In a surprising turn of events, numerous U.S. corporations have dialed back their support for Pride events this year, leading to significant budget deficits for these celebrations. This shift has sparked debate regarding corporate America’s dedication to LGBTQ+ rights and culture.
President Trump’s administration has shown resistance towards transgender protections and has actively attempted to overturn policies favorable to the LGBTQ+ community. Experts argue that many people are growing increasingly weary of businesses aligning themselves with social and political causes.
One prominent casualty of these pullbacks is San Francisco Pride, a major nonprofit organization known for hosting one of the largest LGBTQ+ celebrations in the U.S. They are now grappling with a $200,000 budget shortfall due to corporate sponsors stepping back. Kansas City’s KC Pride, too, suffered a considerable loss of approximately $200,000, which represents about half of its yearly operating budget.
In New York, Heritage of Pride, the organization behind NYC Pride, is tirelessly working to cover a $750,000 budget gap, the result of corporate withdrawals. Additionally, Anheuser-Busch has ceased its 30-year sponsorship of St. Louis, Missouri’s PrideFest, causing a $150,000 deficiency.
These financial struggles have forced many Pride organizations to make difficult cuts. Events such as dance parties have been canceled, the number of stages reduced, and more affordable headline acts contracted. Moreover, volunteers will no longer receive complimentary food or T-shirts.
Despite these setbacks, the essence of the celebrations will persist. San Francisco’s Pride this year carries the theme “Queer Joy is Resistance,” with New York’s motto being “Rise Up: Pride in Protest,” and Boston proclaiming “Here to Stay!” Suzanne Ford, the executive director of San Francisco Pride, emphasizes that attending Pride remains an act of defiance and commitment to enduring values.
Following the negative publicity of their withdrawal, some companies did reconsider their decisions but preferred remaining unnamed in their support, according to event organizers.
San Francisco Pride experienced the loss of several major sponsors such as Comcast, Anheuser-Busch, and Diageo, the maker of well-known brands like Guinness and Smirnoff. Ford noted the abrupt drop in partner support during a precarious time for LGBTQ+ rights, describing the feeling as abandonment.
Though some companies reconsidered and offered subjectively anonymous financial support, their names have not appeared on event sponsorship lists. Anheuser-Busch, Diageo, and others have otherwise remained silent, while Comcast has pointed to its involvement with other local Pride events.
NYC Pride has experienced a similar trend, with nearly 20% of corporate sponsors either scaling back support or withdrawing entirely, including giants like PepsiCo and Nissan. Nissan indicated that their decision was part of a broader attempt to cut marketing expenses. PepsiCo didn’t respond for comments.
While such corporate behavior highlights a shift in societal and commercial dynamics since the 2016-2022 period that Grinstein described as peak brand activism, Wharton School’s Barbara Kahn suggests that more consumers today prefer their products without political alignments.
In the backdrop of these corporate withdrawals, Republican-led legislative actions have threatened diversity and LGBTQ+ rights, motivating some Pride organizations to distance themselves from companies reducing their commitment to diversity initiatives.
For example, Meta witnessed its ties cut with San Francisco Pride after altering its content moderation and DEI objectives. Similarly, Twin Cities Pride ended relations with Target over similar policy changes after consumer backlash.
Despite some financial losses, some advancements have been noted following a community-driven response. Twin Cities Pride raised over $89,000 through local crowdfunding efforts to close a $50,000 gap. San Francisco saw contributions from local foundations totaling $55,000.
James Moran of KC Pride underscores that in challenging times, the community seeks spaces not only for celebration but for rebuilding and supporting each other.