(image from pexels.com)
More than half (55%) of corporate philanthropy leaders polled think that federal scrutiny on diversity, equity, and inclusion (DEI) has affected their corporate giving strategies. Many companies are proceeding with caution when it comes to their corporate giving strategies.
“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,” Andrew Jones, author of the report “Corporate Citizenship in Transition: Lessons from 2025, Planning for 2026” and principal researcher at The Conference Board, said via a statement.
The hot buttons, as you might expect, include socially or politically contested issues, such as giving focused exclusively on specific racial or demographic groups. Results show 27% said they’re shifting their efforts away from politically and socially sensitive issues, 21% are increasing focus on local communities where the company operates, and
19% are increasing emphasis on employee-driven or matching-gift programs.
And, according to new data from the Conference Board in New York City, 60% of respondents to the survey are strengthening compliance and legal oversight of their philanthropy programs.
Budgets, however, appear more resilient, with two-thirds (66%) of respondents expecting their philanthropy budgets to hold steady during 2026. Yet the effect of new U.S. policy changes on how corporate charitable contributions qualify for tax deductions remains unclear — only one-third of respondents see no material impact, while 57% said it is too early to know.
Findings come from a survey of 82 corporate citizenship and philanthropy leaders at leading multinational companies in the U.S., carried out during July and August 2025.
The trends include:
Corporate Giving And Strategy — Policy shifts are weighing on corporate giving, with DEI scrutiny cited as the most significant challenge. The responses show 55% of surveyed executives said federal scrutiny on DEI has affected their corporate giving strategies; 20% cited corporate tax reform or limits on deductibility; 18% pointed to trade policy or tariffs.
Most respondents adjusted their governance, primarily through closer legal/compliance oversight. That governance includes: 60% reporting closer coordination with compliance or legal teams, 32% adding or revising internal policies or guidelines, and 32% strengthened alignment with corporate strategy or purpose.
Nonprofit Partners — Almost 70% of citizenship leaders said their nonprofit partners have changed language to reduce scrutiny, with 68% saying their nonprofit partners have adjusted language to reduce political or legal scrutiny, 38% emphasizing more broadly inclusive or universal approaches, and 20% reducing external communications on program objectives and impacts.
Citizenship executives see mounting strain among nonprofits during 2025, with more than 80% citing financial and operational challenges that include 66% reporting nonprofit partners losing government funding due to policy or legal changes, 45% citing staffing reductions or layoffs at partner organizations, and 38% seeing 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, said via a statement.
Budgets And Financing — Despite economic uncertainty, most citizenship leaders expect budgets to hold steady in 2026, with 66% expecting budgets to remain flat, 19% anticipating a decrease, and 17% foreseeing an increase in giving.
The full report is available at www.ConferenceBoard.org
