Over the past two years, federal backlash against nonprofits doing racial equity work has been relentless. Executive orders have targeted DEI programs directly, threatening funding and inviting legal scrutiny for foundations that keep equity language in their mission statements, according to the National Council of Nonprofits. Federal funding freezes have hit hardest in the communities lean funders often prioritize; rural areas, communities of color, and immigrant communities among them. And as ICE expanded operations into more cities, nonprofits serving immigrants and communities of color found themselves absorbing new, urgent needs on top of already-thin budgets, per Brookings. These actions have increased the pressure on philanthropy to show up for the communities they serve, and many have.
When Funding Gaps Meet Real Communities
In Hawaiʻi, those pressures have landed close to home for Exponent Philanthropy board member Keahi Makaimoku, CEO of Hauʻoli Mau Loa Foundation. “The effects on nonprofits in Hawaiʻi have been substantial, especially for those working on environmental issues and serving underserved and minoritized groups,” she says. Many of the foundation’s grantees have had to cut programs or pause them altogether. In response, Hauʻoli Mau Loa Foundation has increased grant sizes when possible, provided technical assistance including financial planning, and maintained flexible, multiyear support. The need is significant, though, and the foundation alone cannot close the funding gap partners are experiencing.
In Minneapolis, those same pressures have taken a different shape for Patrick Troska of Rooted Philanthropic, who has watched increased ICE presence hit nonprofits and local businesses hard. His foundation helped organize pooled funds, made a short-term investment to ease cash-flow strain for small businesses on Saint Paul’s East Side, and launched a technical assistance fund for the providers those businesses depend on. He calls the work “exhausting but unifying.”
Language Shifts, Commitment Doesn’t
Stories like these abound across the country. And yet, in the 2026 Racial Equity in Lean Foundations report, we find a striking throughline: one-third of lean foundations say racial equity remains very relevant to their work. While some are changing their language to navigate a shifting legal and political landscape, few are changing their values. This distinction matters enormously.
Three Data Points Worth Sitting With
Commitment is one thing. Board composition is another, and it’s where lean foundations still have the most work to do. Research consistently shows that racial representation in nonprofit and philanthropic governance is linked to more equitable grant allocation, stronger service delivery for underserved communities, and greater institutional legitimacy among communities served, underscoring why diversifying boards is essential to advancing racial equity in the sector.
1. People of color make up 42% of the U.S. population but only 14% of foundation board members.
2. 62% of lean foundation boards are composed entirely of White individuals — just 2% are made up entirely of people of color.
3. Board size predicts diversity. Foundations with larger boards (10–14 members) have significantly more BIPOC representation than those with smaller boards.
Heather Parish, executive director of The Albert Pick, Jr. Fund in Illinois, has lived that last data point firsthand. She grew the board from six members to nine, a change that reshaped not just its composition but its entire recruiting pipeline, opening access to more diverse networks of colleagues. That shift is now visible in the board’s makeup and leadership: the president, vice president, treasurer, and secretary all identify as BIPOC, as do all but one board member.
What Else Is In The Report
The data is just the starting point. This report digs into the equity-centered practices lean funders are adopting internally and externally, the grantmaking and non-grant strategies moving the needle, and how governance, administrative, and investment decisions can support a foundation’s racial equity goals. Throughout, you’ll find quotes, examples, and case studies from lean funders that show not just how these practices work, but why lean funders see them as essential to transforming their communities for the better.
No two foundations are starting from the same place. Some are just beginning to ask how racial equity intersects with their mission; others have been doing this work for decades. Our aim is to offer a clear picture of where racial equity in lean foundations stands today, and a road map for advancing it in ways that are impactful, actionable, and sustainable.
Together, we have a powerful opportunity to shape a more equitable, prosperous, and joyful future. When funders act with intention and true partnership, philanthropy can be a catalytic force for enduring systems change.
Get the 2026 Racial Equity in Lean Foundations Report »