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Survey: 55% of Companies Say Federal Pressure on DEI Has Affected Philanthropy

08 September 2025 | Press Release

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In a new survey by The Conference Board, 55% of corporate philanthropy leaders say federal scrutiny on DEI has affected their corporate giving strategies.

In this new landscape, many companies are proceeding with caution when it comes to their corporate giving strategies: over a quarter of them are stepping back from socially or politically contested issues, such as giving focused exclusively on specific racial or demographic groups. Additionally, 60% are strengthening compliance and legal oversight of their philanthropy programs.

Budgets, however, appear more resilient: 66% expect their philanthropy budgets to hold steady in 2026. Yet the effect of new US policy changes on how corporate charitable contributions qualify for tax deductions remains unclear—only a third see no material impact, while 57% say it is too early to know.

“Corporate philanthropy programs face heightened pressure to demonstrate resilience and alignment with business priorities. Companies that ensure their giving initiatives reflect financial discipline, strong governance, and close integration into core strategy will be best positioned to sustain their impact,” said Andrew Jones, author of the report and Principal Researcher at The Conference Board.

Findings come from a survey of 82 corporate citizenship and philanthropy leaders at leading US multinational companies, carried out in July and August 2025.

1—Corporate Giving and Strategy

Policy shifts are weighing on corporate giving, with DEI scrutiny cited as the most significant challenge:

55% of surveyed executives say federal scrutiny on DEI has affected their corporate giving strategies
20% cite corporate tax reform or limits on deductibility
18% point to trade policy or tariffs

Half of companies are rethinking their citizenship strategies—often by stepping back from politically sensitive issues:

27% say they’re shifting their efforts away from politically and socially sensitive issues
21% are increasing focus on local communities where the company operates
19% are increasing emphasis on employee-driven or matching-gift programs

Most companies have adjusted their governance, primarily through closer legal/compliance oversight:

60% report closer coordination with compliance or legal teams
32% added or revised internal policies or guidelines
32% strengthened alignment with corporate strategy or purpose

2—Nonprofit Partners

Almost 70% of citizenship leaders say their nonprofit partners have changed language to reduce scrutiny:

68% say their nonprofit partners have adjusted language to reduce political or legal scrutiny
38% emphasized more broadly inclusive or universal approaches
20% reduced external communications on program objectives and impacts

Citizenship executives see mounting strain among nonprofits in 2025, with over 80% citing financial and operational challenges:

66% report nonprofit partners losing government funding due to policy or legal changes
45% cite staffing reductions or layoffs at partner organizations
38% saw cuts to programs or services offered by partners

“Political and legal forces are reshaping not only how companies structure and oversee their own corporate citizenship programs, but also how nonprofits operate. The result is an ecosystem recalibrating how it describes and delivers services—driven less by mission priorities than by the demands of a more complex, risk-sensitive environment,” said Jeff Hoffman, Interim Leader of the Governance and Sustainability Center at The Conference Board.

3—Budgets and Financing

Despite economic uncertainty, most citizenship leaders expect budgets to hold steady in 2026:

66% expect budgets to remain flat
19% anticipate a decrease
17% foresee an increase

Recent US tax policy reforms—making corporate charitable contributions eligible for tax benefits only when above 1% of taxable income—will likely influence corporate giving, although the impacts are not yet clear: