Updated September 2026

Diversity, equity, and inclusion in philanthropy raises practical questions: Who can access funding? Whose expertise shapes decisions? And does support last long enough for nonprofits to plan?

For funders and nonprofit leaders, assessing commitment to equity means examining grantmaking practices alongside public statements. A useful review considers who receives money, the conditions attached to it, and whether relationships continue beyond an initial award.

Research published in 2026 offers evidence about those questions, particularly for Black-led nonprofits. It also highlights why funding discussions should include the people responsible for delivering nonprofit services.

What research shows about funding for Black-led nonprofits

In April 2026, Candid and ABFE released research examining foundation grants from 2016 through 2023, alongside survey responses from more than 3,500 nonprofits and interviews with nonprofit leaders and foundation representatives.

The findings challenge the assumption that commitments following the 2020 racial justice movement produced lasting increases across Black-led organizations.

Most of the additional funding went to larger Black-led nonprofits between 2020 and 2022, followed by a decline in 2023. Smaller Black-led organizations generally experienced little or no funding change. The research also identified barriers to sustained relationships, including limited access to funder networks and little feedback on rejected proposals (Candid, 2026).

These are historical grant findings published in 2026. They should not be presented as measurements of total philanthropic giving in 2026 or generalized to every area of DEI.

The broader nonprofit funding environment

The Center for Effective Philanthropy’s State of Nonprofits 2026 adds a wider perspective.

Its February 2026 survey received responses from 380 nonprofit organizations. The panel represents U.S. nonprofits receiving funding from at least one foundation that gives $5 million or more annually.

Nearly 60% of responding nonprofit CEOs reported that obtaining foundation funding had become harder since January 2025. Meanwhile, 46% said their own burnout was very much a concern, and 45% identified staffing as their organization’s biggest challenge (Grundhoefer et al., 2026).

These findings describe broader nonprofit pressures. They do not establish that changes to DEI funding caused those difficulties.

For planning purposes, funders and nonprofit boards should consider financial stability and staffing capacity together.

What meaningful support can look like

Candid’s research identifies three dimensions of support: financial, social, and human-centered.

Financial support concerns access to grants. Social support includes relationships, introductions, and continuing engagement. Human-centered support involves respecting nonprofit leaders’ expertise and recognizing the people behind the work.

In interviews, Black nonprofit leaders described the value of funders who trusted their community knowledge, shared connections, and demonstrated sustained interest in their organizations. They also described relationships undermined by double standards or a lack of respect (Sato, 2026).

Funders can use these dimensions to review their own practices: Are selection criteria clear? Can applicants reach someone with questions? Does a declined proposal receive useful feedback? Are reporting expectations proportionate to the award?

Questions nonprofits can ask prospective funders

Nonprofit leaders can also use funding conversations to clarify what a partnership would involve:

• Permitted spending: Can the grant cover salaries, administration, and essential operating costs?

• Duration: Is support limited to one award, or is renewal possible?

• Decision timing: When will the organization receive a decision?

• Reporting: What information is required, and how frequently?

• Communication: Who should the nonprofit contact if circumstances change?

These questions are practical planning prompts. They help organizations assess an opportunity before committing staff time to an application.

Connect funding plans with inclusive hiring

For nonprofit employers, a useful next step is to review hiring plans alongside confirmed funding. Identify which roles the budget supports, what each person will actually do, and which qualifications are essential.

Write job descriptions that explain responsibilities clearly and distinguish required experience from preferences. Be specific about compensation and working arrangements wherever possible.

If your organization is preparing to recruit, use Diversity.com’s Inclusive Job Description Guide as a starting point for reviewing your next posting.

How Diversity.com Supports Nonprofits & Mission-Driven Organizations

At Diversity.com, we help nonprofits build diverse, inclusive teams that reflect the communities they serve. We support nonprofit leaders, HR professionals, and job seekers in navigating the evolving DEI landscape within the mission-driven sector.

Whether you're expanding your team, increasing leadership diversity, or seeking a meaningful career in the nonprofit world, we provide resources, a nonprofit job board, and expert insights to support your mission.

For Nonprofit Employers & HR Professionals:

✔ Create a free employer account — Find mission-driven professionals who share your commitment to equity and impact. Choose from single listings, job packs (discounted credit bundles), or subscription plans for ongoing hiring needs.
✔ Access a diverse talent pool — Connect with qualified, purpose-driven candidates from diverse backgrounds to strengthen your organization.
✔ Stay informed with expert DEI insights — Get the latest on inclusive hiring best practices, leadership diversity strategies, and nonprofit workplace trends.

For Job Seekers in the Nonprofit Sector:

✔ Find nonprofit job opportunities with organizations that prioritize DEI — Work for mission-driven employers committed to equity and social impact.
✔ Create a free job seeker account — Discover roles that align with your values, purpose, and professional goals.
✔ Gain insights into inclusive nonprofit workplaces — Learn about organizational DEI commitments, hiring practices, and leadership diversity before applying.

We’re committed to helping nonprofit employers and job seekers build stronger, more inclusive teams to drive meaningful change.

Explore our platform today and take the next step toward a more equitable nonprofit sector.

If you have any questions or need assistance, feel free to Contact Us Here. Our dedicated support team is ready to help!

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• Nonprofits & DEI Funding Cuts: How to Adapt After $1.7 Billion in Grant Cancellations

• Illinois’ Nonprofit Diversity Law Under Federal Attack: What This Means for DEI in Other States

• How Nonprofits Can Build Inclusive Workplaces & Improve Hiring Practices

• Should Nonprofits Speak Out on DEI? How to Take a Stand Without Risking Funding

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• The DEI Lawsuit Against the Trump Administration: What It Means for Nonprofits

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Sources & References:

• Candid. (2026, April 7). New report details lack of support for Black-led nonprofits following 2020 racial justice movement. https://candid.org/press/new-report-details-lack-of-support-for-black-led-nonprofits/

• Grundhoefer, S., Smith Arrillaga, E., & Buteau, E. (2026). State of nonprofits 2026: What funders need to know. Center for Effective Philanthropy. https://cep.org/wp-content/uploads/2026/05/CEP_State_of_Nonprofits_2026_FNL.pdf

• Sato, G. (2026, April 9). How can funders better support Black nonprofits for lasting change? Candid. https://candid.org/blogs/how-funders-can-support-black-nonprofits/