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Another day, another high-profile company walking away from its diversity, equity, and inclusion (DEI) commitments. This time it’s retailer Target, which has also prompted concerns over the future of its corporate philanthropy.
The Minneapolis-based retailer, which has been a significant donor to racial justice and LGBTQ+ causes, announced it would discontinue DEI-driven goals and reduce participation in external diversity assessments.
While others have restated their DEI commitment, others including Walmart, Amazon, and Meta have walked away from such initiatives following legal, political and media challenges. Critics argue the shift could diminish corporate support for non-profit organizations that rely on these contributions.
Uncertainty for non-profits
Target and the Target Foundation have historically committed six-figure donations to organizations supporting Black economic empowerment and LGBTQ+ rights. While the company insists its philanthropic efforts will be unchanged, nonprofit leaders say there is growing uncertainty about future funding and some are even turning it away.
Kat Rohn, executive director of OutFront Minnesota, said changes in corporate leadership priorities often signal shifts in charitable giving. Twin Cities Pride, which had received around $50,000 annually from Target, recently declined the company’s sponsorship after learning of its revised DEI stance.
Executive Director Andi Otto said the decision was based on concerns that the company’s internal policies no longer aligned with the nonprofit’s mission. Since severing ties, Twin Cities Pride has raised more than $50,000 from individual donors and other sponsors.
Political backlash
Target’s decision comes amid increasing scrutiny of corporate DEI programs, which has gained momentum under Trump’s administration, which claims that such initiatives exacerbate workplace tensions and are inequitable. More recently, legal challenges have targeted race-specific funding programs, with some funders wary of potential litigation.
Last year, Target faced criticism over its Pride Month merchandise, leading to concerns within LGBTQ+ advocacy groups that corporate support could continue to erode. Progressive activists are now urging consumers to prioritize purchases from minority-owned brands, with at least one Black-owned business, Oh Happy Dani, opting to pull its products from Target shelves.
Nonprofits reassess partners
Corporate philanthropy has long been a vital funding source for social justice organizations. In 2022, Target ranked as the fifth-largest corporate donor in Minnesota, contributing to education, arts, and diversity initiatives. While the company has reaffirmed its commitment to charitable giving, its policy changes have left some organizations questioning their relationship with corporate sponsors.
“We don’t know which companies will maintain their support and which won’t,” Otto added. “But we’re seeing more nonprofits reevaluate their partnerships when values no longer align.”
