Survival Steps for Black Leaders in a Funding Crisis
If you are reading this, you are likely well aware of the precarious position that Black-led charities and social enterprises (CSEs) are in, and how quickly we forget after every economic downturn the fate of so many of these organisations. Unfortunately, many small organisations can’t always stay small nor can they grow into larger, sustainable operations that can take several hard knocks and survive.
Black-led CSEs play a crucial role in providing support to under-served communities overlooked by larger organisations and overwhelming smaller ones. They are vitally important to the grant funding ecosystem and every time there is a financial crisis, they are the first to go. Their lack of resources and reserves often means a rapid decrease in funding and their size often warrants salaries, rent, and other necessary expenses.
Do it Now Now (DiNN) has not escaped the potholes of this current economic crisis, and we are incredibly grateful to the many hands that have helped us pivot into increased sustainability over the last 18 months. We have seen enormous generosity from both our community of Black leaders as well as grant funders, experts and other key stakeholders. But we have also looked ahead and done our homework, we have kept an ear to the ground and tried to balance out pragmatism with optimism. There are in-house skills that we have built to help us be more resilient.
We want to ensure that as many organisations as possible with a powerful vision make it through this crisis. Not only because it is better for the communities that they serve, but also because we know the knowledge loss each crisis suffers and how less and less organisations are able to build on their lived experience of navigating the third sector and learning from their mistakes.
In the future, we will be speaking more about the expansion of small enterprises, and the need for agile operations working in hyper-local ways. For now, we want to share that we understand the panic and fatigue being felt across the industry and some practical steps that Black leaders can take. Some of these steps echo our recommendations from our Cost of Living Crisis Report, A Desert without Resources.
Write your reports
Build trust and ensure your organisation is being adequately represented in your reporting. Don’t underestimate the worth of a solid report with clear measurable impact. Advertise all of the previous funders you have worked with and share the successes of your work with pride.
Don’t take on funding that requires new hires
As much as it may be tempting, we are all aware of how precarious growth is. When delivering to hard-to-reach communities, or working in a way that requires resources and dedicated support, it is too easy to take on long term commitments. Wherever possible upskill existing teams or hire consultants.
Review operations
Black leaders should conduct thorough reviews of business operations to identify areas where cost-saving measures can be implemented without compromising the core mission and values of your CSE.
The amalgamation question
Collaboration efforts can support skill sharing partnerships with other CSEs and can also provide avenues for shared resources and expertise. If you have built an organisation around an edict that supports a niche Black community, you have the opportunity to maintain that mission while making your organisation accessible to a broad funding net.
Share your story
Black CSEs should proactively engage with policymakers, industry associations, and community organisations, to advocate for policies and initiatives that address the economic crisis and support business growth. This can include advocating for affordable rents, access to affordable capital, and supportive regulatory environments. Oftentimes, we think that we are doing something wrong, but it is vitally important to recognise where support is lacking and be confident to discuss issues of racial or gender bias.
Query your tax
Councils are struggling and support is rapidly drying up. Many people will be receiving high tax bills, and we implore you to get them checked. So many of them are inaccurate and could be the final blow.
Free services
There are many charities that support other CSEs in legal and financial matters, there are even services that provide a free board with advice from experts selected to support you in a critical way. Leverage your work with Black and Global-Majority communities as a way to get bespoke support, don’t be afraid to ask for experts who have overcome similar challenges.
To crowdfund?
This works for many people. Especially if your work is hyper-local or has global appeal. Unfortunately, as is often the case, mid-size CSEs will have the hardest time crowdfunding to pay for recurring expenses like salaries and energy bills. You can throw an enormous amount of effort into crowdfunding because it seems like the only possible solution, but if you do, have a plan for the funds that will provide regenerative solutions and not go to plugging the gaps.
Be open with your staff
It is crucial for Black leaders to maintain open communication with their employees, customers, and other stakeholders. Transparent communication can help manage expectations, build trust, and maintain positive relationships. Black leaders are under pressure to never fail lest they become another statistic. That additional pressure is not helpful when you’re fighting for your organisation’s survival.
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