This Black History Month, we explore the difficulties and obstacles faced by nonprofit organizations led by Black leaders in the Kansas City metro area. We met with five Black nonprofit leaders for a conversation centered around these challenges, with a specific focus on the ongoing struggle for adequate funding.
In the world of nonprofit organizations, Damon Daniel, President of Adhoc Group Against Crime, discusses the pursuit of funding and how it can be filled with challenges and shifting dynamics.
The challenge of fundraising often brings obstacles for nonprofits. Daniel says, “I think in some ways we have all faced some of the same challenges when it comes to fundraising relationships. The power lays in relationships and so many of us don’t have access to people with deep pockets or foundations that really want to invest outside of the box.” The reliance on relationships is well-known, yet not everyone has access to individuals or foundations with the financial capacity to invest outside traditional norms. The struggle to secure funding for innovative programs and services, especially those designed to cater to specific populations, remains a challenge.
This extends beyond financial aspects. Nonprofits, particularly smaller Black-led organizations, face hurdles in terms of securing funding for operations such as technical support and essential skills. “There’s a lot of programs that fund service, but not general operating. We have overhead costs. We have to pay rent, you have to pay utilities.” Additionally, gaps in grant writing and human resources can limit the operational capabilities of organizations, hindering their ability to secure necessary resources for general operating costs like rent, utilities, and insurance.
Flexibility in funding is crucial for the sustainability of small nonprofit organizations. Unlike program-specific funding, general operating funds provide the necessary flexibility to cover overhead costs, invest in professional development, and acquire essential resources like computers and software. “Having access to a diversity of funds is important especially for small and nonprofit organizations.”
Daniel notes that over the years, there has been a notable shift in philanthropic trends. The concept of trust-based philanthropy has gained traction, offering a departure from traditional approaches. “In the last few years I’ve seen a bit of a shift in that regard to trust based philanthropy. It gets away from the systemic problem of funding these days and provides, especially nonprofits the opportunity to really do the work.” This approach focuses on building trusting relationships between funders and nonprofits, providing an opportunity for organizations to truly engage in their work without systemic constraints.
Addressing these problems requires an investment in people who look like the communities they serve. Representation becomes a pivotal factor in creating sustainable solutions. “These problems are not new problems. These are century old problems that are going to take a long time. We should have an investment in people who look like the communities they serve.”
In the ever-evolving landscape of nonprofit philanthropy, the challenges are nuanced, yet the resilience and determination of organizations continue to shape positive change. The shift towards trust-based philanthropy, calls for diversity, and flexibility in funding signal a promising path forward. As we navigate the complexities of fundraising, it becomes evident that a collective commitment to overcoming challenges will pave the way for a more equitable and impactful nonprofit sector.