The Queer Year in Philanthropy: What Changed, and What Still Needs To

Dear nonprofit leaders and development professionals,

As we approach the end of 2025, one thing is already clear: even without the full year’s data, philanthropy is sending us signals about where it’s headed, and what that means for LGBTQIA+ communities. The most recent national reports (covering 2023 and 2024 activity) show a nonprofit sector experiencing growth overall, while Queer-specific funding continues to stagnate or decline.

So rather than waiting for next year’s retrospective, now is the time to take stock of the patterns we’re already seeing: what shifted this year, what didn’t, and what Queer nonprofits and funders need to prioritize heading into 2026.

Big Picture: Giving Grew, But Queer Support Still Faltered

Yet despite the upswing in overall philanthropy, Queer-specific giving, especially to grassroots, LGBTQIA+, TGNBNC, and BIMPOC-led organizations, didn’t reflect that growth. The grant pipelines and funding opportunities for Queer initiatives remain perilously narrow.

A glance at broader nonprofit data underscores the challenge: the 2025 Fundraising Effectiveness Project (FEP) Q1 report shows that while dollars raised increased, the number of donors dropped 1.3% year-over-year, and retention rates dipped slightly from 18.3% to 18.1%. The smallest donor tier ($1–$100) shrank 11.1%, signaling shrinking grassroots giving capacity early in the year.

Translation: There’s more philanthropy money floating around, but Queer nonprofits are still fighting for scraps.

What the Data Shows and What It Hides

Gains Didn’t Reach the Most Vulnerable Queer Communities

While giving surged in aggregate, the funding ecosystem remains weighted toward large, established institutions. Smaller, grassroots Queer orgs, especially those led by trans, BIMPOC, or gender-nonconforming folks, continue to be passed over.

The macro numbers hide micro-realities: shrinking donor pools, tighter grants, and increased competition for fewer dollars.

New Giving Channels Didn’t Fully Translate

Reports suggest that donor-advised funds (DAFs), peer-to-peer fundraising, and recurring giving platforms became more popular in 2024–2025.

But many Queer nonprofits lack the infrastructure, or knowledge, to fully leverage those channels. The result: missed opportunity for community-driven fundraising that could bypass traditional gatekeepers.

Crisis Giving Rose But Isn’t Enough

With ongoing political attacks on LGBTQIA+ rights, many donors and foundations turned to rapid-response grants. Still, one-off emergency funding can’t replace the stability and long-term investment that Queer orgs need.

Temporary relief often lacks renewal, leaving organizations continually scrambling instead of building.

What Worked and What We Should Lean Into

  • General philanthropy is back in growth mode. The increase in total giving shows there is money, funders just need to choose where it flows.

  • Peer-to-peer and grassroots giving are growing tools. For orgs that tapped into community fundraising in 2024–2025, peer-led campaigns were lifelines when institutional dollars slowed.

  • The philanthropic recession narrative is pushing some to reevaluate priorities. As funders tighten budgets, some are seeking higher impact per dollar, which could favor smaller, community-rooted Queer orgs if funders shift how they define “impact.”

What 2026 Must Look Like: The Demands for True Queer Philanthropy

  1. Treat LGBTQIA+ causes as core investments, not side projects. Queer, trans, and BIMPOC-led organizations should be considered essential partners in health, housing, youth, and social justice work, not optional add-ons.

  2. Prioritize multi-year, unrestricted funding. Stop funding only projects. Invest in the people, infrastructure, and capacity-building that sustains Queer communities long-term.

  3. Center leadership that looks like the community. Make grants that go directly to TGNBNC, BIMPOC, and grassroots groups led by the people most impacted.

  4. Support alternative giving: recurring gifts, peer-to-peer, community-based campaigns. Provide match grants, capacity-building, and training for community outreach, not just large institutional enrollments.

  5. Push donors to diversify beyond wealth-based giving. Encourage mid-level donors, recurring small donors, and Queer community-based circulation, because community capital is real capital.

For Queer Nonprofits: Your 2026 To-Do List

  • Build or strengthen community giving infrastructure — peer-to-peer campaigns, recurring gift options, grassroots donor networks.

  • Collect and share equity data (race, gender identity, community served) to make the case for funding beyond performance metrics.

  • Tell stories of joy, resilience, and long-term impact, not just crisis. Funders respond to forward-looking visions as much as urgent need.

  • Lean into collaborations across issues, Queer-led orgs often address multiple community needs (health, housing, justice); show that intersectional value in your proposals.

This Year’s Numbers Should Be a Warning, Not a Comfort

The story of Queer philanthropy is still being written — and 2026 is a chance to change the narrative. The trends we’ve seen this year aren’t destiny; they’re a mandate. Funders have the opportunity to invest boldly in the organizations that are shaping culture, saving lives, and building futures that do not yet exist.

Queer nonprofits are not waiting for permission. We’re innovating, organizing, teaching, healing, and imagining anyway. But with intentional investment, we could do so much more — and so much faster.

If philanthropy truly wants to be on the right side of history, now is the time to follow the brilliance, resilience, and leadership of Queer communities.

2026 can be the year funders finally fund the future they claim to believe in.

Sincerely,

Queers

Queer For Hire provides fundraising support to Queer nonprofits, LGBTQIA+ cultural competency to straight-led organizations and corporations, and individual coaching for Queer professionals.

Learn about our Fundraising Services <here> – we’ll lead or support your fundraising efforts, whether you need general support or want to focus on raising money from and for the LGBTQIA+ community.

Learn about our Fundraising Trainings <here> – we can coach your board, staff, and fundraising team on how to fundraise and how to engage LGBTQIA+ donors.

Learn about our other services <here> or our resources <here>.

Previous
Previous

What to Leave Behind: Outdated Practices Philanthropy Needs to Retire in 2026

Next
Next

It’s Not Too Late: Year-End Actions That Still Make an Impact