In recent times, the U.S. philanthropic sector has confronted an more and more difficult and polarized political panorama. Fairness initiatives are experiencing elevated scrutiny, with a rising variety of political and authorized threats to the work of nonprofits and foundations alike. This fall, the Analysis staff on the Heart for Efficient Philanthropy (CEP) got down to research how the present political local weather is affecting the work of U.S.-based nonprofits and foundations — together with the funding of racial fairness work.
The findings shared on this submit are primarily based on responses from 241 nonprofits and 243 foundations between August and October 2024, representing a snapshot of their views throughout this time interval.
Uncertainty, Polarization, and a Shifting Authorized Surroundings
Nearly all of U.S. primarily based nonprofits and foundations notice their work has been affected by the nation’s political local weather.
About two thirds of each U.S.-based nonprofits and basis leaders report their group’s work has been affected by the U.S. political local weather in 2024. Nonprofits most ceaselessly point out that uncertainty associated to the 2024 U.S. presidential election and political polarization have affected their work. Political polarization represents essentially the most widespread concern amongst foundations, with current judicial rulings and uncertainty in regards to the consequence of the U.S. presidential election not far behind (see Determine 1).
“We’re working to search out language that doesn’t compromise our values however higher communicates with members of the group about what we’re working to perform with our organizational efforts,” mentioned one nonprofit chief of their response to CEP’s survey.
A couple of third of nonprofits and foundations report making modifications to their work in response to the present political local weather. One nonprofit chief cited their group’s shift to “specializing in offering assets to assist grassroots advocates raise their very own voices extra successfully to policymakers,” whereas one other nonprofit chief described conducting “extra training and outreach to remind people of the historic context of cross-racial and cross-group collaboration, versus the extreme polarization we see now.”
Among the many foundations that present examples of modifications to their work, some point out rising their assist of efforts to strengthen democracy and bridge ideological divides. “We’re doubling down on convening, different types of civil society work, and constructing initiatives that contain various individuals,” mentioned one basis chief.
Racial Fairness: Foundations Categorical Concern
Most foundations categorical a point of concern that peer foundations will retreat on racial fairness efforts within the close to future.
Nearly all of basis leaders — 77 % — are involved that their friends will retreat on racial fairness efforts within the close to future (see Determine 2). Basis leaders who determine as individuals of colour are reasonably extra more likely to report seeing this retreat presently occurring amongst foundations in comparison with leaders who don’t determine as individuals of colour. They’re additionally barely extra more likely to categorical concern about foundations retreating on these efforts sooner or later. As well as, leaders of colour are barely extra more likely to point out their basis funds social justice work.
When requested if their basis has encountered significant resistance to its personal racial fairness efforts in 2024, simply over 1 / 4 of basis leaders report experiencing resistance from numerous sources similar to their donors, their board of administrators, or the native authorities.
Of the inspiration leaders who shared their ideas on why others could also be retreating from offering racial fairness funding, almost half point out concern of backlash or a scarcity of real dedication to racial fairness as attainable causes. “For some funders, the preliminary push for advancing racial fairness was reactive and a bit performative — they dedicated verbally however weren’t totally ready or outfitted to do the work,” said one basis chief.
One other basis chief famous that “I feel these retreats are primarily based extra on concern than actuality. One or two threat averse trustees could turn out to be inclined to stress from anti-DEI forces locally and demand that employees soften their language or stance. We should inoculate our trustees and employees to those reprisals and double down on our good work, slightly than doing the work of these against a extra equitable world by backing off.”
A Pivotal Second
The present U.S. political local weather presents a pivotal second for foundations to step up and supply nonprofits with much-needed assist to navigate uncertainty and serve their communities. This analysis finds that each nonprofits and foundations are being impacted by the political local weather, and basis leaders are nervous their friends could pull again from funding racial fairness efforts transferring ahead. Our aim is to proceed gathering information over time to construct a deeper understanding of how the philanthropic sector responds to those complicated challenges.
Assets for Funders
The next assets could also be helpful for funders aiming to study extra about navigating funding choices within the present political local weather.
Elisha Smith Arrillaga, Ph.D. is vp, Analysis at CEP. Discover her on LinkedIn. Emily Yang is a senior analyst, Analysis at CEP. Discover her on LinkedIn.
CEP Analysis Snapshots are temporary, data-informed analysis publications designed to reply well timed, particular questions which are related to foundations. This weblog submit represents the work of CEP’s Analysis staff and consists of information collected in two surveys administered between August and October 2024. Discover details about the analysis methodology right here.
Editor’s Notice: CEP publishes a spread of views. The views expressed listed here are these of the authors, not essentially these of CEP.
