As the senior director of partnerships at Democracy Fund with deep experience in donor organizing, I know BIPOC-led philanthropy—BIPOC-led (Black, Indigenous, and people of color) grantmaking organizations and BIPOC-identifying individual donors—is essential to building a robust and impactful pro-democracy field. BIPOC leaders bring vital insights into challenges, grantee needs, and sustained impact. A diverse philanthropic sector also expands the range of grant recipients.
Pro-democracy philanthropy stands at a defining moment. It faces mounting pressure to fill funding gaps left by the lost government grants while confronting rising threats to democracy.
Methodology
To assess philanthropy’s response to these threats, Democracy Fund surveyed 151 foundations, donors, advisors, and funding intermediaries between February and March 2025. Participants were invited if they had provided an average of more than $100,000 annually to nonprofits that promote a healthy American democracy.
Respondents expressed uncertainty about what it would take to strengthen our democracy. BIPOC donors and BIPOC-led grantmakers are especially concerned about what they are seeing, and more often than other funders, have already moved in response.
The following analysis of Democracy Fund’s Pulse Survey, focusing on respondents who indicated their organization identifies as BIPOC-led (as defined by the respondents themselves). In this analysis, “BIPOC-led philanthropy” is used to refer to both BIPOC-led grantmaking organizations and BIPOC-identifying individual donors.
Findings
BIPOC-led philanthropy believes U.S. democracy needs transformational reforms
Respondents from BIPOC-led philanthropy were more likely to “agree” or “strongly agree” (93%) than non-BIPOC-led philanthropy (76%) that America’s “democratic system is broken and in need of fundamental reform.” There was also strong dissatisfaction with the way democracy is working in the United States, with 67% of respondents from BIPOC-led philanthropy reporting they were “not at all satisfied.”
BIPOC-led philanthropy sees person-to-person organizing and community-building movement work as crucial
Reflecting on the 2024 election cycle, 83% of respondents from BIPOC-led philanthropy said pro-democracy philanthropy needs to do better with investing in movement building and grassroots organizing ahead of future election cycles.
BIPOC-led and non-BIPOC-led philanthropy differ starkly on views of racial inequality
Eighty-eight percent of respondents from BIPOC-led philanthropy said they “strongly agree” that “racial inequality is a critical issue facing American democracy,” compared with 46% of respondents from non-BIPOC-led philanthropy. There was also a greater concern (79% vs. 38%) among BIPOC-led philanthropy about declining interest in promoting equity and social justice for marginalized groups among donors.
The difference in sentiment tracks with the outsized responsibility placed on BIPOC philanthropy to support issues related to racial injustice.
Research shows that philanthropic leaders are predominantly white, and unconscious racial bias affects which organizations receive funding. As a result, BIPOC-led nonprofits and those serving communities of color tend to receive less support than their white-led counterparts.
BIPOC-led philanthropy is concerned about the broader sector’s readiness to act quickly
Compared to respondents from non-BIPOC-led philanthropy, those from BIPOC-led philanthropy were more likely to say philanthropy as a whole is “not at all prepared” to act quickly and support the field in addressing emerging democracy issues as they emerge (33% vs. 13%). But BIPOC-led philanthropy was more likely to say their own organization was “somewhat” or “very” prepared to act quickly and support needs around emerging democracy issues (82% vs 66%).
Strategies cited to move quickly include increasing flexible funding, communicating funding commitments early, and organizing peer funders and donors to resource the field.
BIPOC-led philanthropy is transforming how they support frontline organizations
While BIPOC philanthropy is skeptical of the philanthropic sector’s readiness, it has charted a path forward—moving dollars to nonprofits that offer direct services to the local communities or regions where the funder is based, leveraging their knowledge of the local landscape.
The survey data also shows the following:
- 61% of BIPOC donors and BIPOC-led grantmakers are increasing flexible funding
- 53% are supporting scenario/contingency planning
- 56% are helping grantees respond to legal challenges and scrutiny
- 42% are helping improve grantee cybersecurity
Support for each of these focus areas was higher among BIPOC-led philanthropy than non-BIPOC-led philanthropy.
The findings suggest that BIPOC-led philanthropy understands the key issues facing grantees and is addressing both urgent and long-term needs through strategic investments in movement building, organizing, contingency planning, security, and legal support. BIPOC-led philanthropy is stepping up. But building a more diverse, resilient, and sustainable pro-democracy field—and through that field, a stronger American democracy—will require more donors and grantmakers of all backgrounds to step forward.
Photo credit: FatCamera via Getty Images
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