July 10th 2023.
Color of Change has recently been met with financial struggles. After Business Insider reported that the organization was under about $4 million, Color of Change had to take drastic measures and laid off 49 staff members in an effort to cut back on spending. This was the third round of layoffs since the spring, and according to Board Chair of the Color of Change Education Fund, Andre Banks, the organization's budget was "too ambitious."
Salaah Muhammad, a former regional manager, raised questions about the organization's spending practices, noting that the organization seemed to be interested in throwing "an elaborate party" rather than creating a more humane and less hostile place for Black people. Business Insider's investigation revealed that millions of dollars had been spent on executive salaries, high-profile events, consultants, and other projects from 2017 to 2019, resulting in a $9.7 million deficit.
In response to Business Insider's report, the Color of Change board members spoke out on Medium in which they said the organization had "instituted new systems to proactively address emerging financial challenges." The organization also made a statement on their website in which they revealed that some of their staff had unionized. They stated that they were proud of the support for the staff and have done everything in their power to expedite the bargaining process.
Unfortunately, the staffing cuts did not sit well with some. A staffer identified as R. Nicole on Twitter accused the organization of "Color Of Capitalism" after the layoffs. It remains to be seen how Color of Change will manage its finances in the future, but one thing is for sure: the organization has taken steps to ensure they are fiscally responsible going forward.
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