Policy Needs to Catch Up with the Reality of Black-led Social Enterprises

Across London, Black-led charities and social enterprises are driving social change, tackling systemic inequalities, and providing vital services for underserved communities. These organisations have the leadership, community trust, and innovative approaches needed to create lasting impact. Yet, despite their strengths, they face persistent barriers to funding, operational growth, and sustainability—barriers that policy change could help remove.

The insights presented here are drawn from the Resilience in Motion report, which provides a comprehensive assessment of Black-led charities and social enterprises in London. This research highlights systemic challenges in governance, financial sustainability, and operational capacity—challenges that demand urgent policy action to ensure these organisations can thrive.

Black-led Organisations are Resilient, but Policy Needs to Support Their Growth

Black-led social enterprises are deeply rooted in their communities, with strong mission-driven work that directly addresses pressing issues like youth development, mental health, education, and employment.

• Community Trust and Engagement: These organisations have earned the trust of the communities they serve, often reaching individuals that mainstream services struggle to support.

• Leadership with Lived Experience: With at least 75% of governance teams from Black and Global Majority backgrounds, these organisations are led by people who understand the challenges first-hand and can design culturally competent solutions.

• Commitment to Social Innovation: From launching social enterprises to exploring corporate partnerships, many organisations are looking beyond grants to create financially sustainable models—but they need support to do so at scale.

Yet, despite these strengths, Black-led organisations are being held back by outdated funding structures and inadequate policy support.

The Policy Gaps

Short-term and Restrictive Funding Models

• The majority of Black-led organisations rely on short-term, project-based funding, which leaves them financially vulnerable.

• Lack of unrestricted funding prevents them from investing in core costs, staff development, and long-term planning.

Structural Barriers in Access to Funding

• Many Black-led organisations struggle to access mainstream grant opportunities, often due to complex application processes and funder biases.

• Without intermediary grantmaking models, funds often fail to reach grassroots organisations that need them most.

Underdeveloped Organisational Infrastructure

• Despite strong community engagement, many organisations lack the operational capacity needed for growth, such as IT systems, HR structures, and leadership succession plans.

• Without support to professionalise governance and operations, they face challenges in scaling their impact.

Overreliance on Volunteers and Limited Staff Capacity

• Many organisations are heavily reliant on volunteers, leading to challenges in retaining talent and sustaining long-term programmes.

• Workforce development policies are needed to provide training, leadership development, and fair compensation for those driving community-led impact.

These gaps aren’t about capability—they’re about systemic barriers that policy change could help remove.

Policy Recommendations

To truly unlock the potential of Black-led charities and social enterprises, policymakers must shift from short-term fixes to long-term solutions.

1. Expand Access to Unrestricted and Multi-year Funding

• Introduce multi-year funding models for Black-led organisations to promote long-term sustainability.

• Increase unrestricted funding so organisations can invest in core costs, staff retention, and infrastructure.

• Support intermediary grantmaking to ensure funding reaches grassroots organisations, rather than being absorbed by larger charities.

2. Invest in Organisational Capacity Building

• Launch tailored governance and leadership training programmes for Black-led organisations to strengthen board effectiveness and succession planning.

• Provide funding for technology, HR systems, and financial management support to enable long-term growth.

• Support peer-to-peer learning networks that facilitate knowledge-sharing among Black-led organisations.

3. Create Pathways for Income Diversification

• Establish social enterprise funding streams to help organisations move beyond grant dependency.

• Support Black-led organisations in securing public sector contracts, ensuring supplier diversity policies include them.

• Facilitate corporate partnerships that provide investment, training, and mentorship for Black-led social enterprises.

4. Reform Workforce and Leadership Development Policies

• Fund fellowship and mentorship programmes to develop the next generation of Black social enterprise leaders.

• Provide capacity-building grants for paid staff roles, reducing reliance on volunteers.

• Introduce leadership succession planning grants to ensure sustainable transitions within organisations.

The Time to Act is Now

Black-led organisations aren’t just filling gaps in the system—they’re actively creating new models of social change. But without structural policy change, they will remain underfunded, under-supported, and undervalued.

• If policymakers are serious about equity in the charity and social enterprise sector, they must take action.

• If funders want to see true impact, they must shift to long-term, unrestricted funding models.

• If we want to build a stronger, more inclusive society, we must ensure Black-led organisations have the resources they need—not just to survive, but to thrive.

This is not just a funding issue—it’s a policy issue. And it’s time to change it.

Policymakers, funders, and decision-makers—what steps will you take to support Black-led organisations? Let’s start the conversation.