The data is in and it tells a story that many Black nonprofit leaders already know by heart.
A new joint report from Candid and ABFE, From Transaction to Transformation, reveals what Black-led organizations across the country have long experienced firsthand: they are less likely to receive foundation grants, less likely to sustain those relationships over time, and too often left out of the very conversations that determine how philanthropic dollars flow.
For organizations like Simon Peter Kids doing critical, community-centered work with young people who have aged out of foster care, this isn’t abstract. It’s the reality that shapes how we operate, plan, and dream for our youth every single day.
The Numbers Don't Lie
Between 2016 and 2023, only 50% of Black-led nonprofits received foundation funding in any given year, compared to 70% of other nonprofits. Smaller Black-led organizations fared even worse — just 30% received a grant in a given year, despite actively seeking funding.
When the pandemic and racial justice movement of 2020 sparked a surge in philanthropic pledges to Black communities, many hoped the landscape had finally shifted. But the report tells a different story. Most of the new funding went to large Black-led organizations. Small nonprofits saw little to no change. And by 2023, even large Black-led nonprofits saw that funding dry up — confirming what many leaders already suspected: that wave of generosity was temporary.
As one Black nonprofit leader put it: “That window closed probably in 2023, and people started signaling that those areas of money and resources were already drying up.”
It's Not Just About the Grant
One of the report’s most important insights is this: money alone is not enough.
Black nonprofit leaders described what they actually need from funders and it goes far beyond a check. They want sustained relationships. They want to be trusted as experts in their own communities. They want funders who show up not just at reporting time, but as genuine partners invested in shared outcomes.
One leader’s words stayed with us: “Some of my authentic partner funders are the ones who care about how I am doing and are not always about the work, program, and report.”
That is what transformative philanthropy looks like seeing the people behind the mission, not just the metrics.
What This Means for Youth Like Marcus
When Black-led nonprofits are underfunded, the young people they serve pay the price. Organizations working with foster youth young people already navigating systems that have historically failed them need stability, capacity, and room to grow. That requires funders who show up consistently, not just when racial equity is trending.
Youth aging out of foster care deserve organizations that can plan long-term, invest in their programs, and build the kind of trust that creates real change. That only happens when the nonprofits serving them are also trusted, resourced, and respected.
Moving From Transactional to Transformative
The report’s call to action is clear: philanthropy must move beyond one-time grants and performative commitments. Real partnership means financial support, yes but also sustained relationships, respect for community expertise, and genuine investment in the people doing the work.
The young people we serve have already beaten impossible odds just to get here. The least philanthropy can do is show up and stay.
Simon Peter Kids is a nonprofit in the DMV region empowering youth aging out of foster care through financial literacy, life skills, and emerging technology education. Learn more at simonpeterkids.org.
