The era of Corporate Pride is over

Yahoo

03-04-2025

This is going to be a "strange" year for Pride, Kevin Kilbride says, given everything that's going on. About one-third of New York City Pride's corporate partners are still holding back their sponsorship dollars this year, with just a couple of months to go before the event, explains Kilbride, who handles media and marketing for the organization. "That is unusual," he says. "We've seen folks moving a little bit more cautiously, what they would say is strategically."
Some sponsors have expressed political concerns, pointing to the White House's antagonistic stance on diversity, equity, and inclusion and the current climate more broadly. Others are gesturing at tariffs or general economic instability as the cause for their hesitation in committing big money, which organizers have to take at face value, even if it's hard to imagine the politics aren't part of the calculation. Case in point: Kilbride says that a "pretty significant" corporate sponsor has asked to be a silent partner of this year's New York Pride, though it hasn't scaled back its funding.
"Our businesses have long been a leader in trying to support this community and push this movement forward and more into the spotlight," Kilbride said. "And it's unfortunate that that not across the board seems to be shared by all of the former partners."
LGBTQ+ Pride month is close on the horizon, in June, and organizers of events, marches, and celebrations across the country are in the final stages of securing funding and sponsorships. In contrast to years past, when, if anything, the complaint was that Pride had become too corporate, planners are encountering a much different, colder scenario. This year, businesses are anxious about their involvement. While some are sticking to it, others are scaling back donations or declining to participate entirely. They're scared of the Trump administration's anti-DEI stance and threats of retribution. They're worried about the potential social media backlash. And they're reacting accordingly.
"There's a variety of responses. One is there is obviously retreat," said Bob Witeck, a communications strategist focused on the LGBT business community. "A number of companies have made the decision that this is a fraught environment in which to take part."
San Francisco Pride has had several big sponsors back away this year, including Anheuser-Busch, Comcast, Diageo, and Nissan. It may be on track for a $200,000 shortfall in its anticipated $4.1 million budget. Suzanne Ford, the executive director of San Francisco Pride, said the companies backing away have been wishy-washy about why.
"Obviously, the Trump administration and the war on diversity, equity, and inclusion, I think, has affected some corporations' decisions about who they sponsor," she said. "Some corporations are hedging their bets, not trying to inflame one side or the other and trying to just stay out of the fray."
The public attention on the dropouts has helped inspire other sponsors to jump in and fill the gap, Ford said, including Levi's, which is returning after a three-year hiatus, Benefit Cosmetics, and La Crema wines. As news about withdrawals trickled out, San Francisco Pride also brought in $30,000 in donations from individuals last month, and organizers believe some companies could still make donations even if they choose not to officially sponsor. Pride is a boon for San Francisco: A 2015 economic impact study found it injected $350 million into the local economy every year, thanks to more than half a million visitors attending the two-day celebration. Ten years later, Ford thinks that number could be $1 billion as crowds have continued to grow.
"Pride, over its history, has faced difficult times, and we've always found a way, and we'll find a way now," she said.
A Diageo spokesperson said that Diageo plans to participate in events around Pride in San Francisco, such as offering promotions at bars through its Smirnoff brand. Comcast, Anheuser-Busch, and Nissan did not respond to requests for comment.
Ryan Bos, the executive director of the Capital Pride Alliance in Washington, DC, said a number of sponsors have dropped out of this year's event, including Booz Allen Hamilton, a consulting firm and major federal contractor that could, in theory, find itself in the crosshairs of some of Trump's DEI-related executive actions.
"As you can imagine, being in the nation's capital, a lot of advocates we work with either have federal contracts or definitely receive federal funding," he said.
In an email, a Booz Allen spokesperson said the company is committed to supporting all of its employee communities and celebrating tribute months. They said the decision not to be a headline sponsor this year "does not reflect any pullback of support to this community."
I think there is a level of fear.
Denver Pride has seen a decrease in funding for its events, which include a festival, parade, and 5K race. Natalie Zanoni, the organization's interim CEO, said in an email that among those who sponsored Denver's 2024 Pride and are coming back this year, average contributions have decreased by 62%. Other sponsors aren't coming back at all. She noted that Denver's Pride is unique in that it doubles as an annual fundraiser for Denver's local LGBTQ+ community center, The Center on Colfax, meaning the decline in sponsorship money will affect more than the size of parade floats. "The decrease in funding we are experiencing puts these critical services at risk, such as mental health support, programming for our trans and gender diverse community, youth, older adults, and more," she said. While they are "disappointed" by the situation, the group doesn't want to call out specific funders. "We also recognize that these decisions do not reflect the views and opinions of everyone within the organizations in question," Zazoni said.
Kojo Modeste, the executive director of Pride Toronto, said that Nissan Canada is the only company that's publicly announced its exit from the city's event. The company said in an email that it was a "local decision solely due to a reevaluation" of its marketing and media activations in a "variety of activities." However, Modeste said "quite a few" other sponsors have quietly pulled out. Many of the corporations haven't provided a detailed justification, though most are based in the US, which, given the current economic headbutting between the two countries, adds another element. "It sends a message without sending the message, without them telling us exactly that they're pulling out for these reasons," Modeste said. "I think there is a level of fear."
Some smaller Canadian sponsors are trying to step in to help fill the gap, which Modeste is grateful for, but their generosity will still leave the organizers with a shortfall. "The cost of doing the festival year after year keeps going up," Modeste said. "Even if we were to gain back 50% of that loss, it is not going to cover that big gap that is left."
We're really back to, in a sense, what Pride was originally intended to be.
It's not just the large Pride events that are seeing pullbacks. Jessica Laney, the president of Pikes Peak Pride in Colorado Springs, said the event has never really had large corporate sponsors. It's generally relied on grassroots support and smaller entities, but they've scaled back this year, too. Pikes Peak is seeing fewer sponsors at their $5,000 and $10,000 tiers, which represent some of their highest levels of giving. Government grants have dried up, too. "Those are pretty much gone now," Laney said. On the more encouraging side, they've had an uptick in smaller contributors, say, at the $1,000 level. "It's kind of like a change off," she said.
Pikes Peak Pride is still below where it was last year in terms of sponsorship dollars, but the group hopes more money will come in. It's being more proactive about outreach and doubling the number of fundraisers it hosts.
Alexander Clark, the board president of 406 Pride, which hosts Billings Pride Fest in Montana, said they've had some new sponsors jump in, including a large local hotel chain, and as of now, one of its five major sponsors is returning — and increasing its donation. As for the other four major donors, Clark said the organizers are taking a cautiously optimistic approach. "As we're approaching some of the bigger sponsors, though, we're expecting to get some pushback, because some of the companies that have participated in the past may not have that same DEI focus," he said.
406 Pride is what Clark admits is a "unique" organization and location, given that it's in a deep-red county in a deep-red state.
"Folks seem to have a 'keep to their own' mentality," he said. If they're part of the queer community, they'll come out, but if not, they "don't really bother with us."
That means in terms of sponsors, it's always been a more thoughtful decision to participate. This year, Clark is hoping partners will come back and then some, because organizers are taking a number of new — and more expensive — safety measures. They're installing concrete barriers instead of wooden ones and are hiring a security firm to back up local police. "I'm not taking any chances this year," he said.
These decisions to scale back Pride support aren't happening in a vacuum — they're taking place in a context when many corporations are afraid to engage in anything that might appear DEI-esque.
The White House has pledged to root out what it's characterized as "illegal DEI" from the federal government, government contractors, and, where possible, private companies and is seeking to make examples out of specific entities it believes have gone too far. Some conservative social media influencers are on the hunt for targets to rile up their followers about. Businesses don't want to be caught up in whatever the controversy of the day is, or the one that pops up tomorrow, or the day after that. This has led a number of major companies to scale back their DEI practices. Some have eliminated or overhauled programs aimed at underrepresented consumers, vendors, and employees, including the LGBTQ+ community, and have scrubbed mention of certain diversity-related terms from their websites, financial filings, and other documentation. Take Target: It faced blowback last year over its Pride merchandise collection and wound up scaling it back, even though the collection wasn't markedly different from anything it had done in previous years.
"If you and I were talking five years ago, the bigger issue was corporate exploitation," Witeck said. "So we're really back to, in a sense, what Pride was originally intended to be. It was sort of a civil rights activation."
He added that some companies, instead of sponsoring celebrations or parades, are donating to community causes instead. "In some respects, that's a positive move," he said.
Fabrice Houdart, a human rights advocate who focuses on LGBTQ+ rights and corporate social responsibility, pointed out that the Trump administration has not targeted Pride, including this year's World Pride, which will happen in Washington, DC. In Houdart's mind, companies may just be taking advantage of the opportunity to walk away from initiatives they were never really that attached to in the first place.
"Right now, the wind is not very pro-LGBT and therefore they're thinking, 'Well, I'm just going to throw out the baby with the bathwater and run away from that community as quickly as I can,'" he said. "In many ways, what it shows is that there was some amateurism in the way the company expressed their values."
It's very, very hard to make that happen without corporate support.
All of the Pride organizers I spoke to expressed disappointment about former sponsors' handling of this year's events. Parades, festivals, and other gatherings cost money to put together, and less money may mean they could need to scale back their plans, though, in certain areas, such as security, medical services, and insurance, there's no compromising.
"People are getting the message that Pride is fragile. It always has been and always be," Ford said.
Historically, some corporations have been ahead of the curve on LGBTQ+ rights — General Motors, for example, extended marriage benefits to same-sex couples before same-sex marriage was legalized nationwide. Organizers also said they were starting to look for more grassroots, individual support going forward so that they won't be so reliant on big business and whatever cultural and political tides they're reacting to.
"You've got a free event that we're trying to make as accessible to as many people as we can. It's very, very hard to make that happen without corporate support," Kilbride said. "It's still, I think, going to end up being on the queer community. In my opinion, we are our own sponsors during Pride Month, so I think that's kind of what the future is headed towards."
In the meantime, New York City Pride is planning to get fundraising for this year wrapped by the beginning of May. Some of the attention on sponsors dropping out is bringing some of them back to the table, and there's hope additional visibility could inspire other companies to step up — corporate anxiety works both ways.
Emily Stewart is a senior correspondent at Business Insider, writing about business and the economy.
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