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The Fearless Fund Case

And Implications for Grants & Contracts

The Case

Understanding Section 1981 and Grants for Businesses of Color

From September 2024

Investing in Racial Equity Through Charitable Grants and Services from the Lawyers’ Committee for Civil Rights Under Law

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The Reporting

Investing in Racial Equity Through Charitable Grants and Services from the Lawyers’ Committee for Civil Rights Under Law

Read the full case summary: Fearless Fund Case Summary from the Council on Foundations

Read the Amicus Brief: Amicus Brief from the Council on Foundations

Watch: Video explainer on the Fearless Fund case

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More Detail

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Key Points

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Why It Matters for Nonprofits

“The Fearless Fund decision does not mean an end to racially informed grantmaking or nonprofit work... It is still lawful for organizations to have missions designed to advance racial equity. It is also fully lawful to explicitly discuss racism and discrimination. Specifically, charitable organizations can continue to discuss the effects of discrimination and justification for their racial equity programs on their organization websites and public facing materials.”

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Risker to Use Race as Criterion for Grants and Services

“The decision has created a landscape where using race as an explicit eligibility criterion for grants and services that could be interpreted as contracts is riskier. That said, there are many lawful ways to engage in grantmaking and programs to advance racial equity within this new landscape.”

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Investing in Racial Equity Through Charitable Grants and Services from the Lawyers’ Committee for Civil Rights Under Law


Further Reading

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Sourced from The Lawyers' Committee for Civil Rights Under Law

The Lawyers' Committee for Civil Rights Under Law is a nonpartisan, nonprofit organization formed in 1963 at the request of President John F. Kennedy to mobilize the private bar to provide legal services to address racial discrimination. Their guide "Investing in Racial Equity" provides practical legal guidance for philanthropic organizations seeking to advance racial equity within the current legal landscape.

One-page Primer: Investing in Racial Equity Through Charitable Grants and Services from the Lawyers’ Committee for Civil Rights Under Law

Sourced from the Council on Foundations

The Council on Foundations has tracked this case closely and filed an amicus brief arguing that philanthropies have a constitutional right under the First Amendment to donate to causes aligned with their values, including efforts to support historically marginalized groups. Their case summary provides detailed timeline and legal analysis.

Read the full case summary: Fearless Fund Case Summary from the Council on Foundations

Read the Amicus Brief: Amicus Brief from the Council on Foundations