A recent report from Propel Nonprofits examines the financial health culturally specific organizations in Minnesota. The organization uses the term culturally specific to refer to “nonprofits led by people of color and rooted in historically marginalized communities.” From President & CEO Kate Barr:
New Propel Nonprofits Report on Financial Health of Culturally Specific Nonprofits in Minnesota
The findings reinforced national research: these nonprofits operate in sectors that traditionally work with lower annual budgets, tend to be younger, and have disproportionally smaller operating budgets than their mainstream peers in the same sector. Crucially, compared to mainstream organizations in the same sector of similar budget size, these culturally specific organizations have smaller physical facilities, earn significantly less revenue, work with a markedly smaller share of unrestricted funds generated through trustee, individual and corporate donations, and have less unrestricted cash and lower unrestricted current assets.