Black Philanthropy Month – What Black Led Nonprofits Need to Know

Black-led nonprofits are unique in their mission and the obstacles they face. Here are some thoughts on navigating the waters. 

 

The story 

Behind every nonprofit is a story. Someone, somewhere saw something that made them think, “How can I help? How can we make it better? How do I get others involved?” Surely, we’ve all had those experiences, and if we take action, we can make an impact on whatever level we’re comfortable with. From volunteering to being a member of the Board, each person has a reason to get behind the cause. 

From that initial spark to want to make a difference comes a long road of digging one’s heels in and bringing it to fruition. Others must see the need, recognize the importance of this for the community and beyond, and support the mission. This makes telling the story so important. Just as with everything else within the organization, the correct policies need to be in place to convey the message and procure everything from funding to volunteering. 

This all begins with mission and vision statements and taking the time to create clarity and call to action. Every time you put the nonprofit out into the world, the mission and vision must be crystal clear. Make sure that is the first thing you have in order when creating a nonprofit. 

 

Under the microscope 

Black-led nonprofits face unique challenges, ranging from visibility to obtaining funding to lack of mentorship and support. It is imperative that Black-led nonprofits be their best and brightest when presenting their mission and vision to the world. Here are some tips for shining the spotlight on these organizations: 

 

1. Engage within and outside of the community. Take advantage of events where the organization’s mission can be showcased.  

2. Join chambers, alliances, etc., to increase visibility.  

3. Look for opportunities for free nonprofit services such as advertising. 

4. Be sure to be on point with a succinct message and provide simple and meaningful ways for others to get behind the mission.  

5. Provide education for increased awareness.  

6. Align with community partners. 

 

But what if you have difficulty enacting these suggestions? What happens when the Black-led organization is still left behind? The challenges are large, but not insurmountable.   

Our technology-fueled world does allow for greater exposure. Make meaningful connections on platforms such as LinkedIn, Instagram, Facebook, etc. It takes discipline, but posting and connecting regularly has its rewards. Don’t forget about email lists and creating eblasts and newsletters. Look at your conversion rates, amount of reposts and likes, and so forth. Making social a part of your everyday nonprofit work will show you trends, where you’re providing interesting content, and where you lack engagement. 

When it comes to funding, Black-led nonprofits face an uphill climb. Often overlooked, these organizations need better exposure and to be mindful of always putting their best foot forward. Growing awareness puts a lot of eyes on an organization, and conveying the need for and importance of the mission along with how they are making a difference is paramount to success. Take the time to align your organization with like-minded causes where you can network and support each other and study every grant opportunity available. There are grants for underserved communities that may prove to be very beneficial in advancing the visibility and viability of your nonprofit. 

 

Governance 

Then, there’s the not-so-public side of governance. Together with the nonprofit’s Board of Governance, several housekeeping items need to be attended to: 

Audits are required so make sure you have your foundational house in order.  

Studies show 76% of Black-led nonprofits operate on less than $500,000 per year. Funding opportunities can be challenging for these organizations, which are mostly grassroots efforts.  

To that end, it is extremely important to have the foundational house in order when competing for the limited funds that exist. Here are the important elements of doing so: 

A yearly audit, which can range in price from $5,000 to $20,000, is not required by the IRS unless the organization has over $750,000 in expenditures. However, each state has its own regulations. Potential grantors will also consider this information when awarding funding.  

An annual audit ensures that the financial infrastructure of the organization is properly accounted for. It is advisable to change auditors (even a different auditor in the same firm) every 5 to 7 years to provide objectivity and best practices. Good housekeeping with financial audits reflects sound practices in a nonprofit organization. 

Overseeing the operations of a nonprofit is the responsibility of the governance board. Everything from ensuring alignment with the CEO and staff members to the scope of responsibility of the Board to the creation of a framework for decision-making. These elements are crucial for success. 

 

Nonprofits are a unique world unto themselves but can often be the most rewarding venture someone can dive into. Stay tuned for more tips, strategies, and encouragement from EBS. We believe in the missions and help to promote success! 

 

EBS | Exceptional Business Solutions