The Shifting LGBTQI+ Funding Landscape: Challenges and Opportunities

The social fabric is more connected than ever. This interconnection has been powerful—driving forward positive change like the expansion of same-sex marriage rights globally. But, as we know, progress and pushback go hand in hand. Right now, we’re witnessing a growing resistance to diversity, equity, and inclusion (DEI) initiatives, particularly targeting trans and gender-diverse communities.

In the U.S., the federal government’s stance has emboldened industries, sporting bodies, and social groups to roll back LGBTQI+ rights, particularly for trans and non-binary people. Australia is showing similar signs—the Queensland Government has cut critical services for trans and gender-diverse young people, and the federal opposition leader has openly called for DEI policies to be scaled back in government, along with winding back First Nations cultural recognition at events.

For LGBTQI+ NGOs, these shifts aren’t just ideological—they’re financial. The funding landscape is changing fast, and organisations need to act now.

Funding Challenges: The Early Warning Signs Are Here

LGBTQI+ organisations have always been underfunded relative to the scale of need. We’ve operated in a space where demand for services grows year-on-year, but core funding remains precarious. Now, we’re seeing signs that corporate sponsorship and government support are tightening up.

• Corporate sponsorship is becoming more cautious. Some brands, worried about backlash, are stepping away from publicly funding LGBTQI+ initiatives. Others are redirecting funds to less politically charged areas of DEI.

• Government priorities are shifting. While some federal and state bodies continue to provide strong support, others are moving to cut funding, especially for trans and gender-diverse programs.

This is an early warning. Funding for LGBTQI+ programs is not going to disappear overnight, but if organisations don’t adapt now, we risk finding ourselves in a funding crisis in the near future.

The Need for a Strategic Shift

LGBTQI+ organisations—and the broader NGO sector—must take a methodical, proactive approach to repositioning for long-term sustainability. The reality is that funding environments shift all the time, and the organisations that survive are those that plan ahead rather than react in the moment.

Here’s where we need to focus:

1. Repositioning Funding Strategies

We can’t afford to rely on the same funding sources and assume they’ll stay consistent. It’s time to:

• Diversify income streams—look beyond traditional corporate sponsorships and government grants.

• Strengthen relationships with progressive donors and international funding bodies.

• Tap into grassroots crowdfunding and community giving, leveraging the power of collective fundraising.

• Explore social enterprise models that create self-sustaining revenue streams.

2. Prioritising Core Programs

Now is the time for every organisation to assess: Which programs create the most impact?

• Identify core services that must be protected and ensure they remain funded.

• Develop stronger impact measurement tools—funders want to see clear data on what their money achieves.

• Be prepared to make tough calls on projects that aren’t sustainable or don’t align with future funding trends.

3. Strengthening Financial Resilience

• Build financial reserves where possible to cushion against future cuts.

• Reduce reliance on single funding streams—spread risk across multiple sources.

• Invest in fundraising capability to future-proof revenue generation.

4. Owning the Narrative & Advocacy

This isn’t just about funding—it’s about visibility and ensuring LGBTQI+ communities aren’t erased from public discourse. We need to:

• Tell our stories. Data is important, but personal stories shift perspectives. LGBTQI+ organisations must double down on storytelling that highlights the real-world impact of our work.

• Be loud. The opposition is getting more vocal, so we can’t afford to be quiet. We need to keep advocating for LGBTQI+ rights at every level—politically, socially, and within corporate spaces.

• Strengthen alliances. This fight is bigger than any one organisation. LGBTQI+ NGOs need to work together, share resources, and present a united front.

What Comes Next?

This is a challenging moment, but not an impossible one. The organisations that thrive will be those that are proactive, adaptable, and willing to rethink old funding models.