Black History Month and Some Tough Truths About the Nonprofit Sector

By Zack Travers, CFRE, YNPN-NYC Board Chair

Black History Month provides a timely reminder and opportunity for young nonprofit professionals to do two things. First, we must face some of the hard truths about systems in our society which silence Black voices and normalize Black suffering - the nonprofit sector is not exempt from these interrogations. But, we must also celebrate the contributions from the Black community and individuals which have made the nonprofit sector what it is today. These things should be done all year-round, but February offers a timely opportunity and reminder. 

Many experts and thought leaders in the nonprofit space have called out the nonprofit sector's complicity in white supremacy for years, including Vu Le, and Anastasia Reesa Tomkin with Nonprofit Quarterly.

As the next generation of nonprofit leaders, we must question these hard truths with the goal of creating a more just and equitable society, not just by the time we're running things, but RIGHT NOW.


Tough Truth #1: The nonprofit sector benefits from BIPOC individuals' labor and innovation, but does not compensate BIPOC workers accordingly. 

The nonprofit sector would be nowhere near as large or powerful as it is today without the contributions of BIPOC staff, leaders, donors, and volunteers. However, much of the work that has gotten our sector to where it is has been done, often unpaid, by BIPOC individuals, especially women. In an article from the Washington Post, Monica Gray, Executive Director of the National Capital Area YWCA in Washington, D.C. says charity work "was work that women, and particularly Black women, had always done, and unfortunately, we did it for free. There is this idea that we should do the work for the ‘right reasons’ and not expect compensation.” There is currently no aggregated data on compensation for the nonprofit sector specifically, but as the nation's third-largest employer it's safe to assume the trends follow the national numbers, which have Black women earning 64 cents for every dollar a white man makes, according to the Center for American Progress. 

Tough Truth #2: The non-profit sector silences BIPOC voices and excludes them from decision-making. 

"Overall, just 1 in 5 nonprofit chief executives or executive directors is a person of color, according to Bridgespan, a nonprofit consultant group," states Sydney Trent in an article from the Washington Post. As Kara Kyles puts it in an article from Candid's Philanthropy News Digest, "People of color, particularly those from Black and Latine communities, are locked out of desired careers by a toxic mix of systemic racism and bias... (it is) a pervasive issue for nonprofit organizations, even though social good and positive impact is at the very center of our missions." Kyles goes on to state that BIPOC individuals often have a harder time climbing the proverbial ladder than their white peers, because from the very beginning they are less able to "pay their dues" by accepting low-paying or unpaid positions due to a lower likelihood of possessing generational wealth. In an analysis of their 2019 study, Race to Lead, the Building Movement Project stated that "people of color are less likely to receive raises, promotions, and bonuses compared to their white counterparts."

Tough Truth #3: BIPOC-led organizations are systematically under-funded, and are asked to do more with less. 

There may be no better recent illustrator of this disparity than the COVID-19 pandemic. According to the Nonprofit Finance Fund's 2022 State of the Sector Survey, 81% of BIPOC-led nonprofits saw an increase in demand for their services in the height of the pandemic, compared to 67% of white-led organizations. When looking at a significant increase (10% or more), the disparity increases to 64% of BIPOC-led orgs and 47% of white-led orgs. The problem is that this increase in need is not accompanied by an increase in funding. Analysis from the same survey goes on to state some harrowing facts about these funding disparities:

  • "41% of white-led nonprofits received 50% or more unrestricted funds in FY2021 as compared to 26% of BIPOC-led organizations." 

  • "66% of white-led organizations ended FY2021 with a surplus... 49% percent of Black-led organizations ended FY2021 with a surplus."

  • "White-led nonprofits were also more likely to receive corporate donations in 2021—71% vs 58% for BIPOC-led nonprofits.

  • “(White-led organizations) were also more likely to have revenue from

    • sales (23% for white-led organizations; 11% for BIPOC-led organizations)

    • the federal government, excluding PPP (46% of white-led organizations; 32% of BIPOC-led organizations)

    • investment income (33% white-led vs 16% BIPOC-led)."

Tough Truth #4: White-led organizations are still not doing the work. 

According to the Nonprofit Finance Fund's 2022 State of the Sector Survey, "BIPOC-led organizations were more likely than white-led organizations to take public action about racial equity: for instance, 59% of BIPOC-led organizations publicly advocated for policies to advance racial equity in the communities they serve, compared to 41% of white-led organizations." And it's not just about words and advocacy, either. The Nonprofit Finance Fund states that "64% of BIPOC led organizations developed, improved and/or expanded services to Black, Indigenous, or other people of color, as compared to 52% of white-led organizations."

Black contributions to the nonprofit sector should be celebrated, now more than ever.

In the face of these hard truths, it is important to recognize that BIPOC leaders and organizations have powered through the barriers erected by white supremacy to make significant progress for their communities, and the nonprofit community as a whole.

To learn about just a few, check out:

May we all constantly interrogate the system of white supremacy in which the nonprofit sector operates, and often perpetuates. May we all work to create a more just, equitable, and healthy society NOW, and not wait until "we're in charge." And may we all celebrate Black progress and work to repair the damage done to Black communities, this Black History Month and beyond. 

Photography is provided by Third Curtain Productions and Jay EsPhotography