A new survey of over 80 corporate citizenship and philanthropy leaders at leading U.S. multinational companies say that federal scrutiny of diversity, equity, and inclusion (DEI) programs has affected their corporate giving programs.

Half of the companies surveyed state that they are rethinking their citizenship strategies by stepping back from politically sensitive issues such as giving focused exclusively on specific racial or demographic groups, and focusing more attention on noncontroversial issues such as education, disaster response, and local community needs.

Also cited as impacting corporate giving decisions is the recently enacted 1 percent floor on the deductibility of corporate gifts and the uncertainty over trade policy and tariffs.

Despite economic uncertainty and political pressure, most companies expect their philanthropic budgets to remain steady in 2026 while one-fifth anticipate a decrease, and some foresee an increase.

Nonprofit organizations who are the recipients of grants from companies have also been forced to change how they operate and communicate about their programs. Over two-thirds of companies say their nonprofit partners have adjusted the language in their communications to reduce political or legal scrutiny and over one-third say their nonprofit partners have emphasized more broadly inclusive or universal approaches to issues. Many nonprofits have simply reduced their external communications related to program objectives and impacts.

Two-thirds of companies also report that their nonprofit grantees have lost government funding in 2025, leading to layoffs and program cuts. Companies have responded in various ways, including more unrestricted support, reducing the number of nonprofit partners, and providing more in-kind support in the way of technology, capacity building, and volunteers.

“Political and legal forces are reshaping not only how companies structure and oversee their own corporate citizenship programs, but also how nonprofits operate,” stated Jeff Hoffman, Interim Leader of the Governance and Sustainability Center at The Conference Board in an email to this writer. “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.”

Read the full article about shifts in corporate philanthropy by Timothy J. McClimon at Forbes.