Posted: 29/04/2025
Since his inauguration at the start of the year, President Trump has taken significant steps to eliminate diversity, equity, and inclusion (DEI) initiatives within US non-profit organisations. Primarily taken through executive orders, these steps have raised concerns and sparked debates across a variety of sectors.
While the immediate impact is felt within the United States, the ripple effects of these policies could extend far beyond its borders, potentially influencing the UK charity sector. It is crucial for UK charities to understand these developments and their potential implications both for individual charities and the broader charitable landscape.
President Trump's executive orders aim to roll back DEI initiatives, which he argues undermine merit-based opportunities and promote illegal discrimination. These orders direct federal agencies to cease virtually all DEI-related activities, establish a federal policy recognising only two genders, and rescind positive action obligations on federal contractors. The Attorney General is also tasked with identifying private sector companies that the executive order of 21 January refers to as 'the most egregious and discriminatory DEI practitioners', which could lead to potential investigations and regulatory actions against such companies.
Despite what is happening across the pond, the UK is a long way from abandoning DEI initiatives. Last October, a new law came in, placing a positive duty on firms to protect their staff from sexual harassment, alongside the strong existing duties under the Equality Act, and protections against harassment are set to get stronger as part of the Labour government’s employment law reforms. In addition, these reforms will see a return of the requirement to publish policies on parental leave and of statutory discrimination questionnaires, which existed until 2014. However, developments in the US should not be underestimated, particularly for those organisations that operate internationally and have strong links with the US.
The UK charity sector is heavily reliant on funding from various sources, including grants, donations, and corporate partnerships. US-based foundations and corporations play a significant role in supporting UK charities, particularly those with an international focus. If these US entities face increased scrutiny or are compelled to eliminate DEI initiatives, this could lead to a reduction in funding for those charities in the UK that prioritise diversity and inclusion. This, in turn, could impact the ability of these charities to deliver essential services and support.
Many multinational corporations operate in both the US and the UK, and their CSR policies often reflect broader societal values and regulatory requirements. If US-based corporations are pressured to abandon DEI initiatives, there is a risk that their UK counterparts may follow suit. This could result in a shift away from DEI-focused programmes and initiatives within the UK charity sector, potentially undermining efforts to promote diversity and inclusion within the workforce and the communities they serve.
While the UK has its own legal framework governing charities and non-profits, the influence of US policies cannot be ignored. The Charity Commission and other regulatory bodies may need to consider the potential impact of these changes on UK charities, particularly those with strong ties to US-based entities. Additionally, UK charities may need to reassess their own DEI policies and practices to ensure compliance with evolving international standards and expectations.
Public perception and trust are critical to the success of any charity. The elimination of DEI initiatives in the US could lead to increased scrutiny and scepticism towards charities that prioritise diversity and inclusion. UK charities may need to proactively communicate their commitment to DEI principles and demonstrate the tangible benefits of these initiatives to maintain public trust and support.
As the UK charity sector grapples with the potential implications of President Trump's actions, it is essential for charities to remain vigilant and adaptable. Here are some key steps that charities can take to navigate these challenges:
1. Strengthen relationships with diverse funding sources
To mitigate the risk of reduced funding from US-based entities, UK charities should seek to diversify their funding sources and strengthen relationships with local and international donors who share their commitment to DEI principles. This may involve exploring new grant opportunities, engaging with corporate partners, and leveraging digital fundraising platforms.
2. Reinforce DEI commitments
UK charities may wish to reaffirm their commitment to DEI principles and ensure that these values are embedded within their organisational culture and practices. This may involve conducting regular DEI training for staff and volunteers, implementing inclusive hiring practices, and actively engaging with diverse communities.
3. Enhance transparency and accountability
Transparency and accountability are key to maintaining public trust. Charities should regularly communicate their DEI efforts and outcomes to stakeholders, including donors, beneficiaries, and the wider public. This may involve publishing annual DEI reports, sharing success stories, and participating in public forums and discussions.
4. Advocate for supportive policies
UK charities should actively engage with policymakers and advocate for supportive policies that promote diversity, equity, and inclusion within the sector. This may involve collaborating with other charities, participating in consultations, and contributing to policy discussions at local, national, and international levels.
While it may be premature to herald the death of DEI and the end of initiatives sparked by the #MeToo campaign, the winds of change coming out of the Trump administration cannot be ignored in the UK, especially by the not-for-profit sector. Charities, particularly those with international links, should pay attention to these developments and consider steps they can take now in order to mitigate any effects on their ability to serve their purpose.
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