Corporations become unlikely financiers of racial equity

In the months since the police killing of George Floyd sparked a racial reckoning in the United States, American corporations have emerged as an unexpected leading source of funding for social justice.

Corporate giving to racial equity causes has far outpaced donations from foundations and individuals since Floyd’s killing in May, according to the philanthropy research organization Candid.

Companies donated or pledged about $8.2 billion of the $12 billion in total contributions that were earmarked for racial equity — the “first time direct corporate giving to racial equity causes has reached this magnitude” — said Andrew Grabois, Candid’s corporate philanthropy manager.

Sizable commitments have come from corporations ranging from JPMorgan Chase, PayPal and Mastercard to Microsoft, Salesforce and the National Football League. Those pledges don’t even count other minority-focused investments, like a JPMorgan initiative to lend to minority home buyers and small businesses, that could eventually benefit the corporations themselves.

The trend signals a shift for large corporations, fueled by the evolving expectations of younger employees and consumers about corporate responsibilities to social causes. Advocates say the corporate money won’t be enough to soon achieve the racial equity in hiring, housing and policing or the investment in Black communities and institutions that they've sought. But it marks a start.

“The world is changing, and the expectations of how companies engage are changing,” said Brandee McHale, Citi’s head of community investing and development.

The catalyst, of course, was the graphic and widely viewed killing of Floyd last May at the hands of the Minneapolis police, with video footage showing the former officer Derek Chauvin pressing his knee against Floyd’s neck for about...