When most people hear the word *infrastructure*, they think of roads, bridges, water systems, and broadband networks. Policymakers debate infrastructure spending. Communities celebrate new construction projects. Federal and state governments invest billions of dollars to repair aging physical assets.
But there is another form of infrastructure that receives far less attention—despite being just as critical to the health and stability of our communities.
It is the network of community development corporations, neighborhood nonprofits, faith-based organizations, workforce programs, health initiatives, youth-serving agencies, and community centers that connect people to opportunity.
These organizations are infrastructure.
And many of them are in crisis.
Recent data from Candid paints a troubling picture of nonprofit financial health. According to a May 2026 analysis, more than one-third of nonprofits ended 2024 operating at a deficit—the highest level recorded in the past decade. At the same time, organizations continue to face rising demand for services while navigating an increasingly uncertain funding environment.
The findings should concern anyone who cares about the future of Black communities.
Because when community institutions become financially unstable, the consequences extend far beyond organizational balance sheets.
## Community Organizations Hold Communities Together
For decades, Black communities have relied on local institutions to fill gaps left by disinvestment and systemic inequities.
Community development corporations have revitalized neighborhoods and developed affordable housing. Nonprofits have connected families to food, healthcare, and educational opportunities. Faith-based organizations have provided social support and civic leadership. Workforce organizations have helped residents access jobs and career pathways.
These institutions do more than deliver services.
They build trust.
They cultivate leadership.
They organize residents.
They advocate for resources.
They preserve community knowledge.
In many neighborhoods, they serve as the connective tissue that helps communities function.
Yet despite their importance, they are often funded as though they are temporary projects rather than permanent community assets.
## We Maintain Buildings Better Than We Maintain Institutions
Imagine a city announcing that it plans to stop maintaining its roads.
Residents would be outraged.
No one expects a bridge to last indefinitely without repairs. No one assumes a water system can operate without investment. We understand that physical infrastructure requires ongoing maintenance and capital.
Yet community organizations are frequently expected to solve society’s most complex challenges with limited administrative support, inadequate operating reserves, and funding restrictions that prioritize programs over organizational sustainability.
Many funders are willing to pay for services but reluctant to invest in the systems, staff, technology, leadership development, and financial reserves required to sustain those services over time.
The result is predictable.
Organizations become trapped in a cycle of survival.
Leaders spend increasing amounts of time chasing grants instead of building long-term strategies. Staff burnout increases. Innovation slows. Capacity erodes.
Eventually, some organizations disappear altogether.
## The Cost of Organizational Failure
When a road deteriorates, we can see the damage.
When a nonprofit struggles, the warning signs are often less visible.
But the consequences can be just as significant.
When community organizations close their doors, communities lose relationships that may have taken decades to build. They lose institutional knowledge about neighborhood priorities. They lose trusted messengers who understand local challenges. They lose advocates who know how to navigate systems and secure resources.
The loss is not simply organizational.
It is communal.
And in Black communities, where many organizations have historically stepped in to address gaps created by discrimination and underinvestment, the impact can be particularly severe.
The closure of a community institution often leaves behind a vacuum that is difficult—if not impossible—to replace.
## A Different Way to Think About Community Investment
If community organizations are infrastructure, then we must begin funding them like infrastructure.
That means moving beyond short-term thinking.
It means investing in organizational capacity, not just programs.
It means helping organizations build reserves and strengthen their balance sheets.
It means supporting collaborative models and shared services that reduce administrative burdens.
It means creating pathways for community organizations to own assets, participate in real estate development, access capital markets, and build long-term wealth.
Most importantly, it means recognizing that community institutions are not expenses to be managed—they are assets to be strengthened.
For years, conversations about community development have focused primarily on physical development. We have measured success by buildings constructed, streets improved, and projects completed.
Those investments matter.
But strong communities require more than physical infrastructure.
They require institutions capable of connecting people to opportunity, responding to crises, and leading neighborhoods through change.
## The Infrastructure We Cannot Afford to Lose
America would never allow its bridges, highways, or water systems to deteriorate without concern.
Yet every day we ask community organizations to carry enormous responsibilities while providing limited support for their long-term sustainability.
The hidden infrastructure crisis in Black communities is not about concrete, steel, or asphalt.
It is about the institutions that hold communities together.
And if we are serious about building stronger neighborhoods, expanding opportunity, and creating lasting change, we must start treating those institutions as the infrastructure they have always been.
**Source referenced:** Candid, “Nonprofit Financial Instability” (May 2026), which reported that more than one-third of nonprofits ended 2024 with operating deficits and highlighted increasing financial pressures across the sector. [oai_citation:0‡candid.org](https://candid.org/blogs/nonprofit-financial-instability/?utm_source=chatgpt.com)
With more than two decades of experience in community development, real estate strategy, and organizational leadership, Joy Johnson brings a seasoned, solutions-focused voice to the field. She is committed to helping communities and institutions avoid systemic pitfalls and build models that truly work. To reach Joy call (216) 238-2235.