Study: 2.9% of Philanthropy In US Supports Organizations Serving Communities of Color

The inaugural Communities of Color Index (CCI) is a systematically generated landscape of charitable organizations dedicated to communities of color in the United States. While communities of color made up 44.3% of the U.S. population as of the 2020 Census, the CCI shows that organizations serving communities of color received $16.0 billion in charitable contributions in 2022, accounting for 2.9% of total philanthropic giving. Charitable giving to these organizations saw substantial growth during the pandemic years of 2020 and 2021, with funding leveling off in 2022.

The CCI, part of the school’s Equitable Giving Lab and made possible through funding from Google.org Charitable Giving Fund and the Raikes Foundation, focuses on data from 2012 to 2022—the most recent year for which more than 99% of finalized IRS data on charitable organizations were available. The report illustrates key characteristics of organizations serving communities of color, including the amount of total philanthropic support they receive from individuals, foundations and corporations. The CCI focuses on four distinct populations—American Indian/Alaska Native, Asian-American & Pacific Islander (AAPI), Black/African-American, and Hispanic/Latino communities.

“Philanthropy plays a powerful role within communities of color. This research offers a unique opportunity to better understand dynamic shifts, identify areas of growth and gaps, and assess where investments can have the most impact,” said Una Osili, Ph.D., Associate Dean for Research and International Programs. “By better understanding the landscape of charitable giving to organizations dedicated to communities of color, donors, nonprofits and funders are equipped to make informed, strategic decisions.”

Communities of color represent a substantial portion of the U.S. population and contribute significantly to the nation’s economic, cultural and social fabric. Recently, there were upward shifts in philanthropic giving, particularly in response to major events such as the racial justice movement of 2020, the rise in anti-Asian hate crimes, and disparities exposed by the COVID-19 pandemic. However, philanthropic giving to organizations serving these communities has not risen above 3% over the last decade of data (2012-2022). Notably, organizations serving American Indian/Alaska Native, AAPI, Black/African-American, and Hispanic/Latino communities each received less than 1% of total charitable dollars. The CCI provides a new, data-driven resource for understanding these giving patterns.

Key findings reveal the giving landscape for communities of color:

• Organizations serving communities of color received $16.0 billion in charitable contributions in 2022. Even following large growth in 2020 and 2021, these organizations comprise 2.9% of overall charitable giving. CCI organizations also disproportionately rely on government grants, compared to non-CCI nonprofits.
• Giving to organizations serving communities of color increased dramatically in 2020 and 2021, but leveled off in 2022.
• Human services and education organizations were the largest recipients of gifts among the full Communities of Color Index, at 31% and 29% of donations, respectively. Donations to health organizations represented 8% of donations.
• Charitable giving to organizations serving multiple communities of color is significantly greater than funding directed toward organizations serving any specific racial, ethnic or tribal population.

Key findings also show giving to each of the communities in the study:

• CCI organizations primarily serving American Indian/Alaska Native communities received $1.2 billion in donations in 2022, or 0.21% of total charitable giving. Government grants to these organizations, especially prior to the COVID-19 pandemic, grew at much lower rates than among other nonprofits.
• CCI organizations primarily serving Asian-American & Pacific Islander (AAPI) communities received $944 million in donations in 2022, or 0.17% of total charitable giving.
• CCI organizations primarily serving Black/African-American communities received $3.3 billion in donations in 2022, or 0.61% of total charitable giving. Black/African-American education organizations received significantly more funding than any other subsector, accounting for 41% of all philanthropic support to Black/African American-serving organizations.
• CCI organizations primarily serving Hispanic/Latino communities received $1.4 billion in donations in 2022, or 0.26% of total charitable giving. From 2012 to 2022, these organizations’ growth in expenses outpaced the growth in their philanthropic support (147% increase and 137% increase, respectively).

Source: Lilly Family School of Philanthropy

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