March 21, 2025 Story by: Editor
Funders Urged to Address Racial Inequality and Ensure Long-Term Support for Black-Led Charities
Charity funders are being called upon to confront racial disparities and establish sustainable funding models for Black-led third-sector organizations.
A report from social justice organization Ten Years’ Time highlights that despite Black, Asian, and other minority ethnic groups making up approximately 14% of the UK population, independent funders—including trusts and foundations—continue to distribute grants unfairly among these communities.
Research indicates that up to 87% of micro and small voluntary sector organizations led by Black and other minority individuals lacked sufficient funds to sustain operations beyond three months during the COVID-19 pandemic. Additionally, these organizations were the least likely to receive financial aid.
The report describes the funding landscape for the Black, Asian, and Minority Ethnic (BAME) voluntary and community sector (VCS) as “unsustainable” and warns that it leaves organizations vulnerable to financial insecurity.
This issue has persisted for years, with little improvement since a 2015 report by Voice4Change England found that BAME-led VCS groups had suffered a 25% reduction in funding over the previous five years following government austerity measures.
Professor Patrick Vernon, a philanthropist and social commentator, emphasized the importance of active anti-racism efforts within the funding sector to address long-standing structural inequalities.
“Off the back of the Black Lives Matter movement, I think the reason why the report is here it’s about challenging funders and philanthropists who give money for good causes and how they should now focus on racial justice and giving grants funding to Black-led organizations, support them and acknowledging the contribution of these organizations,” Vernon told The Voice.
“They need to give parity to a whole range of social issues – mental health, health care, domestic violence, racial economic development, criminal justice – issues affecting Black people in society.
“The report is a challenge and a call to action for the billions that are spent on funding charities and community groups, and we don’t get our fair share.”
In response to the global resurgence of the Black Lives Matter movement following the death of George Floyd in May 2020, the report urges organizations to take meaningful action against racism, beyond issuing public statements.
Proposed solutions include redistributing power from senior leadership to ensure greater equity for individuals from racialized backgrounds.
The report also calls for funders to enhance financial literacy among non-finance professionals, remove barriers to accessing capital, and introduce strategies that “inject ambition into the British funding landscape and create a clear roadmap for action.”
Prominent funders, including Esmee Fairbairn Foundation, Lloyds Bank Foundation, and the Joseph Rowntree Charitable Trust, have acknowledged racial injustice within the sector and are taking steps to dismantle systemic barriers that have historically disadvantaged minority communities.
Eli Manderson, a lead researcher on the report, stressed the importance of understanding historical injustices to address the “racist and disempowering power dynamics” embedded in many funding practices.
“We review how both sides of the coin need to be addressed and understood to engage in racial justice work to the best of our ability,” Manderson said.
“Such a multifaceted approach requires, in our eyes, a focus on the grantmaking endeavors of trusts and foundations in the UK, their investment strategies, and the internal operations and governance of charitable funding organizations.
“Without applying a racial justice lens to all of these deeply important areas we believe we will not be able to achieve wholesale transformational change and instead will be committing to action, which plays within the confines of the current structurally racist system.”
Source: The Voice
