Problems with Restricted Funding for Black-led Organisations

As we strive for a more inclusive and equitable society, it is paramount to acknowledge the historical challenges Black-led organisations face in the UK concerning restricted funding in the charity sector. Despite their crucial role in advancing social change and addressing systemic inequalities, these organisations have encountered numerous barriers rooted in historical biases. This blog post will delve into these biases, shedding light on some obstacles and issues that must be addressed to foster a more diverse, empowered and impactful future.

Institutional racism within the charity sector has been a significant barrier for Black-led organisations seeking funding. Biases and unconscious prejudices have resulted in unequal opportunities and limited representation of these organisations in funding decision-making. This systemic issue has denied them the resources needed to amplify their impact. A study by The Runnymede Trust exposed racial disparities in the UK's philanthropic sector, revealing the under-representation of Black-led organisations in funding distribution. According to The Runnymede Trust's research, Black-led organisations in the UK receive disproportionately smaller philanthropic funding than their white-led counterparts. The study revealed that despite their crucial roles in addressing social inequalities and advancing positive change, these organisations face significant barriers in securing adequate financial resources to support their missions effectively. The statistics show that the funding gap is not merely coincidental but a result of historical and systemic biases that have persisted.

Historically, decision-making positions within funding bodies have lacked diversity and representation from Black communities. The absence of diverse perspectives has resulted in a limited understanding of the unique challenges faced by Black-led organisations. As a result, their funding priorities and strategies have often been overlooked and do not align with the organisations' specific needs and goals, perpetuating the cycle of restricted resources. To address this issue, there is a pressing need for funders to prioritise diversity and representation within their decision-making bodies.

Our CEO, Bayo Adelaja, shared during our Fireside Chat regarding the Cost of Living Crisis and Funding the Black Community that “There is a perception of a deep lack of trust and engagement with the funding sector. The result is an increased scarcity mindset and heightened competition between Black-led organisations. We are forced into relationships where we have to work together to satisfy a mandate drawn out by a funder, but there's no time or funding for authentic collaboration." This point further amplifies the importance of including individuals with lived experiences and a deep understanding of the challenges faced by Black-led organisations, as they can lead to more informed and empathetic funding decisions encouraging fruitful and impactful collaborations.

In addition, a study conducted by The Ubele Initiative revealed how unconscious biases in grant-making have affected the growth and sustainability of Black-led organisations, limiting their access to essential financial resources. Unconscious bias within grant-making processes have also contributed to the restricted funding faced by Black-led organisations. These biases can lead to a preference for more established and mainstream charities, overlooking innovative and community-led initiatives that may challenge the status quo.

Addressing these barriers requires a collective effort from funders, policy-makers, and the broader philanthropic community. Together, we can build a more just and inclusive charitable sector where Black-led organisations receive the support they need to thrive and create lasting positive impact for future generations. 

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