Nonprofit burnout by design: How lack of philanthropic support impacts women of color nonprofit leaders

Carrying the Weight, Leading the Change, a new research report from the Boston Women’s Fund, shows that women and gender-expansive nonprofit leaders of color are paying the cost of philanthropic inequities with their bodies.

The report’s focus group participants expressed that insufficient funding resulted in limited staff and chronic overwork to meet rising community needs. Many leaders described neglecting their well-being to sustain their organizations; one said she “took on every role, prioritized the organization above all else, and neglected myself completely.” This type of strain often resulted in burnout.

For these women and gender-expansive nonprofit leaders of color, burnout manifested as a combination of illness, sleeplessness, anxiety, and sometimes hospitalization, among other physical and mental impacts. Some said it undermined their professional confidence and impacted personal relationships.

Their experiences and sector statistics revealed that nonprofit burnout among leaders of color isn’t a personal failing; it’s a structural issue. Here’s how.

Women of color nonprofit leaders receive less financial support

Our report finds that just $25 million, or 0.02%, of $112 billion in philanthropic revenue in Greater Boston goes to organizations explicitly dedicated to women and gender-expansive people of color. That’s equivalent to 20 cents of every $1,000 of the region’s philanthropic revenue. While the report focuses on Greater Boston, national data echoes this disparity: Only 0.5% of foundation giving in the United States goes to women and girls of color.

Consequently, women and gender-expansive nonprofit leaders of color have the lowest median compensation and run organizations with the lowest revenues. These financial inequities result in leaders working to address needs in historically underserved communities while under-resourced themselves and operating with the smallest staffs. This, in turn, compounds the stress and challenges of securing the next year’s funding.

Standard philanthropic practices perpetuate financial inequities and nonprofit burnout

Personal connections over impact: The focus group participants’ experiences showed that landing grants often depends less on one’s impact in the community and more on whom one knows. One grassroots leader shared, “Unfortunately, it often feels like you won’t get a response from local and big funders unless you have connections, despite my decades of experience in this field.”

Grantee burden: Lengthy grant applications and reporting requirements also create an unequal burden for grassroots nonprofits. Larger organizations can distribute operational responsibilities across many teams. For smaller nonprofits (like the ones most women of color lead), grant writing and fundraising are just two tasks among running programming, operations, and financial management that often fall on one or two individuals.

One-year restricted grants: Short-term grants deepen the challenge for smaller teams, requiring leaders to perpetually reapply for the next year’s funding. Even if the organization is granted resources, restricted funding limits how the money can be used, preventing the nonprofit from allocating it where it’s most needed.

When access to funding hinges more on who you know or how much time you have, rather than on the depth of your impact, the system is designed to exclude those without such resources. This inequity falls hardest on women of color nonprofit leaders.

Funders can better support women of color nonprofit leaders

Nonprofit leaders of color are looking for funders to invest not just in their work but also in their well-being. Our research shows that grassroots organizations’ sustainability is inextricably linked with their leaders’ well-being. Long-term change requires investments in both areas.

Wellness support: Foundation leaders interviewed for the report acknowledged attrition and burnout among women of color leaders; however, wellness supports remain rare. Nonprofit leaders in our focus group wanted support for staff wellness and well-being, including mentorship and coaching. Our research has also found that funding sabbaticals and wellness stipends can offer meaningful support.

Long-term general operating support: Removing funding barriers can also alleviate some of the stress of keeping an organization afloat. Multiyear, unrestricted grant agreements, with built-in cost-of-living adjustments, would allow leaders to make more predictable long-term financial plans and apply funding where their expertise indicates it should go. Reducing reporting requirements and accepting information through conversations or voice memos could save grantees time.

Capacity building: Nonprofit leaders also suggest that foundations consider funding or providing capacity-building support. This reduces the burden of the many specialized tasks leaders of small organizations have to juggle on their own.

The future of the sector depends on equitable grantmaking practices

Many long-time women of color leaders are approaching retirement. The next generation is watching, though with reluctance to step in and inherit under-resourced organizations.

Nonprofit burnout doesn’t have to be the cost of leadership. While this challenge is a symptom of systemic flaws, as with any other structural issue, we can implement a new design. The future of nonprofit-led change depends on reimagining philanthropic practices, and the leaders who have long driven social change deserve to see that transformation in their lifetimes.

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