Philanthropy thrives when it listens, learns, and evolves to meet the needs of the communities it serves. In recent years, lean funders have increasingly recognized that racial equity is not an optional add-on but central to their mission, regardless of focus area. Yet, as this report shows, progress is neither uniform nor assured.
While some funders have made meaningful strides in integrating racial equity into their grantmaking, governance, and operations, others remain hesitant and uncertain about how to proceed. Wherever funders find themselves in their equity journey in 2025, they will face external pressures that threaten to slow or even reverse their progress.
Exponent Philanthropy’s Commitment
At Exponent Philanthropy, our vision—transformed communities through informed giving—guides everything we do. To us, equity means ensuring that funders and donors act with fairness and intention so their giving benefits everyone in the communities they serve. Our commitment is to help members listen deeply, keep learning, and make sure resources reach all people, so every community can thrive. When we center equity in our work, we create lasting, positive change together.
Key Insights
This year’s Racial Equity in Lean Foundations report builds on data from Exponent Philanthropy’s 2025 Foundation Operations and Management Report (FOMR) and continues our look at how leanly staffed foundations are engaging with racial equity. The findings show both progress and ongoing gaps in representation and leadership.
Lean Foundation Board and Staff Demographics
Who serves on a foundation’s board and staff shapes how it makes decisions and carries out its mission. The data paint a nuanced picture of continuing disparities and emerging progress.
Although non-White individuals make up about 42% of the U.S. population, they represent only 15% of foundation board members.¹
Still, there are signs of progress: the share of foundations with no BIPOC board members has declined from 72% in 2019 to 58% in 2023, while those with two or more BIPOC board members have more than doubled—from 13% to 27% over the same period.²
Staff diversity shows a similar pattern. While people identifying as BIPOC make up 41% of the U.S. population, they account for just 31% of lean foundation staff.
Leadership roles remain the least diverse area—only 12% of foundations with full-time CEOs or top administrators have someone in that role who identifies as BIPOC.
The data show progress, but more work is needed, especially in leadership, to reflect the communities foundations serve.
Racial Equity Practices
Since 2019, Exponent Philanthropy has tracked how leanly staffed foundations view the relevance of racial equity to their missions. Our survey defines racial equity as “the systematic fair treatment of people of all races that results in equitable opportunities and outcomes for everyone.”³
We asked foundations to rate how relevant racial equity is to their mission on a 10-point scale, from 1 (not relevant) to 10 (very relevant). In this year’s report:
- 34% of members said racial equity is very relevant to their foundation’s mission.
- 38% said it is somewhat relevant.
- 28% said it is not relevant.
These responses suggest that while many funders recognize the importance of racial equity, there is still room for deeper integration across the sector.
Grantmaking and Non-Grant Strategies to Support Racial Equity
Foundations that view racial equity as very relevant to their work are more likely to apply strong grantmaking practices. They integrate equity principles in a variety of ways, for example, by offering multiyear, flexible funding, providing seed grants, supporting movement-building, or funding evaluation efforts.
Yet, some proven strategies remain underused:
- Only 28% of foundations provided multiyear general operating support grants, despite broad recognition of their benefits.
- 20% offered financial support for grantee evaluation, with those prioritizing racial equity more likely to do so.
- 26% funded community organizing or movement-building, again with higher participation among those emphasizing racial equity.
- 21% engaged constituents directly in the grantmaking process, ensuring that community voices help shape funding decisions.
Taken together, these findings show that foundations that view racial equity as central to their mission are leading the way in implementing more inclusive and effective grantmaking practices, but there is still opportunity for broader adoption across the field.
Staffing and Governance Practices Aligned With Racial Equity
A foundation’s commitment to equity goes beyond its grantmaking. Embedding a racial equity lens in staffing and governance helps align the entire organization around shared values and strengthens its ability to create lasting impact.
Boards that viewed racial equity as somewhat or very relevant to their mission spent significantly more time connecting with the communities they serve through site visits, grantee meetings, and attendance at conferences related to their funding areas. This hands-on engagement helps board members stay grounded in community needs and priorities.
Leaders at foundations that rated racial equity as very relevant to their mission also showed different work patterns. CEOs and top administrators devoted more time to generative work and professional development, and less time to investment management or pre-grant activities, a shift that reflects more strategic and learning-focused leadership.
Finally, these foundations were more likely to have formal written policies in place to guide their equity efforts, demonstrating a deeper, institution-wide commitment to advancing racial equity through both culture and structure.
Staying the Course in Racial Equity Work
Advancing racial equity in philanthropy takes persistence, action, and courage. Lean foundations have made real progress, but the work is far from finished. Data on demographics, grantmaking, and institutional practices all point to the same truth: there’s still much to do to build truly inclusive and equitable funding structures.
As racial equity and DEI efforts face growing scrutiny, this is not the time to step back or wait for a more favorable moment. It’s a time to lean in to uphold the principles that make philanthropy a force for justice: fairness, access, and opportunity for all.
Funders can stay the course by:
- Reaffirming their commitment to racial equity —making equity a lasting core value, not a temporary focus.
- Staying connected and informed—learning from peers and staying aware of how external pressures shape this work.
- Acting with intention—moving beyond words toward inclusive governance, funding BIPOC-led organizations, and advocacy that drives equitable systems.
Progress is rarely linear, and resistance often follows change. But lean funders, with their flexibility, community focus, and long-term view, are well positioned to keep moving philanthropy toward a more equitable future.
Take a Closer Look
2025 Racial Equity in Lean Foundations
Want to dig deeper into the data and stories behind this work? Explore real-world strategies funders are using to advance racial equity and spark conversations with your board, staff, and partners. Download Racial Equity in Lean Foundations today »
Footnotes
¹ U.S. Census Bureau. (n.d.). Quickfacts: United States. https://www.census.gov/quickfacts/fact/table/US/PST045219
² An analysis of variance (ANOVA) test was used to examine differences in the percentage of board members who identified as BIPOC in the past 5 years (i.e., from 2019 to 2023).
³ Apollon, D., Keheler, T., Medeiros, J., Ortega, N. L., Sebastian, J., & Sen, R. (2014). Moving the race conversation forward. Race Forward. https://act.colorlines.com/acton/attachment/1069/f-0114/1/-/-/-/-/Racial_Discourse_Part_1.PDF