The nonprofit organizations in this study vary on a number of characteristics, including size and organizational age. About six in ten organizations (61%) are considered small (11-49 employees) or micro (10 or fewer employees) (Figure 8).

AA-led organizations are more likely than white-led organizations to be small or micro (68% of AA-led are small/micro versus 53% of white-led). Based on year of incorporation, the organizations have been in existence for, on average, 29 years (Figure 9).

The National Taxonomy of Exempt Entities (NTEE) system is used by the IRS to classify nonprofit organizations and is a way to look at the types of organizations in this study. The most common types of organizations were (Figure 10): Human Services (22%), Community improvement and capacity building (17%), and Education (12%)

The organizations display a range of financial characteristics, such as revenue (Figure 11).

The organizations display a range of financial characteristics, such as annual budget (Figures 12).

One difference between AA-led and white-led organizations is the availability of cash reserves. AA-led organizations are less likely to have cash reserves on hand: 32 percent have four or more months of cash reserves compared to 57 percent of white-led organizations (Figure 13).

* Cash reserves, or “rainy day funds,” are an important indicator of an organization’s long-term financial health. Such savings can be used to take risks, underwrite growth, or invest in organizational capacity beyond the use of existing funding streams. A lack of cash reserves may restrict a leader’s capacity for innovation as the organizational priority is to simply keep the lights on and meet payroll.

The sources of an organization’s funding also differ slightly between AA-led and white-led organizations. While government grants are the largest source of funding for both, they are a larger percentage for AA-led organizations (35% of funding from government grants, on average, versus 22% for white- led organizations). In fact, at over a third of AA-led organizations (35%) at least half of their current funding is from government grants; this is true at 21 percent at white-led organizations. White-led organizations reported more funding from national foundations than AA-led organizations, though it was a small amount (3.5%, on average at white-led organizations versus 1% at AA- led organizations) (Figure 14).