The more you know: Key facts about Black nonprofit leadership
A key factor in understanding the impact of Black-led nonprofits is the representation of Black leaders across the sector. The data reveals important insights into disparities in leadership, funding, and support. Two new fact sheets from Candid, produced in partnership with ABFE, offer a snapshot of nonprofits with Black CEOs and majority Black leadership. Key facts about nonprofits with Black CEOs and Key facts about nonprofits with majority Black leadership examine these organizations’ budgets, revenue, and subsectors and regions with the highest representation, among other data points.
Based on data from nonprofits that shared information on their CEO’s race with Candid between July 2019 and January 2024, 15% of CEOs identified as African American. Out of 6,119 organizations with Black CEOs, 2,165 had majority Black leadership—defined as having a Black CEO and 51% or more Black board members.
Here, we’ll explore the unique challenges these nonprofits face and include expert perspectives from sector leaders.
Black CEOs tend to lead smaller organizations with limited financial resources
Nonprofits with Black CEOs make up 28% of all organizations with budgets under $50,000 but only 12% of all those with budgets over $10 million. By contrast, white CEOs lead 56% of organizations with budgets under $50,000 but 74% of those with budgets over $10 million.
Susan Taylor Batten, president and CEO of ABFE, highlights what Black-led nonprofits are missing out on by not receiving adequate funding.
“These leaders are already delivering results in their communities. But with increased financial support, they could build internal capacity for structural transformation, scale their programs, reduce leadership burnout, particularly among Black women, and drive the bold, systemic change our country desperately needs,” she says. “Black-led organizations are poised to drive this change, but only if we are provided with resources and long-term support.”
Majority white-led nonprofits control 30 times more sector-wide revenue than majority Black-led nonprofits
Majority Black-led nonprofits tend to be smaller, with 61% operating with budgets under $100,000 and only 2% with budgets over $10 million. By contrast, 21% of majority white-led nonprofits have budgets under $100,000, and 8% have budgets over $10 million. Additionally, the median annual revenue of majority Black-led nonprofits is $302,000, compared with $908,000 for majority white-led nonprofits). In terms of total sector-wide revenue, majority Black-led organizations receive less than $3 billion, compared with majority white-led organizations that receive about $85 billion.
“Funders should prioritize organizations with smaller budgets [and] target substantial multiyear funding toward nonprofits with budgets under $100,000 and simplify grant applications, recognizing that funders often impose greater barriers to accessing large grants,” says Heather Infantry, CEO of Giving Gap. Additionally, funders should reward organizations whose core leadership consists of Black women and folks with lived experience [by] investing in them, as they are often most attuned to the needs of their communities and can drive more relevant and impactful programs.”
Black CEOs are more prevalent in the South but still underrepresented
In Georgia, 34% of nonprofits are led by Black CEOs, followed by Louisiana and Mississippi, at 30% each. However, these figures fall short of the Black adult population in these states. The gap is largest in Washington, D.C., where 42% of the adult population is Black but only 22% of nonprofit CEOs are. Black CEOs are also notably underrepresented in South Carolina, Mississippi, and Alabama.
“The South’s history of Black leadership has fostered strong roots for Black-led nonprofits, but systemic racism and chronic underinvestment limit their expansion,” says Taylor Batten. “These leaders aren’t lacking in vision or talent—they’re lacking the resources often directed to white-led organizations. Black leaders offer more than just representation; they bring a deep understanding of community dynamics, a sense of urgency, and a genuine commitment to social change. The underrepresentation of Black professionals in leadership roles affects all organizations, not just those serving communities of color.”
Black CEOs and majority Black leadership are most prominent in the human services and public benefit subsectors
Human service nonprofits and public benefit organizations have the highest representation of Black CEOs, at 19% and 18%. Majority Black-led organizations are also most common in the human services subsector, followed by public benefit. By contrast, environmental and animal welfare organizations have the lowest representation of Black leadership.
Latanya Mapp Frett, president and CEO of Rockefeller Philanthropy Advisors, explains that as decision makers within their communities, Black nonprofit leaders are focusing their efforts on addressing the issues most important to those they serve.
“Transformation, systems change, future focus…all of these are most likely to happen when those most impacted are involved in decisions for their communities. Black CEOs in most cases bring their backgrounds, networks, as well as aspirations to partner into their roles, allowing focus on issue areas that have long been overlooked in Black communities,” she says.
Nearly two-thirds of Black nonprofit CEOs are women, and they tend to lead the smallest organizations
Black women comprise 64% of Black nonprofit CEOs. Yet, among the nonprofits they lead, the largest share have budgets of under $50,000. Among the nonprofits white women CEOs lead, the largest share have budgets between $1 million and $10 million.
Black women leaders can face a multitude of challenges, including the chronic underfunding of their organizations. As Dr. Tamara Wilds Lawson, president and CEO of Washington Area Women’s Foundation, has discussed, a lack of trust in Black women’s leadership often exacerbates disparities in funding.
“We must create a more supportive ecosystem for current Black women and Black gender-expansive leaders while also nurturing a strong pipeline of emerging leaders in the sector,” she notes. “This will require disrupting the harmful systems and practices…which not only impacts the communities they serve but often costs Black women leaders their health and well-being in the process. A substantive reckoning must occur at both the systemic and organizational levels. The sector cannot afford to lose its valuable expertise and must honor its generational labor with sustained, robust investments and resources.”
Coach Ray says:
How much do Black Male CEOs bring in compared to their counterparts, as well as the Black Women who hold almost two-thirds of the market?
Tyrone C Merchant says:
As a Black male and president/founder of this nonprofit I agree with " The More You Know Facts", but it will not stop our determination to help our third graders. Thank You!!
bruce haynes says:
Do you think funders should make more grants but in smaller amounts to satisfy the suggestions of giving to smaller organizations? While this may get more minority based nonprofits funding, will these amounts truly make the impact needed for sustainability?
Maybe these organizations need to look more into social enterprise or contracts to have multiple revenue streams. That would reduce the reliance of grant funding.