SAN FRANCISCO (AP) – This year, numerous U.S. companies have pulled their support from pride events recognizing LGBTQ+ culture and rights, raising concerns about the commitment of American businesses to these causes and leading to significant budget shortfalls as summer festivals approach.
This shift coincides with President Donald Trump’s apparent resentment towards transgender protections, as he aims to roll back pro-LGBTQ+ federal policies. Experts also observe a growing indifference among the public toward corporations taking positions on social and political matters.
San Francisco Pride, a nonprofit responsible for one of the largest LGBTQ+ celebrations in the nation, is facing a $200,000 budget deficit due to the withdrawal of corporate donors. Similarly, Kansas City, Missouri, and KC Pride have experienced a loss of approximately $200,000, which is about half of their total annual budget.
The legacy of Pride, the organization behind NYC Pride and other LGBTQ+ events in New York City, is currently raising funds to bridge a $750,000 budget gap following the exit of several corporate sponsors.
Furthermore, Anheuser-Busch, the brewery behind Budweiser, has ended its long-standing sponsorship of PrideFest in St. Louis after 30 years, leaving organizers with a $150,000 shortfall.
In light of these developments, many pride organizations have canceled several dance parties, scaled back the number of stages, hired pricier headliners, and eliminated perks like free food and t-shirts for volunteers.
Nonetheless, the core celebrations persist. This year’s pride theme in San Francisco is “Queer Joy is Resistance.” In New York, it is “Stepping Up and Pride in Protest,” while in Boston, the theme is “Stay Here!”
“Attending Pride this year is a revolutionary act,” said Suzanne Ford, executive director of San Francisco Pride. “Your presence sends a message to Washington: we still hold the same values we’ve always had here in San Francisco. You can love who you want here; we will not back down.”
After media reports highlighted the withdrawals, some companies reconsidered their positions but opted for anonymous donations, according to event organizers.
Companies Rethink Pride Sponsorship
Earlier this year, San Francisco Pride lost support from five major corporate sponsors, including Guinness beer, Smirnoff vodka, Comcast, Anheuser-Busch, and Diageo.
“With everything we’re facing from the Trump administration, it felt like we were being abandoned, especially losing five partners in a matter of weeks,” Ford stated.
The Pride Group’s heritage will carry banners and balloons during the New York City Pride Parade held in New York on June 25, 2017. (AP Photo/Michael Noble Jr., file)
After the withdrawals gained attention, some companies stated they would provide support anonymously, Ford mentioned. As of this week, none of the sponsors such as Comcast, Anheuser-Busch, or Diageo were visible on the organization’s website for the June 29 festival. Their participation remains unclear.
Neither Anheuser-Busch nor Diageo responded to the Associated Press’s requests for comments. A spokesperson for Comcast declined to comment but mentioned that some companies are supporting Silicon Valley Pride and Auckland Pride.
NYC Pride spokesperson Chris Piedmont noted that around 20% of their corporate sponsors have retracted or reduced their support, affecting brands like Pepsico and Nissan.
Kyle Busemore, director of corporate communications for Nissan North America, indicated that decisions are being made to reassess all marketing expenses in light of recent developments. PepsiCo has not responded to requests for comments.
Piedmont added that NYC Pride has also received some anonymous corporate contributions and values the undisclosed support.
“Writing a check for nonprofits and backing those without strings attached is stepping up,” Piedmont said.
Companies Retreat from “Brand Activism”
This development illustrates how businesses are adapting to a shifting cultural landscape, a trend amplified during the pandemic and Trump’s subsequent term, experts indicate.
“Companies are adept at recognizing trends and assessing shifting consumer needs, but those needs evolve, requiring businesses to adapt,” they explained.
The frequent presence of brands at pride events surged following the 2015 Supreme Court ruling that legalized same-sex marriage nationwide, with businesses proudly displaying their names on parade floats and colorful merchandise.
This so-called brand activism peaked between 2016 and 2022 during a time of heightened social awareness amid the pandemic, incidents of police brutality, and discussions surrounding transgender rights, Glinstein remarked.
However, Barbara Kern, a marketing professor at the Wharton School, noted that many American consumers are increasingly opting to remain neutral on such subjects.
“There have always been people who say, ‘I don’t want to have an opinion on toothpaste; I just want to use it,’ and that trend appears to be increasing,” Khan commented.
Pride Organizers Distance Themselves from Certain Companies
Meanwhile, states led by Republicans have enacted regulations aimed at diminishing diversity, equity, and inclusion initiatives while curtailing LGBTQ+ rights. Concerns are especially notable for transgender youths in sports and gender-affirming care.
Trump reversed protections for transgender individuals with an executive order on his first day in office, effectively ending the federal government Day program.
In light of these changes, some companies have abandoned their DEI objectives and pressured pride organizations to sever connections.
San Francisco organizers ended their partnership with Meta due to the parent company of Facebook and Instagram having completed its DEI goals and modifying its content moderation policies.
Twin Cities Pride chose to discontinue its collaboration with Target after the Minneapolis retailer scaled back its DEI initiatives in response to conservative backlash and White House pressure, inciting a counter-boycott from civil rights advocates.
Target reported in May that its sales plummeted more than anticipated in the first quarter due to customer boycotts, tariffs, and other economic challenges, resulting in a limited offering of pride merchandise both in stores and online.
Despite this, Target’s chief commercial officer, Rick Gomez, affirmed in May the importance of celebrating heritage months that honor a diversity of communities, including Latinos, Asian Americans, and the LGBTQ+ community.
“They drive sales growth for us,” he asserted.
Seeking Financial Support from the Community
In the wake of Corporate America’s retreat, donations from individuals, foundations, and local businesses have notably increased.
In Minneapolis, a crowdfunding campaign for Pride successfully raised over $89,000, exceeding its $50,000 goal.
In San Francisco, two local foundations contributed $55,000.
“We’re thrilled to receive community support,” stated James Moran, a spokesperson for KC Pride in Kansas City. “Our community is looking for ways to connect and build a support network.”
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Anne D’Nynenzio, Associated Press retail reporter in New York City, contributed to this report.
Source: apnews.com