The State of DEI in 2025

The State of DEI in 2025: The Impact on Nonprofits and Major Gift Fundraising

Diversity, Equity, and Inclusion (DEI) has been a driving force in the nonprofit sector for years, shaping everything from hiring practices to donor engagement strategies. However, in 2025, the conversation around DEI has evolved. Some organizations are doubling down on their commitments, while others face pushback due to political and economic shifts.

For major gift fundraisers, understanding the changing landscape of DEI is critical. How do donors feel about DEI initiatives? How do organizations balance inclusivity with fundraising success? And most importantly, what does the future hold for DEI in nonprofit fundraising?

Let’s break down the current status of DEI in the nonprofit sector and its direct impact on major gift philanthropy.

The Current Landscape of DEI in Nonprofits

Over the past decade, nonprofits have worked to integrate DEI into their missions, leadership teams, and fundraising strategies. However, recent trends show a shift:

1. Corporate DEI Retraction: Many corporations that once championed DEI are scaling back due to political scrutiny and budget constraints. This affects nonprofit funding streams, as corporate partnerships play a crucial role in philanthropy.
2. Donor Divisions on DEI: While some donors continue to prioritize giving to organizations with strong DEI commitments, others are less inclined to support nonprofits that emphasize social justice or racial equity.
3. Workforce Challenges: Nonprofit employees and fundraisers, particularly those from underrepresented backgrounds, are demanding more accountability and action beyond statements and mission statements.
4. Philanthropic Shifts: The rise of trust-based philanthropy has led some funders to rethink traditional grant-making, emphasizing unrestricted giving and community-led solutions.

These shifts directly impact how major gift fundraisers approach donor engagement, stewardship, and solicitation.

How DEI is Affecting Major Gift Fundraising

1. Donor Perspectives on DEI Are Shifting

• Values-Aligned Donors: Many high-net-worth individuals, especially younger generations and impact-driven philanthropists, still prioritize DEI when making major gifts. They want to see measurable diversity in leadership, equitable grant-making, and authentic community engagement.
• Pushback from Certain Donors: Some donors perceive DEI efforts as overly political and prefer to give to organizations with "neutral" missions. Fundraisers must be prepared to navigate these conversations diplomatically.

Fundraising Tip: Use donor data to segment and personalize outreach. Understand which donors prioritize DEI and tailor messaging accordingly.

2. Foundations Are Prioritizing Inclusive Grant-Making

Many large foundations continue to emphasize DEI in their funding strategies. This includes:

• Unrestricted Giving: More funders are moving away from project-based funding, allowing nonprofits to allocate resources where needed.
• Funding BIPOC-Led Organizations: There’s a growing push to address historical disparities by directing more resources to organizations led by Black, Indigenous, and other leaders of color.
• Community-Centric Philanthropy: Foundations are listening more to grassroots organizations, shifting decision-making power to the communities they serve.

Fundraising Tip: If your organization is seeking major gifts from foundations, align proposals with their DEI priorities and demonstrate real impact.

3. Wealth Transfers and the Role of Diverse Donors

• The Great Wealth Transfer: Over the next 20 years, trillions of dollars will be passed down from Baby Boomers to Millennials and Gen Z, who tend to value social justice and equity-driven giving.
• Rise of Diverse Philanthropists: More donors of color are engaging in high-net-worth philanthropy. Organizations must build authentic relationships with these donors, ensuring they feel seen and valued.

Fundraising Tip: Review donor engagement strategies to ensure they are inclusive and reflective of the communities you serve. Diverse donors want more than just solicitation—they want to be part of the mission.

4. The Future of DEI in Nonprofit Fundraising

Despite the challenges, DEI remains an essential component of ethical and sustainable fundraising. Looking ahead, nonprofits should focus on:

• Authenticity Over Optics: Donors and funders can see through performative DEI efforts. Organizations must move beyond surface-level statements and demonstrate real commitment through policies, leadership, and impact.
• Equity-Centered Fundraising Models: Nonprofits must rethink traditional fundraising approaches, ensuring they are accessible and inclusive to all donors.
• Stronger Data and Impact Reporting: Measuring and sharing DEI progress will be key in securing future funding. Donors want to see real outcomes, not just promises.

Final Thoughts: Balancing DEI and Fundraising Success

Major gift officers and nonprofit leaders must navigate a complex DEI landscape with strategy and care. The key is to remain adaptable—understanding that while some donors may resist change, the future of philanthropy is shifting toward inclusivity, transparency, and equity.

By aligning DEI with fundraising strategies in meaningful ways, nonprofits can continue to attract values-driven donors while ensuring long-term sustainability.

Join the Conversation

How is your nonprofit adapting to the evolving DEI landscape? Are you seeing changes in donor attitudes? Let’s discuss in the comments.