Report: Progress Made, But Gaps Remain in Racial Equity at Lean Foundations

Exponent Philanthropy, a philanthropic network in the country focused on lean-operating foundations, donors, and families, has released its 2025 edition of Racial Equity in Lean Foundations. The report offers a comprehensive view of how lean funders are addressing racial equity in their grantmaking, governance, and operations, grounded in recent data from Exponent Philanthropy’s 2025 Foundation Operations and Management Report (FOMR).

“This year’s report makes one thing clear: Equity is at the heart of effective philanthropy,” said Paul D. Daugherty, CEO of Exponent Philanthropy. “When foundations, individuals, and families commit to listening, learning, and partnering with the full communities they support, real and lasting change becomes possible. Equity-focused giving ensures that resources flow to where they are most needed, empowering those who know their communities best.”

The 2025 Racial Equity in Lean Foundations Report offers promising practices and explains why these practices are essential to positively transforming communities. When philanthropy truly partners with community members, listens deeply, and acts with positive intentions, they not only meet the moment—they help shape a better future for all community members.

Highlights from the 2025 Report:

In this moment of turbulence, lean funders have an outsized role to play in building a more inclusive, resilient, and just society. The 2025 Racial Equity in Lean Foundations publication delivers:

• A closer examination of lean funders’ approaches to embedding equity in their work.
• Practical recommendations for embedding equity in governance, operations, and funding strategies.
• Data-driven analysis of board and staff demographics, equity-focused grantmaking, and institutional practices.
• Identified trends to equity-lens in grantmaking and community engagement, such as:
  • 28% of foundations provide multiyear general operating support, though these grants are widely recognized as essential for nonprofit sustainability.
  • Foundations prioritizing racial equity are significantly more likely to invest in movement-building, funding evaluation, and participatory grantmaking. Nearly two-thirds of lean funders (63%) report authentic relationships with community partners, but fewer consistently collect or disaggregate demographic data to inform decision-making.
• Identified progress with board governance: The percentage of lean foundations with all-White boards has declined from 72% in 2019 to 58% in 2023, while those with two or more board members of color more than doubled, from 13% to 27%.
• Staff Diversity Remains Low: Over half of lean foundations (57%) have all-White staff, and only 12% have a CEO who identifies as a person of color, highlighting the need for more inclusive hiring and leadership practices.

A Call to Leadership

The publication emphasizes that lean funders’ flexibility and proximity to communities uniquely position them to lead during this period of heightened scrutiny of diversity, equity, and inclusion efforts.

“Equity means that it requires funders and donors to be fair and impartial in their approach so that their giving positively impacts all members of the communities they serve,” Daugherty writes in the report’s introduction. “Whether you’re just beginning your equity journey or decades into the work, this publication is designed to meet you where you are—and challenge you to go further so that the people and places you support may thrive.”

Access the 2025 "Racial Equity in Lean Foundations" report here.

Source: Exponent Philanthropy

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