Blog

Why Black-Led Nonprofits Must Build Financial Reserves for Long-Term Sustainability

March 28, 2025
Non-Profits
5 min
Team GXC

A lot of Black-led nonprofits run month to month, grant to grant. That’s stressful, exhausting, and unsustainable.

Here’s the truth: We need reserves.

What’s a reserve? It’s money set aside so your nonprofit can survive a crisis, expand when needed, and stop relying on unpredictable funding sources.

White-led organizations often have way more unrestricted funds than Black-led ones. That means they can take risks, invest in innovation, and plan for the future. Meanwhile, we’re often stuck just trying to keep the lights on.

So how do we change that?

• Start small. Even setting aside 3-6 months’ worth of expenses can make a difference.

• Ask for unrestricted funding. Donors often assume their money must go directly to programs, but nonprofits need operating funds, too!

• Diversify revenue. Grants are great, but we need income from donors, memberships, events, and earned revenue.

We can’t build strong Black-led nonprofits without financial stability. Let’s make reserves a priority.

Share this article
Team GXC
GET IN TOUCH

Submit a nonprofit

If you are a Black-founded nonprofit, please submit to our database. Together we can drive dollars to underfunded organizations. Your submission helps us and the world better understand how to support Black-founded organizations.