Giving Tuesday, the unofficial kickoff of the season of giving, encourages people to lead with generosity, giving their money, time and resources to support and amplify the causes and nonprofit organizations they believe in.
Americans gave a total of $557.16 billion in 2023 and donations totaled $3.1 billion in this 24-hour period alone, an increase of 0.6% from 2022. This giving season is a perfect time to reflect on how diversity, equity and inclusion (DEI) efforts have evolved in philanthropy since the George Floyd racial reckoning of 2020 and how donors can advance equality and opportunity for people of all races and backgrounds by applying a true diversity lens to their grantmaking.
After the murder of George Floyd advocates for DEI in philanthropy used the Giving Tuesday holiday to push grantmakers to direct grants toward Black, Indigenous, and People of Color (BIPOC) led organizations. This joined calls at the time for foundations to shift their missions to embrace racial justice philanthropy and implement organizational changes such as diversity quotas for boards and nonprofit leadership, tracking racial demographics of staff and pushing diversity data collection fraught with legal and privacy landmines.
This year, DEI in philanthropy is receding following the Supreme Court striking down affirmative action in admissions in elite colleges last year. At the time, a chorus of nonprofit voices expected the worst outcomes for racial minorities. Some leaders called on grantmakers to join them in defiance of the Supreme Court’s decision. To their chagrin, foundations are responding to the possible legal action against racially based programs—that are likely discriminatory and illegal—by toning down, scaling back or completely eliminating them. This follows retrenchment by private companies and academic institutions.
This is a needed course correction from even well-intentioned DEI efforts. Philanthropy is refocusing on organizational missions and embracing our societal core value of equality (equality of opportunity and equal treatment under the law) over equity.
Avoid HR pitfalls
Selecting individuals for hire based on race to pursue equity goals is not just unethical; it’s illegal. Organizations open themselves up to legal exposure in doing so. As BrightSide employment lawyer Stephanie Holmes explained in the Roundtable’s True Diversity Toolkit for Employers, “It is a violation of discrimination laws to take an applicant or employee’s protected characteristic into account—even if the hiring manager has good intentions and even if the company is trying to increase diversity.”
Grantmakers assemble the teams and leadership to best advance their missions. Check-the-box hires and appointments do not guarantee the prospective diversity that fosters robust discussions, generates new ideas or better serves communities. Donors should not be bullied into shaping their hiring and board appointment decisions around societal pressure.
Effect change through equality of opportunity
Racial justice philanthropy is not the only means to empower individuals and uplift communities. Donors should not feel pressured to give to racially focused organizations or minority-led groups to address chronic issues like homelessness and unemployment. As we discuss in our Opportunity Playbook, by investing in “poverty alleviation, education and workforce development, philanthropists can maximize opportunity by helping people achieve greater economic independence, security and mobility.”
This benefits people of all backgrounds in a neutral way. The weakness of diversity data collection efforts is they overlook grantmaking not specifically tagged as racial justice or serving particular communities. Foundations and donors have a long history of investing in communities of color.
Be careful with race-specific grants
Race-specific grantmaking is now also under the microscope. They may be well-intentioned. However, showing preferential treatment to a group of individuals based on race or skin color is exactly what the Supreme Court found unacceptable in higher education. That assessment could apply to scholarships, jobs and funding competitions.
Ed Blum leads the American Alliance for Equal Rights, the organization that filed various lawsuits challenging DEI in higher ed and grantmaking, including one lawsuit against an Illinois scholarship fund for teachers from specific racial minority groups. Blum called “race-exclusive” programs “divisive and illegal.” He suggested instead these opportunities “be stopped and opened to everyone, regardless of their race.” As more race-specific grants are challenged, grantmakers may be nudged to seek out different ways to achieve the ends they seek.
During this Season of Giving, as we think about how our contributions can truly have most impact for all Americans, we should remember superficial diversity measures are not mission-critical and DEI grantmaking could be fraught with pitfalls. True diversity frees grantmakers to advance effective solutions for communities that need them most.
Philanthropy Roundtable’s True Diversity initiative is an equality-based, holistic framework for embracing diversity. It values every person as a unique individual and empowers charitable organizations with the freedom and flexibility to advance their missions and help those in need.
