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Scholars have meticulously documented the experiences of Black-led nonprofits in the Deep South during the Civil Rights Movement and their efforts to overcome an overt system of racial discrimination. More than a half century after the movement, organizations are now tasked with navigating a purportedly race-neutral society whose racial structure is covert. Despite the structural nature of racism, we know little about how contemporary Black-led organizations (BLOs) in the Deep South identify, understand, and ultimately challenge racism in the nonprofit sector. Drawing upon 16 months of qualitative data in Montgomery, Alabama, including interviews with 40 BLOs and observations, this paper examines how Black-led organizations in the Deep South develop a schematic view of racism within the nonprofit sector. Applying a cultural schema theoretical framework, I show how Black-led led organizations develop a socially shared understanding of the representational character of racism that automatically prompts action around strategies used to counter its effects.