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VOL. 132 | NO. 255 | Tuesday, December 26, 2017

Pearl and Mel Shaw

Investing In Black-Led Organizations

Mel and Pearl Shaw

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Are all nonprofits created equally? Do they receive equal investment? Have equitable access to resources and expertise? Do we need to take a closer look at black-led organizations to help ensure their sustainability and effectiveness? What role do these organizations play and why are they important?

In the report “Black-Led Organizations In The Bay Area: From Crisis to Change” authors Constance J. Walker and Jeannine N. Walker refer to these organizations as “BLOs” and define them as “registered nonprofit organizations with black staff and/or board leadership.”

Their report for the Bay Area Black United Fund documents and analyzes the results of surveys and focus groups that gather information about BLOs in the San Francisco Bay Area. Here are a few of their key findings.

Ninety percent of Bay Area BLOs identify themselves as community-based organizations. Seventy-five percent are mature organizations that have operated for 11 or more years. Forty-seven percent have very small budgets of $500,000 or less while only 10 percent have budgets greater than $5 million. Forty-two percent have no reserves or endowment and, for those that do, it is most often insufficient.

For 92 percent, the chief executive officer or executive director primarily conducts fundraising and resource development. Bay Area BLOs have limited staff support: 62 percent have 10 or fewer people on staff, and 84 percent have 20 or fewer people.

For 59 percent of Bay Area BLOs, at least 50 percent of their clients are black and 30 percent serve a client base that is at least 80 percent black. On average, the ethnic composition of the population served by Bay Area BLOs is 59 percent black and 23 percent Latino.

In terms of moving forward, Walker and Walker report that revenue, systems, training and leadership development will be critical to the success of BLOs and the communities they serve. They also reported that BLOs who participated in the study were very interested in a “collaborative capacity-building initiative” that would target BLOs.

This report, written in 2015, has become a call to action. Since its publication, five funders in the Bay Area have created a collaborative capacity-building initiative designed to further develop the nonprofit sector by innovatively supporting the growth, sustainability and impact of BLOs.

The initiative seeks to “enhance the growth, sustainability, impact and sense of community of black-led anchor institutions in the Bay Area that provide critical programs and services to ensure the long-term vitality of the organizations and the black communities they serve; and apply a fresh, dynamic and replicable approach to collaborative capacity building that further develops the nonprofit sector with a lens toward race and equity.”

It will include an accelerator for emerging, innovative community anchors; a three-year stabilizer program for mature community anchors; and cross-cutting programs and services open to all BLOs in the service area.

We are proud to be part of this initiative and hope it will become a model for communities across the country, including Memphis.

Learn more about the initiative here; click here to read the original report.

Mel and Pearl Shaw, owners of fundraising consultancy firm Saad&Shaw, can be reached at 901-522-8727 or saadandshaw.com.

PROPERTY SALES 124 481 17,865
MORTGAGES 127 530 20,565
BUILDING PERMITS 195 891 36,836
BANKRUPTCIES 52 262 11,426