The Changing Landscape of DEI in Philanthropy

Over the past decade, philanthropy has seen a major shift toward diversity, equity, and inclusion (DEI), with many funders pledging to support underrepresented communities and address systemic inequities.

However, as economic pressures rise and political debates intensify, some are questioning whether DEI remains a priority in nonprofit funding.

Reports indicate that while some foundations remain committed to equity-based grantmaking, others are quietly scaling back DEI funding (Council on Foundations, 2024).

This raises a crucial question: Is philanthropy still prioritizing DEI, or are funders retreating from their commitments?

How DEI Became a Priority in Philanthropy

Following movements like Black Lives Matter and calls for racial justice in 2020, major philanthropic organizations pledged billions toward DEI initiatives.

Funders such as MacKenzie Scott, Ford Foundation, and Open Society Foundations committed significant resources to equity-focused programs.

Key milestones that drove DEI funding:

• 2020-2022: Foundations pledged over $11 billion toward racial equity initiatives (Candid & ABFE, 2023).

• 2023: Calls for transparency and accountability in DEI funding intensified as nonprofits demanded sustained, long-term support rather than one-time grants (Stanford Social Innovation Review, 2023).

• 2024: Some funders began quietly shifting away from DEI commitments, citing donor fatigue, political backlash, and economic constraints (Philanthropy News Digest, 2024).

Are Funders Backing Away from DEI?

Despite early momentum, recent trends suggest that some funders are scaling back DEI funding due to various factors:

1. Economic Pressures & Shifting Priorities

Inflation and economic downturns have led some grantmakers to reallocate funds toward general operational support rather than DEI-specific programs (Nonprofit Quarterly, 2024).

Many nonprofits now compete for a shrinking pool of equity-based funding.

2. Political & Legal Challenges

DEI has become a political flashpoint, with some states enacting laws restricting DEI programs.

Foundations operating in conservative-leaning regions face pressure to scale back funding for racial equity programs to avoid political backlash (Council on Foundations, 2024).

3. “One-and-Done” Philanthropy

Some funders consider their DEI pledges fulfilled.

Research suggests that a portion of funders made short-term equity grants in response to 2020 activism but have not embedded DEI as a long-term funding priority (Philanthropy News Digest, 2024).

Who’s Still Prioritizing DEI in Philanthropy?

While some funders are retreating, others remain deeply committed to DEI.

MacKenzie Scott has pledged another $2 billion to DEI-focused organizations in 2025, showing that equity-driven giving is far from dead (Forbes, 2025).

Other funders leading the way:

• Ford Foundation: Continues its Build Program, funding racial equity and disability inclusion efforts.

• W.K. Kellogg Foundation: Prioritizing economic justice and education equity.

• Open Society Foundations: Investing in global human rights and racial justice movements.

• Community Foundations: Many local grantmakers are stepping up to fill gaps in DEI funding.

How Nonprofits Can Secure DEI-Focused Grants

Despite challenges, nonprofits can take proactive steps to sustain funding for DEI initiatives:

1. Strengthen Data & Impact Reporting

Funders increasingly demand measurable impact.

Nonprofits must demonstrate:

• How their DEI initiatives lead to tangible community outcomes

• Quantifiable success metrics (e.g., increased BIPOC leadership, improved service access)

• Compelling storytelling backed by hard data

2. Diversify Funding Streams

Relying on one source of funding is risky.

Nonprofits should:

• Expand to corporate sponsorships and impact-driven investors

• Apply for community-based grant programs that prioritize local impact

• Seek individual donors aligned with DEI missions

3. Leverage Strategic Partnerships

Collaboration strengthens funding opportunities.

Nonprofits can:

• Partner with universities, community organizations, and advocacy groups

• Apply for joint grants that support intersectional DEI projects

• Engage funders in long-term relationships, ensuring multi-year commitments

Final Thoughts: The Future of DEI in Philanthropy

While some funders are pulling back, others remain committed to advancing DEI.

Nonprofits must adapt by demonstrating impact, diversifying revenue streams, and building strong funder relationships.

DEI funding isn’t disappearing, but evolving.

Organizations that prioritize strategic funding approaches will be best positioned to sustain equity-driven work.

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Sources & References:

• Candid & ABFE. (2023). Tracking Racial Equity Commitments in Philanthropy. Retrieved from https://candid.org/

• Council on Foundations. (2024). The Future of DEI in Philanthropy. Retrieved from https://cof.org/

• Forbes. (2025). MacKenzie Scott’s $2B Commitment to DEI Funding. Retrieved from https://www.forbes.com/

• Nonprofit Quarterly. (2024). How Economic Downturns Impact DEI Funding in Nonprofits. Retrieved from https://nonprofitquarterly.org/

• Philanthropy News Digest. (2024). Are Funders Backing Away from DEI? Retrieved from https://philanthropynewsdigest.org/

• Stanford Social Innovation Review. (2023). From One-Time Grants to Long-Term DEI Commitments. Retrieved from https://ssir.org/