The Philanthropy Sector’s Diversity Problem is Ruining Queer Innovation

Dear nonprofits and fundraising leaders,

Philanthropy loves the language of change. We talk about transformation, equity, and impact. But when it comes to who gets funded (and who gets to decide) our sector remains overwhelmingly white, cisgender, and risk-averse.

And that lack of diversity isn’t just an optics problem. It’s an innovation problem.

When Queer, Trans, and BIMPOC-led organizations are systemically underfunded, philanthropy loses access to the boldest, most creative ideas in our field. The very communities that have historically invented resilience are treated as charity recipients instead of thought leaders and change architects.

We’re not short on vision; we’re starved of resources.

The Diversity Gap That’s Holding Philanthropy Back

According to the 2023 Resource Tracking Report from Funders for LGBTQ Issues, U.S. foundations awarded $209.4 million to LGBTQIA+ communities and causes—an almost 20 % nominal decline from 2022’s $258.1 million. And of that total, only a fraction reached Trans-led and BIMPOC-led organizations.

Meanwhile, these same organizations are the ones driving cultural change, responding to crises, and innovating community-based solutions faster than traditional institutions can react. They’re doing transformative work, but on shoestring budgets that would barely fund a single event at a national foundation gala.

Philanthropy’s leadership tables remain dominated by those who study equity rather than those who live it. When the people closest to the problem aren’t resourced to lead, the result is predictable: burnout, stagnation, and lost innovation.

Queer Innovation Is Intersectional

As I’ll be sharing in my upcoming AFP LEAD 2025 session, “The Future of Philanthropy is Intersectional: Leading with Inclusion for Maximum Impact,” with Daa’iyah Rahman, we can’t separate Queer progress from racial justice, disability justice, or gender equity.

Queer innovation happens at the intersections: in the places mainstream philanthropy too often overlooks. This includes:

  • In Trans and BIMPOC-led mutual aid networks responding to community crises faster than institutions can schedule a meeting.

  • In Queer youth organizing spaces reimagining leadership structures rooted in care, not hierarchy.

  • In small grassroots centers sustaining joy and connection while national funding dries up.

These aren’t side projects, they’re blueprints for the future of philanthropy.

What Funders and Allies Can Do Differently

If we want innovation, we have to fund it. That means:

  • Investing directly in Queer-led organizations with unrestricted, multi-year funding.

  • Shifting power by inviting Queer and Trans leaders into decision-making spaces — not as tokens, but as peers.

  • Changing risk culture so that radical ideas are rewarded, not punished.

  • Auditing funding patterns to see who’s consistently left out. And fixing it!

Because the future of philanthropy won’t be built in boardrooms. It’s already being built in community centers, organizing spaces, and digital networks by the people philanthropy underfunds the most.

The Future of Philanthropy Is Intersectional

If we want a sector that thrives, we have to embrace leadership that reflects the world we serve. Queer, Trans, and BIMPOC leaders aren’t waiting for permission to innovate, but imagine what we could do if philanthropy actually funded us like it believed in our ideas!!

Join me and Daa’iyah Rahman at AFP LEAD 2025 for “The Future of Philanthropy is Intersectional: Leading with Inclusion for Maximum Impact.” We’ll explore how centering intersectional leadership and culture change can unlock the innovation philanthropy desperately needs.

Because the problem isn’t a lack of Queer creativity, oh no, it’s a lack of courage from the people holding the purse strings.

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>.

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