The Bigger Than Us Residency was established to address the unique challenges faced by Black and Brown nonprofit founders and to amplify their impact through targeted leadership development. Key statistics and insights underscore the necessity of this initiative:
Challenges Faced by Black and Brown Nonprofit Leaders:
Underrepresentation in Leadership in the US: Despite Black individuals comprising 12% of the U.S. labor force, they hold only 7.5% of management positions, indicating significant underrepresentation in leadership roles across sectors.
Underrepresentation in Leadership in the UK:
A report by Green Park revealed that over one-third of the UK's 100 largest charities have all-white senior leadership teams. Specifically, only 8.1% of senior positions in these charities are held by individuals from Black, Asian, and Minority Ethnic (BAME) backgrounds, despite BAME individuals comprising approximately 13% of the UK population. At the highest leadership levels — Chair, CEO, and CFO— this representation drops to 6.2%. green-park.co.uk
In the environmental sector, the third annual Racial Action on the Climate Emergency (RACE) report found that less than 5% of employees in UK environmental organizations are people of color, compared to the national workforce average of 16%. This disparity is more pronounced in larger organizations, where diversity figures are as low as 1.8%.
Funding Disparities:
Nonprofits led by Black CEOs constitute 28% of organizations with budgets under $50,000 but only 12% of those with budgets over $10 million, highlighting systemic funding inequities.
A 2020 report by Bridgespan and Echoing Green analyzed three years of funding data for 164 U.S. nonprofits that were winners, finalists, or semifinalists in Echoing Green’s fellowship program. The study found that white-led groups had budgets that were 24% larger than those led by people of color. Additionally, groups led by Black women received less funding compared to those led by Black men or white women.
Similarly, a 2023 study surveying over 200 social services and arts nonprofits across the U.S. found that nonprofits led by or serving people of color faced greater financial pressures. The research indicated that these organizations raised less revenue through donations and grants from government, foundations, or corporations.
Access to Funding Networks: A substantial 63% of leaders of color report limited access to individual donors as a fundraising challenge, compared to 49% of white leaders. Similarly, 51% of leaders of color cite lack of access to foundations as a challenge, versus 41% of white leaders.
Impact of Leadership Development Programs:
Organizational Sustainability: Investments in leadership development result in more mission impact, higher revenues, lower costs, and greater stability for nonprofits.
Employee Retention: Nonprofits that prioritize leadership development often see improved employee retention, as developed leaders foster the growth of their teams, leading to internal hiring and smoother change management. NMBL Strategies
Enhanced Organizational Performance: Comprehensive leadership training equips managers and executives with the necessary skills and strategies to manage teams effectively, improving overall organizational performance.
These insights highlight the critical need for initiatives like the Bigger Than Us Residency to support and empower Black and Brown nonprofit leaders, fostering equity and excellence in the sector.