NEW YORK — Target’s decision to scale back its efforts on diversity, equity, and inclusion (DEI) is prompting discussions about the retail giant’s ongoing support for philanthropic initiatives focused on addressing racial inequities and upholding progressive ideals, particularly in its liberal home city of Minneapolis and beyond.
In recent years, Target and the Target Foundation have made substantial six-figure donations to organizations dedicated to empowering Black communities and fostering acceptance of LGBTQ+ individuals. While “racial equity” remains a vital part of the foundation’s local funding strategy, many fundraisers are left questioning whether these priorities will continue to take center stage as Target aligns with other major American corporations in retracting its internal DEI programs, a move criticized during President Donald Trump’s administration.
The White House previously stated that significant funding allocated for DEI efforts has not necessarily led to the intended reduction of biases or enhancement of inclusivity but instead may have heightened societal hostilities and interpersonal conflicts. Following the outcry after George Floyd’s tragic death in 2020, several corporations, including Walmart, Amazon, and Meta, are revising their policies aimed at combating discrimination. Philanthropic advisors observe that the backlash from conservative groups has cast uncertainty on the funding landscape for race-focused nonprofit initiatives, especially after legal challenges hampered programs like the Fearless Fund’s grants for Black women entrepreneurs.
On January 24, Target disclosed plans to discontinue its previously established DEI targets aimed at enhancing Black employee representation, improving shopping experiences for Black customers, and bolstering Black-owned businesses. The company’s strategy now also includes ceasing submissions to certain external diversity assessments, such as the Human Rights Campaign’s Corporate Equality Index, while reevaluating its corporate partnerships to align them more closely with its growth roadmap, as noted in a memo on its website.
While Target did not specify how these alterations may affect its philanthropy, which accounted for $384 million in donations and products last year from the corporation and its foundation, a spokesperson emphasized that philanthropy remains a significant avenue for community engagement, including in the Minneapolis-St. Paul area.
The spokesperson affirmed that the recent decisions won’t impact the giving practices of the Target Foundation, which will continue to assess its support for various organizations and initiatives. Additionally, the Target Circle community giving program — allowing loyalty program members to choose nonprofits for support — remains unchanged; however, the organization did not clarify how the internal adjustments might influence its corporate giving.
“Whenever corporate leadership shifts its priorities, it raises concerns among those in philanthropy about potential impacts on both ongoing and future funding,” remarked Kat Rohn, Executive Director of OutFront Minnesota, which advocates for LGBTQ+ rights but does not partner with Target.
The changes have already altered how Twin Cities Pride views its partnership with Target. Executive Director Andi Otto recounted his exchange with Target while seeking to renew the nonprofit’s sponsorship for LGBTQ events, which traditionally received about $50,000 from the retailer. During a recent meeting, Target executives expressed their intention to continue the sponsorship but indicated they would retract their internal DEI measures. Otto appreciated the transparency but ultimately chose to decline Target’s sponsorship after discussions with his board about the implications of Target’s decisions on the community they support.
Otto emphasized that it’s not just about financial support; it’s also crucial for corporations like Target to actively promote opportunities for BIPOC and LGBTQ-owned businesses within their stores. He noted previous concerns when Target opted not to stock Pride Month merchandise following backlash last year, prompting fears of further declines in support for the LGBTQ community.
Progressive activists are now rallying to boycott Target, with Nina Turner’s advocacy group We Are Somebody urging consumers to shift their purchases to minority-owned brands. In alignment with this movement, at least one Black-owned business, Oh Happy Dani, has initiated the removal of its products from Target’s shelves.
Corporate philanthropic efforts have long been a reliable form of substantial funding for nonprofits. Target has maintained a prominent role in the Twin Cities and is praised for its contributions to education, arts, and diversity initiatives. The combination of Target and the Target Foundation ranked as the fifth-largest corporate givers in Minnesota last year, according to local philanthropic reports.
However, Rohn indicated that corporate philanthropy can sometimes place nonprofits in difficult positions, forcing them to weigh their values against funding necessities. She believes more nonprofits may follow Twin Cities Pride’s example by distancing themselves from corporate sponsors when their missions diverge from sponsor policies.
In fact, Twin Cities Pride reported raising over $50,000 since parting ways with Target as a sponsor, with individual donations making up more than half of this total. Otto noted that the Minneapolis Foundation also contributed.
“Currently, uncertainty pervades the LGBTQ nonprofit sector as we grapple with the potential decisions of corporations and their consequences,” Otto reflected. “There’s a consensus that stepping away from Target was the right choice, and with unity, we can persevere through this challenging time.”
