift and make long-term impact. Let's be clear on that. So I think the option is to fund infrastructure, not just programs, right? Fund infrastructure. Here we go. General operating support, trust nonprofits to do their job. Man, if I have to do a report every week on every penny and body, I assist it. Another thing we can do to fix this relationship-based fundraising, not just first date every year. 50 first dates. No, build real relationships, show up for one another as a partnership, as opposed to we donated this money to this organization, we're great. We can't do that. Another thing, put black-led nonprofits in the room. Listen, if you have board members or even foundations who support, invite us to the dance. And I'm talking about the board meetings, the networks, the decision-making place places, not just funding tables, but power tables. Don't just invite me to the funding table, invite me to the power tables, because that's where I begin to create real impact for my organization. Lastly, I'll say is accountability. If you made donations in 2020, I'm sorry, pledges, a promise to donate. Where are you in 2026? Because you know what? These nonprofits in our communities still dealing with rising costs, housing instability, food insecurity, and guess who's still doing the work? Black-led organizations, still tend toes down behind making sure the community is better. So here's the truth as I close. Black-led nonprofits didn't fail. Love the article, philanthropy did. Because you can't say something matters and then stop helping the organization serving the lives. You can't be in and out. If you're gonna date me, date me with a purpose, amen. We're trying to get married around these pieces, all right. We're not trying to do a one-night stand, and I didn't cuss. All right, so this episode is really just about awareness, it's about accountability, it's about doing better. So, again, if you're a funder, fund for the long term. If you're a nonprofit leader, build relationships, not just revenue. And if you are listening to this podcast or watching it, ask questions, follow the money, support organizations doing the real work. That is all the time I have for you. I hope you learned something new. I hope you enjoyed what I had to say. We out here absolutely trying to make sure our nonprofit sector stays in the black financially, morally, socially. Until next time. Keep it well and keep it game, but keep the hell out of the money, but we am out.