Charities face battle to access funding to tackle racial inequality, says report

Charities are struggling to access funding to combat racial injustice and inequality, a report has warned.

Analysis of funding for organisations led by black people and supporting communities facing racial injustice, has found that the bulk of money on offer is focused on reacting to crisis and recovery around the Covid-19 pandemic.

However, “only a small proportion” is for “wider priorities of these organisations, or focusing on racial injustice and inequality”, the report found.

The report has been published by the Boabab Foundation and looks at how funders are backing projects and work to tackle racial injustice in the UK.

This found that much of the funding on offer is not extended beyond March 2021 as it is tied to Covid-19 efforts.

The report found that funding is failing to tackle inequality among recipients.

Hardest hit are those outside of London, women, disabled people, trans people coming from communities experiencing racial injustice as well as those from Roma, gypsy and traveller communities.

Coupled with “historic under-investment” this is forcing charities to continue operating with limited systems, personnel and financial continuity, says the report.

Being called for is “core and unrestricted financial support” which “is vital to address gaps in infrastructure costs, overheads, reserves, and de¬livering organisational strategies, which were inadequate¬ly supported through current funding provision”.

Funders are also urged to build partnerships with black-led organisations,

The report does highlight some signs of progress by funders to support charities tackling racism.

It notes that funders are becoming more flexible in helping charities to innovate.

There has also been a “welcome albeit belated shift towards participatory funding models”, including a reduction in levels of due diligence and easing of the application process. Funders are also increasingly taking feedback from people with lived experience of racial injustice.

“This progress has been welcomed across the board, and needs to be sustained,” says the report.