HISPANIC FEDERATION CONVENES NONPROFIT STAKEHOLDERS TO DISCUSS THE STATE OF LATINO NONPROFITS, RELEASES GRANTMAKING REPORT DETAILING IMPACT AND NEED FOR FUNDING
For Immediate Release: February 29, 2024
Contact: media@hispanicfederation.org
Washington, DC – Hispanic Federation (HF), the nation's premier Latino nonprofit membership organization, held its first State of Latino Nonprofits event in Washington, D.C. The convening brought together philanthropists, government officials, nonprofit and corporate sector leaders to discuss the state of Latino nonprofits in the United States and how stakeholders can work together to continue building the capacity of nonprofits.
In the past four years, nonprofit organizations have been instrumental in serving their communities during the COVID-19 pandemic, providing emergency services to an influx of migrants in desperate need, and serving vulnerable community members as food and housing costs are on the rise. Yet, considerable funding gaps remain for these essential organizations.
During the event, Hispanic Federation released a report detailing how HF's more than $32.4 million in grantmaking kept 534 organizations afloat since the start of the COVID-19 pandemic. This grantmaking helped organizations build capacity to provide much-needed services to 5.5 million Latinos in the United States during and after the height of the COVID-19 pandemic. The report, entitled Meeting the Moment: Latine CBOs' Response to COVID-19, also outlines strategic investments that were made in areas such as immigration, LGBTQ+ empowerment, healthcare, and more to serve a variety of communities. Finally, the report details the state of Latino nonprofits after the height of the pandemic and how the long-term funding prospects for Latine-based organizations remain uncertain.
Specifically, early in the pandemic many Latine and other community of color nonprofits faced decreased grant funding due to uncertainty in the economy and a delay in government response. A 2020 report from the Building Movement Project, in which one-third of participating nonprofits were Latine, found that half (51%) increased their direct services while 37% reported a decrease in grant funding during the early days of the pandemic. In short – Latine-serving nonprofits delivered more services with less funding to serve their communities.
Shortly after, at the height of the pandemic, according to the Forbes Nonprofit Council, charitable giving was high in 2020 and 2021 – especially corporate giving during the pandemic. These trends were short lived as charitable and corporate giving declined in 2022. Additionally, according to the Independent Sector, the number of donors and donor retention has decreased since the beginning of 2022 by 7% and 4.5%, respectively. This decrease in funding – and the fact that only 2% of all foundation funding goes to Latine-serving institutions – raises concerns about the ability of nonprofits to meet the needs of the 62 million Latinos in the U.S.
"2024 is pivotal for the nonprofit sector, the U.S. economy, and our democracy. That's why we must take stock of the unprecedented efforts that kept hundreds of organizations afloat in the last four years. Our report not only offers a look back, but it also offers a path forward on how the philanthropic sector can work with Latine-serving CBOs to build the capacity needed to provide services for our communities," said Frankie Miranda, president and CEO of Hispanic Federation. "We hope this report sparks a conversation about closing the funding gap faced by our community, and we remain committed to investing in our member agencies and their services that thousands of Latinos rely on."
Among other highlights, the report details the need for organizations to receive unrestricted funding that allows them the flexibility to use funds where the community needs it most, the importance of making strategic investments that build capacity and infrastructure, and the role that cultural competency plays in grantmaking. The report also notes that, while the Latine population continues to grow, the funding available to nonprofit organizations has not kept pace with that growth.
These concerns are underscored by a 2022 survey by the Nonprofit Finance Fund (NFF), which revealed that the three most significant challenges faced by COC-led organizations are achieving long-term financial sustainability (73%), raising funds that cover the full costs of their work (66%), and raising unrestricted funds (65%). HF's report concludes that Latine-led organizations still face the same challenges in 2024.
With the State of Latino Nonprofits convening, HF hopes to work with funders and other stakeholders to continue the momentum of charitable giving experienced during the pandemic to continue empowering and supporting Latino nonprofits nationwide.
After the presentation, leaders of the corporate and nonprofit sector participated in a panel hosted by Sara Miller, Director of Philanthropy for the Miranda Family Fund. During the discussion, partners and grantees discussed their experience working with Hispanic Federation, the impact of this partnership, and how the funding was used to meet the various needs of community members across the U.S.
"In unity lies strength. At El Centro Hispano, we are honored to join this initiative alongside the Hispanic Federation. Together, we amplify our voices, magnify our impact, and forge a path towards a more equitable future for Latino nonprofits and the communities they serve," said Pilar Rocha-Goldberg, CEO of El Centro Hispano.
ABOUT HISPANIC FEDERATION
Hispanic Federation (HF) is a nonprofit membership and advocacy organization, founded in 1990, committed to empowering and advancing the Hispanic community, with a focus on low-income, marginalized and immigrant Latinos. With programs in 40 states, Puerto Rico, the U.S. Virgin Islands and the District of Columbia, HF’s focus areas include immigration, economic empowerment, civic engagement, disaster relief, philanthropy, education, health, and the environment. HF also maintains ongoing public education campaigns and meets the organizational development needs of its member agencies through grant-making and capacity-building assistance.
