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Philanthropy This Week

This newsletter featured a roundup of the most important news, opinion, tools, and resources of the week. The last issue ran on May 31, 2025 and was replaced by Need to Know This Week.

January 25, 2025
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From: Marilyn Dickey

Subject: How Will Foundations Respond to DEI Threats?

dei-backlash-cropped.jpg

Good morning.

The 2023 Supreme Court decision that affirmative action in college admissions is unconstitutional put a chill on DEI efforts in the business and nonprofit worlds, too. Companies like Walmart, Lowe’s, and J.P. Morgan have stepped away from DEI efforts, while public universities in several states stopped requiring applicants for faculty jobs to explain how they would advance DEI in their teaching and research.

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dei-backlash-cropped.jpg

Good morning.

The 2023 Supreme Court decision that affirmative action in college admissions is unconstitutional put a chill on DEI efforts in the business and nonprofit worlds, too. Companies like Walmart, Lowe’s, and J.P. Morgan have stepped away from DEI efforts, while public universities in several states stopped requiring applicants for faculty jobs to explain how they would advance DEI in their teaching and research.

Would foundations follow suit? That’s what Alex Daniels sought to find out in a story in our January issue.

The idea of philanthropic freedom — which conservatives have embraced in terms of donors being able to choose where to give — will be severely tested by lawsuits aiming to stop grants going to people of a particular race, Isabelle Leighton, executive director of the Donors of Color Network, told Alex.

Diversity programs were encouraged during the Biden administration. One group counted 500 examples of DEI policies in federal agencies. But those days abruptly ended when Trump entered the White House.

The two sides of the issue hold strong contrasts, with Jonathan Butcher of the conservative Heritage Foundation saying DEI programs are discriminatory because they push favoritism based on race but Fred Blackwell of the San Francisco Foundation saying they are meant to right historical wrongs.

It’s understandable under the circumstances if some foundations choose to stop mentioning race in their work, Blackwell told Alex, but those involved in racial justice work need to keep up the fight.

Organizations continuing to move forward on DEI include the Bridgespan Group, which is working to keep diversity efforts in the spotlight, and the Kresge Foundation, which has announced a three-year “diversity, equity, inclusion, and justice” fellowship program to prepare leaders for the challenges ahead.

Other highlights from this week:

  • The future of donor-advised funds may encompass everyday donors, if advocates have their way. Some DAF sponsors have been offering accounts at a low cost or even eliminating minimums to open an account, reports Drew Lindsay. Some envision banks someday offering customers checking, savings, and DAF accounts or employers providing DAF accounts as a perk. It’s unclear if those efforts will succeed, but critics who are already worried that DAFs are hurting nonprofits by warehousing money earmarked for charity are raising concerns.
  • In our Opinion section, Lisa Pilar Cowan of the Robert Sterling Clark Foundation says nonprofits should take a pandemic-like approach to the new Trump administration, as it did during the first one, though she emphasizes that the nonprofit world faces new challenges this time around. But it’s possible to use lessons learned in 2020 as nonprofits and foundations face another period of uncertainty and upheaval.
  • Also in Opinion, law professor Darryll K. Jones explains why the “nonprofit killer bill” is actually better for nonprofits than the existing law.
  • Our 16 People to Watch in 2025 list includes people moving up into new roles, leading in troubled times, and redefining the future. George Anders lists some familiar names but even more emerging leaders.

— Marilyn Dickey, Senior Editor, Copy


Webinars

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    Today: February 6 at 2 p.m. ET | Register Now

    Corporations provide many forms of valuable support to nonprofits. Join us for Unlocking Corporate Grants and Partnerships where you’ll learn how — and why —businesses partner with nonprofits, what they look for in potential collaborations and grantees, and how to engage employees in ways that help your organization and deepen ties with companies.
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    Today: Thursday, February 27 at 2 p.m. ET | Register Now

    Crafting donor thank-yous that deepen ties with supporters requires more than strong writing skills; it takes an understanding of donor motivations. Join us for The Psychology of Thanking Donors Well to learn about new research into what makes donors feel valued. Our speakers will explain how to analyze your donor communications, use language that resonates with donors, and increase giving to your cause by taking your thank-yous to the next level.

More News, Advice, and Opinion

  • Donor Revolt.jpg
    Major Gifts

    The Donor Revolt May Be Behind Us, but Fundraisers Can Expect Tensions, Dust-Ups

    By Rasheeda Childress
    Conflicts between donors and nonprofits become more noticeable in increasingly polarized times.
  • The U.S Capitol Building
    Legislation

    Coalition Will Fight New Taxes on Nonprofits

    By Ben Gose
    Dozens of nonprofit associations have come together as the broader tax-exempt sector prepares for increasing scrutiny.
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    Giving

    Donors More Optimistic About Economy, Survey Finds

    By Sara Herschander
    Just weeks after the presidential election, everyday charitable donors are expressing newfound economic optimism — but that confidence hasn’t translated into plans for increased giving.
  • La June Montgomery Tabron, the W.K. Kellogg Foundation's first woman and first Black CEO poses for a photo, Tuesday, Jan. 14, 2025, in Scottsdale, Ariz.
    Q&A

    Kellogg Foundation CEO Shares Her Life Story to Foster Racial Healing

    By Glenn Gamboa, Associated Press
    La June Montgomery Tabron believes many Americans have a desire for racial healing. They just don’t know how to start.
  • Thomas Tighe, president and CEO of Direct Relief, stands for a photo at its headquarters in Santa Barbara, Calif., Friday, Dec. 20, 2024. (AP Photo/Jae C. Hong)
    Q&A

    Thomas Tighe Reflects on 24 Years Leading the International Health Nonprofit Direct Relief

    By Gabriela Aoun Angueira, Associated Press
    Tighe helped transform its operations, embracing technology and courting corporate partners, guided by the idea that a nonprofit health venture could and should run as efficiently as a commercial one.

WHAT WE’RE READING ELSEWHERE

Trump Administration

Corporations and nonprofits are reacting anxiously to an executive order from President Donald Trump attacking diversity, equity, and inclusion efforts. In addition to banning DEI work in federal agencies and among contractors, the order directs each federal agency to identify “‘up to nine potential civil compliance investigations’ that could include publicly traded corporations, nonprofits, and large foundations, among others.” Civil rights lawyers and experts on inclusion say programs “that give employment benefits, like jobs or promotions, to specific groups on the on the basis of their race” are most vulnerable, while safer programs likely include “unconscious bias training and fellowships or retreats that are dedicated to advancing employees of color, but are open to anyone’s participation.” (New York Times)

Nonprofits raced to help refugees settle in the U.S. in the final months before Trump’s inauguration. Anticipating that Trump would shut down or severely curtail the entry of refugees, agencies worked in coordination with federal officials and those who had volunteered to host newcomers as part of the U.S. Welcome Corps. About 30,000 refugees, who go through a lengthy process different from that for asylum seekers, arrived in the country in the last quarter of 2024, compared with 11,000 during the entire final year of Trump’s previous term. (Associated Press)

Billionaire Michael Bloomberg’s philanthropy is stepping in to help fund the United States’s annual contribution to the UN’s main climate body after President Donald Trump pulled out of the Paris climate agreement upon taking office this week. Unnamed other funders will join Bloomberg Philanthropies, which did not say how much it will contribute. Last year, the United States’s required contribution was $7.4 million. In a statement, Bloomberg, who is a UN special envoy on climate change, said he would work with state and local governments and businesses “to ensure that the U.S. stayed on track with its global climate obligations.” (Reuters)

A New York City nonprofit that provides a safe space for drug use faces an uncertain future as the new administration takes office. OnPoint NYC says it has reversed more than 1,700 overdoses since it launched in 2021. Still, researchers are split on the harm-reduction approach, and sites such as OnPoint exist in a legal gray area. It could now be at the mercy of a new corps of politicians and prosecutors ready to use the punitive tactics of the war on drugs. (Stat)

More News

A tweak in 2023 to Google’s advertising rules has nonprofits struggling to be seen on the search engine and, in some cases, taking major hits on donations. When the search giant began allowing advertisers to use other organizations’ trademarks, citing its efforts to comply with EU law, smaller search engines flooded Google’s automated ad auctions, often outbidding charities, and then using those charities’ trademarks to draw traffic. These advertisers sometimes mislead users into thinking they will be directed to a charity’s website, when in fact a click takes users to that search engine. Meanwhile, some charities either deplete their ad budgets outbidding these search engines or give up trying. (New York Times)

GoFundMe appeals have raised huge sums for the victims of the Los Angeles fires, but the varying success of its many campaigns underlines the inequities of crowd-funded aid. Research has repeatedly shown that campaigns for people who are better off are more successful, thanks largely to their networks of people who can afford to make generous donations. Meanwhile, “the government and insurance companies are increasingly either unable or unwilling” to step into the assistance role played by these platforms during a crisis. (Guardian)

NEW GRANT OPPORTUNITIES

Your Chronicle subscription includes free access to GrantStation’s database of grant opportunities.

Community Sustainability: The Partners for Places grant program, hosted by The Funders Network, aims to enhance local capacity to build equitable and sustainable communities in the United States and Canada. The grants support partnerships between a local government sustainability or water department, a frontline community partner, and a place-based funder for the planning and implementation of equitable climate action or green stormwater infrastructure projects that address frontline community priorities. Grants range from $45,000 to $100,000 for one-year projects and $75,000 to $150,000 for two-year projects; application deadline February 28.

Social Impact: Draper Richards Kaplan Foundation (DRK) is a global venture philanthropy firm supporting early-stage social impact organizations solving the world’s biggest social and environmental problems with bold, scalable approaches. Support is primarily provided in Africa, Europe, India, and the United States, although projects in Latin America and Israel may be considered in select situations. DRK seeks social entrepreneurs with dynamic products or services that have a proven ability to positively impact the lives of underserved people. Grants up to $300,000 over three years.

Marilyn Dickey
Marilyn Dickey is senior editor for copy at the Chronicle of Philanthropy.
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