Definitions Matter: <scp>BIPOC</scp> Nonprofits and Racial Disparities in Nonprofit Funding

What the paper says

ABSTRACT BIPOC (Black, Indigenous, and People of Color) nonprofits have gained increased attention and funding; however, a lack of clear definition and identification persists. This ambiguity hinders our understanding of the BIPOC nonprofits population and racial disparities in nonprofit funding. Utilizing first‐hand survey data from a sample of nonprofits in Minnesota, the study operationalizes six identification referents for BIPOC nonprofits. It presents a descriptive tabulation of BIPOC nonprofits across these referents and estimates revenue disparities between BIPOC and non‐BIPOC nonprofits based on various definitions and identifications. The findings reveal a substantial shift in the BIPOC nonprofits population when different definitions are applied. Furthermore, racial inequities in nonprofit funding could be distorted depending on how BIPOC nonprofits are defined and identified. Specifically, revenue disparities between BIPOC and non‐BIPOC nonprofits increase as more identification referents are used to define BIPOC nonprofits. The paper posits that the ambiguous definitions and identifications of BIPOC nonprofits may serve as mechanisms for racialized nonprofit organizations to legitimize the uneven distribution of resources along racial lines. It also advocates for data transparency and the implementation of more nuanced funding strategies to promote racial equity within the nonprofit sector.