In May 2025, the Black Equity Collective (BEC), in partnership with the Nonprofit Finance Fund (NFF) and public-opinion research firm EVITARUS, released a groundbreaking report based on surveys of 217 Black‑led organizations (BLOs) across California.
Economic Contributions
The report quantifies significant economic impact: in fiscal year 2023, these BLOs employed over 4,000 people, paid more than $335 million in salaries, and contributed $22 million in payroll taxes to the state’s tax base. Many of these organizations are concentrated in underserved areas, directly fueling local economic activity through payroll, contracting local vendors, and sustaining community-based infrastructure.
Community and Civic Impact
Beyond economics, BLOs serve as essential lifelines—providing services in health, safety, violence prevention, policy advocacy, and racial justice. These organizations play a central role in enhancing community well-being through culturally responsive and deeply localized programming.
Capacity Constraints and Under‑Funding
Despite their substantial contributions, 80% of BLOs report insufficient staffing to meet community demand. Many organizations struggle with chronic underfunding—which limits both their day-to-day service delivery and their ability to pay livable wages to employees. These constraints undermine their potential scale and reach.
Unlocking More Impact Through Investment
The report argues that with adequate financial support from public and private funders, the organizations’ impact would grow exponentially. Strategic, equitable investment could enable BLOs to deepen services, scale up programming, sustain staff, and generate greater community wealth over time.
Recommendations for Funders and Policymakers
BEC underscores targeted policy and philanthropic reforms:
- Philanthropy: Value and invest in the economic benefits that BLOs deliver; support infrastructure, capacity-building, and longer-term, unrestricted funding.
- Government funders: Facilitate more equitable partnerships and funding pathways that enable BLOs to contribute effectively to shared equity goals.
- All funders: Recognize BLOs as job creators and community stabilizers—and fund them accordingly.
Why This Matters
This report fills a critical gap in the narrative around nonprofit impact: it provides rigorous, first-of-its-kind data demonstrating that Black‑led nonprofits are not only service providers but also economic engines. Their struggle underlines broader structural inequities in philanthropic and government systems, where Black-led organizations often receive less funding despite serving communities with heightened need.
Looking Ahead
The report calls for long-term, equity-centered investment and partnership with BLOs as essential to advancing racial justice and community economic resilience statewide. As funders and policymakers reflect on recovery and rebuilding strategies post-pandemic, centering Black‑led organizations could accelerate more inclusive and sustainable growth.
Read the full report at www.blackequitycollective.org.