More than half of U.S. corporate philanthropy leaders say federal scrutiny of diversity, equity and inclusion initiatives has reshaped how companies approach charitable giving, according to a new survey by The Conference Board, a New York-based nonprofit think tank.
The survey of 82 executives found that 55 percent of companies reported adjusting their philanthropy strategies in response to federal scrutiny on DEI, making it the single most significant policy concern.
In comparison, 20 percent cited corporate tax reform and 18 percent pointed to trade policy and tariffs.
One in four companies said they were stepping back from socially or politically contested causes.
Nearly 27 percent have shifted resources away from issues seen as politically sensitive, such as programs targeted exclusively at particular racial or demographic groups.
Instead, 21 percent are placing greater focus on local community programs tied to company operations, while 19 percent are expanding employee-driven or matching-gift initiatives.
“Corporate philanthropy programs face heightened pressure to demonstrate resilience and alignment with business priorities,” said Andrew Jones, principal researcher at The Conference Board, in a statement. “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.”
Stronger Oversight and Governance
The report shows companies are tightening governance amid the shifting landscape. Sixty percent said their philanthropy teams are now working more closely with compliance and legal departments.
About a third have updated internal policies or guidelines, while another third have reinforced alignment with overall corporate strategy.
Nonprofit partners are also adjusting. Nearly 70 percent of executives said nonprofits they fund have changed how they describe programs, adopting more inclusive or universal language to avoid political or legal scrutiny.
Some 38 percent said nonprofits had reduced public communications about program goals and outcomes.
The financial strain on nonprofits is mounting. Sixty-six percent of corporate leaders reported partner organizations had lost government funding due to policy or legal changes. Forty-five percent cited layoffs at nonprofit partners, and 38 percent noted program cuts.
“Political and legal forces are reshaping not only how companies structure and oversee their own corporate citizenship programs, but also how nonprofits operate,” said Jeff Hoffman, interim leader of the Governance and Sustainability Center at The Conference Board. “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.”
Budgets Steady Despite Uncertainty
Despite the turbulence, corporate giving budgets are holding firm. Two-thirds of respondents said they expect philanthropy budgets to remain flat in 2026, with 19 percent anticipating a decrease and 17 percent predicting an increase.
Executives remain uncertain about the full impact of recent U.S. tax reforms, which make corporate charitable contributions eligible for tax benefits only when donations exceed 1 percent of taxable income.
While 32 percent said the policy change would have no material effect, 57 percent said it was too early to assess the outcome, and 10 percent anticipated a moderate reduction in giving.
The findings are drawn from a July–August 2025 survey of 82 senior leaders responsible for corporate citizenship and philanthropy at leading U.S. multinational companies.
