Imagine your neighborhood, town, city, or rural community is facing a significant need or an exciting opportunity, yet it is lacking the financial resources to respond. Too often, the funding and decisions that shape our communities are made far from home without local voices at the table. Even when wealth has been built from the contributions and labor of these very communities, the people most affected are frequently left out of the conversation. I have seen this from Appalachia to the Mississippi Delta to Detroit’s Corktown to the Rocky Mountains.
Why Equity Must Be at the Heart of Philanthropy
Although many funders and donors have good intentions, a disconnect remains when assumptions replace genuine understanding. When grantmaking is guided by external priorities rather than local needs, it can unintentionally do more harm than good by misdirecting resources and overlooking the lived experiences of those on the ground.
That’s why equity must be at the heart of philanthropy. When foundations, individuals, and families commit to listening, learning, and partnering with the full spectrum of the communities they support, real and lasting change becomes possible—and more inclusive for all those involved. Equity-focused giving ensures that resources flow to where they are needed most, empowering those who know their communities best. By centering equity, philanthropy—especially lean funders and donors—can move beyond charity toward true collaboration, creating a future in which everyone has the opportunity to thrive and communities are not just recipients of generosity but leaders in their own transformation.
Lean Funders Are Built for Times Like These
With federal legislation, funding cuts, and executive branch actions creating turbulence across the nonprofit sector and civil society, lean funders are once more being called to lead—not by reacting with fear but by responding with clarity, courage, and conviction.
Lean funders and donors are rooted in community, grounded in values, and driven by relationships. In 2025, racial equity remains one of the clearest ways for funders to ensure their giving is informed, responsive, and transformative. When funders and donors reflect on the people and places they serve—when they listen deeply and act with intention—they not only meet the moment, they help shape a better future.
Introducing the 2025 Racial Equity Report
That is why we are proud to share this new edition of Racial Equity in Lean Foundations. Built on data from our 2025 Foundation Operations and Management Report, this resource offers more than numbers; it offers actionable steps and examples. You’ll find insights on foundation demographics, equity-focused practices, and the grantmaking and governance strategies that funders are using to advance freedom and opportunity in real and lasting ways.
A Call to Lean Funders
We know that not every foundation or donor is at the same place on its racial equity journey. But we do know this: Silence is not neutral. And retreat is not an option. Whether you’re just beginning or are decades into the work, this publication is designed to meet you where you are—and challenge you to go further so that the people and places you support may thrive.
At Exponent Philanthropy, we believe that lean funders have an outsized role to play in building a more inclusive, resilient, and just society. We encourage you to use this report to reflect, connect, discuss, and engage alongside others doing this essential work.
Let’s lead with purpose so that the needs of our communities are heard, supported, and meaningfully transformed.
2025 Racial Equity in Lean Foundations
Download the Full Report:
Dive deeper into the data, insights, and real-world strategies funders are using to advance racial equity. Download Racial Equity in Lean Foundations and start meaningful conversations with your board, staff, and community partners today.
About the Author
Paul D. Daugherty is the CEO of Exponent Philanthropy, the country’s largest association of funders and the only one dedicated to serving foundations, philanthropic families, and individual donors who are lean, but have a mighty impact. As someone who has served in different philanthropic roles for nearly 25 years, Paul recognizes the influence and importance of funders, foundations, and private giving of all sizes.