In the aftermath of heightened awareness surrounding social justice issues, particularly following George Floyd’s murder, the landscape of philanthropy in Greater Boston is facing a stark reality.
Five years since the national outcry for racial equity began, many stakeholders on both sides of the philanthropic spectrum—donors and recipients—report a noticeable decline in energy and commitment to social change initiatives.
“It’s part of the problem that we see in philanthropy over time,” stated Shanique Rodriguez, the executive director of the Massachusetts Voter Table, a coalition representing over 40 advocacy groups.
Rodriguez described a troubling trend where philanthropic endeavors often follow what’s popular or urgent at the moment, leaving behind a lack of sustained support for long-term initiatives.
The advent of the Trump administration has significantly altered the philanthropic landscape, particularly through its targeted approach against diversity, equity, and inclusion (DEI) initiatives.
This political climate has created a chilling effect on both donors and nonprofits, leading to some organizations rescinding their funding commitments and others removing any DEI-related language from their programs.
In contrast, a few nonprofit leaders are choosing to confront these challenges head-on, demonstrating resilience amidst a retreat from funding commitments to equity-focused initiatives.
As federal funds face cuts from a government resistant to supporting organizations advocating for racial justice, some philanthropic leaders fear that crucial funding sources are diminishing at a pivotal moment.
The continuation of resistance toward social justice and equity initiatives is compounded by proposed legislation from Republican lawmakers aimed at stripping tax-exempt statuses from organizations labeled as “terrorist supporting.”
In the wake of George Floyd’s murder, many influential Boston-based brands, foundations, and educational institutions pledged to bolster their support for racial justice causes.
A review of 25 pledges made by roughly 20 local institutions within the year following Floyd’s death revealed that about 60% of those commitments were in the form of monetary grants.
While a select few offered pro bono services or workplace initiatives rather than direct funding, around 10% of promises were framed as investments, benefiting both the community and the donors.
Bain Capital, for instance, committed $100 million over the next decade to various nonprofit organizations.
The University of Massachusetts Boston also initiated the George Floyd Honorary Scholarship Fund, which has raised nearly $175,000 and awarded $11,500 in scholarships thus far.
Wayfair pledged $30 million towards “social impact investing,” with $20 million allocated to the Black Economic Development Fund at the Local Initiatives Support Corporation, a community development financial institution.
Of the 20 organizations contacted regarding their funding commitments, nearly all except for two reported that they had either fulfilled or were in the midst of fulfilling their promises.
However, the transparency concerning the impact of these funds on the Black community, or the specific programs benefiting from this financing, varies significantly.
While one nonprofit was able to provide receipts, most others offered only itemized grant amounts, leaving gaps in public knowledge about how funds are allocated.
In a statement, a Bain Capital spokesperson shared that the company had exceeded its 10-year, $100 million commitment ahead of schedule, although they refrained from disclosing specifics.
Among the beneficiaries were prominent organizations such as the NAACP, Year Up, and the GreenLight Fund.
Similarly, a spokesperson from the Local Initiatives Support Corporation confirmed Wayfair’s investment but cited fiduciary responsibility as a reason for not disclosing detailed information.
Furthermore, tax forms submitted by nonprofit organizations to the Internal Revenue Service (IRS) provide some insights into their financial activities, although this information is often more accessible to the public through press releases and annual reports.
With the Trump administration’s cuts decimating federal funding directed towards organizations not aligned with its ideology, advocates argue that there is an urgent need for charitable contributions to grassroots organizations.
A MassINC survey of over 500 nonprofit members in Massachusetts earlier this year indicated that nearly 60% had received federal funds, but 90% were apprehensive about future declines in that revenue stream.
As federal programs such as SNAP and Medicaid face proposed cuts, many nonprofits anticipate an increased demand for their services.
Approximately two-thirds of respondents in the survey projected that the need for support would grow, particularly among organizations working with immigrants, people of color, and individuals who are incarcerated.
This potential drop in federal dollars risks creating a damaging feedback loop, whereby the increased reliance on nonprofits for support pushes them towards seeking even more funding from philanthropists.
However, many in the charitable giving space worry that if the philanthropic resources dwindle, the community’s capacity for support may dwindle alongside it.
“There’s not really an answer,” exclaimed Stacey Borden, the executive director of Dorchester-based New Beginnings Reentry Services.
Despite the uncertainty, she remains steadfast in her commitment, saying, “I just have to keep the faith.”
In response to the changing environment, many philanthropies are revising their approaches to funding.
They are increasingly offering unrestricted funds, disbursing larger amounts of grant money up front, and providing consultant support to nonprofits in need.
Bob Rivers, the executive chair of Eastern Bank, articulated this shift, stating, “Many foundations are shifting our mindset away from transformation to preservation.”
Fortunately, Massachusetts’s philanthropic landscape is bolstered by a solid giving economy, which reported at least $4.7 billion in donations back in 2017, according to Philanthropy Massachusetts’ 2020 report on statewide giving.
In specific local circles, some funders are stepping up to fill the gaps left by reductions in federal support.
Certain organizations focused on racial equity are witnessing an increase in support, which some view as promising.
Lee Pelton, the chief executive of the Boston Foundation, indicated that his organization is on track for another record year in donations.
He stated, “It’s hard to sustain the momentum of anything from five years ago, but that sense of urgency has been renewed since the federal regime has taken office.”
Marquis Victor, the executive director of Elevated Thought, a nonprofit organization in Lawrence fostering creative outlets for artists of color, noted that his organization has experienced “rapid growth” in recent years.
Elevated Thought is in the process of expanding its facilities and programs, having achieved stability without reliance on federal funds.
However, Victor voiced concerns that the Trump administration’s attacks on DEI initiatives might indirectly impact their operations, as funders may hesitate to support their work to safeguard their own reputations.
Even amid a reduced collective energy for racial justice, several leaders shared with the Globe that some positive changes in philanthropy have continued to steadfastly endure.
Certain foundations are now providing nonprofits with grants upfront or offering prompt funding to cover operational costs, alongside making the application process much lighter.
The New Commonwealth Fund, initiated by Black and Latino business leaders in reaction to the events of 2020, has adapted the types of social causes it supports to ensure it reflects a broader spectrum of equity-related groups.
Makeeba McCreary, the CEO of the New Commonwealth Fund, explained that these alterations were driven by strong relationships with grantees.
To date, the Fund has raised over $40 million and allotted roughly $17 million in grants.
“Nonprofits consistently communicate, ‘We feel safe, we feel seen, we know that you’re not going away,’” McCreary described.
For those involved with the New Commonwealth Fund, social justice remains a priority that isn’t just treated as a temporary trend.
Despite these advancements, it remains clear that a significant struggle persists, as many corporate donors continue grappling with how to effectively re-align their strategies with racial equity needs.
Too little progress has been made in diversifying boards and restructuring resources for nonprofits, and discussions surrounding racial justice often now take on a more subdued, covert nature.
McCreary likened this hesitance to the bystander effect, asserting, “Unless you tell folks who are doing the harm to stop, you’re part of the problem.”
image source from：https://www.bostonglobe.com/2025/05/23/metro/george-floyd-boston-philanthropy-five-years-later/
