The murder of George Floyd in May 2020 sparked global protests against police violence and systemic racism, leading to increased commitments from corporations, foundations, and individuals to promote racial equity in the United States. However, there are concerns in the philanthropy and nonprofit sectors that support for communities of color has declined significantly in recent years, especially with legal challenges to affirmative action and race-based grantmaking. Data on donors’ efforts towards racial equity are scarce, but organizations like Candid are working to provide insights and analysis.
Candid, a nonprofit formed in 2019 through the merger of Foundation Center and GuideStar, has been tracking funding announcements and pledges towards racial equity. According to Candid, commitments for racial equity rose to $16.5 billion in 2020, dropping to $7.9 billion in 2021 but still above pre-2020 levels. However, a 2022 analysis by the Philanthropic Initiative for Racial Equity found that actual racial equity grants in 2020 were only $3.4 billion, indicating slow follow-through on commitments from donors.
The decline in commitments and grants for racial equity in 2021 and 2022 has been attributed to backlash from conservative groups against perceived “woke” philanthropy and legal challenges to race-based initiatives. Concerns have arisen that funders may scale back support for racial equity work to avoid lawsuits. Candid stopped updating its data on giving to racial equity in mid-2023, citing incomplete information from IRS Form 990s. Efforts are underway to understand funders’ perspectives and the extent of racial equity giving through surveys and informal research.
The Center for Effective Philanthropy found that few foundation leaders planned to change their grantmaking following the Supreme Court’s affirmative action decision, with some leaning into racial equity more deeply. However, there is a need for accurate data on actual grant dollars to nonprofits working on racial equity. The Philanthropic Initiative for Racial Equity conducted informal research in 2023 and 2024, concluding that there has been a regression in racial justice values in recent months. More funders are encouraged to prioritize equity and justice in their institutions and grantmaking.
Nonprofits addressing racism and systemic inequities following George Floyd’s death may struggle to secure funding without a clear understanding of the resources allocated towards racial equity. Without accurate measures of funding for racial equity, it is challenging to determine if there are enough resources to bring about lasting change. The sector may need to wait for federal tax filings and updated data to fully assess the evolution of funding for racial equity in 2023 and 2024.
