With strings attached: Philanthropic funding and greater inclusiveness

A dominant theme of the philanthropy research literature is conservative funder influence on social movements. In this paper we look at a “reverse” case, focusing on a philanthropic funder using financial clout to move non-profit organizations in a more liberal direction. We interviewed a random sample of 48 executive directors from the 634 non-profit organizations that were funded recently by the Gay & Lesbian Fund for Colorado (GLFC). GLFC required grantees to change personnel policies toward greater inclusiveness and to publicly acknowledge GLFC funding. Directors responded to interview questions on reactions to sponsorship and changes in diversity and inclusivity. Results show retaliation, a serious form of resistance or pushback, was rare and is more common from external sources, especially donors, than internal sources (e.g. staff; p < .05). Because some organizations are diverse prior to grant application, further increases in organizational personnel diversity and constituent outreach are difficult. Therefore, the efficacy of attaching strings to funding was mixed.

► We examine a case of liberal philanthropy on effecting social change.
► Our research showed a moderate amount of organizational change.
► Results included minor to moderate levels of resistance or pushback.
► Results showed retaliation, a serious form of resistance or pushback, was rare.
► The efficacy of attaching strings to funding was mixed.