The murder of George Floyd in May 2020 sparked global protests against police violence and systemic racism, leading to increased pledges from corporations, foundations, and wealthy individuals to promote racial equity in the United States. However, concerns have emerged in the philanthropy and nonprofit sectors that support for communities of color has regressed significantly in recent years due to legal challenges to affirmative action and race-based grantmaking. Reliable data on donor actions regarding racial equity is scarce, but organizations like Candid have been working to track funding announcements and pledges related to racial equity.
Candid, a nonprofit formed in 2019 by the merger of Foundation Center and GuideStar, has been providing data and insights on funding for racial equity, documenting commitments that surged to $16.5 billion in 2020, dropping to $7.9 billion in 2021 but remaining above pre-2020 levels. However, an analysis by the Philanthropic Initiative for Racial Equity found that the actual amount of racial equity grants in 2020 was only $3.4 billion, with many donors slow to follow through on their commitments. The decline in commitments and grants has accelerated in 2022, with conservative backlash against perceived woke philanthropy and legal challenges to race-based initiatives raising concerns that funders may scale back support for racial equity work.
Candid has ceased updating its data on giving to racial equity, citing delays in IRS reporting of nonprofit tax filings. While efforts are underway to better understand funders’ attitudes and the quantity of their racial equity giving, surveys and informal research can only provide limited insights. The Center for Effective Philanthropy found that few foundation leaders planned to make changes to grantmaking in response to the Supreme Court’s affirmative action decision, while the Philanthropic Initiative for Racial Equity noted a regression from core racial justice values in recent months. Without comprehensive data, it is challenging to determine if enough funding is being directed to address racism and systemic inequities.
The absence of updated data on funding for racial equity makes it difficult to assess whether resources are being allocated effectively to drive real and sustained change. While some funders are actively addressing structural racism in their grantmaking and internal practices, others may be retreating from equity and justice language out of fear of potential threats. More funders are urged to embrace equity and justice as core values in their institutions and grantmaking, regardless of external pressures. Nonprofits working to combat racism and systemic inequities following George Floyd’s death may face challenges in securing the necessary resources to address these critical issues. Understanding and measuring funding for racial equity is essential for ensuring that resources are allocated effectively to bring about meaningful and lasting change.
