Chan Zuckerberg Initiative Faces Scrutiny Over Grant Suspensions and Shift Away From DEI
The Chan Zuckerberg Initiative (CZI), a philanthropic organization founded by Mark Zuckerberg and Priscilla Chan, is under increasing scrutiny following a series of grant suspensions, particularly affecting nonprofits focused on diversity, equity, and inclusion (DEI) efforts. While CZI maintains that this shift is part of a long-term strategy to prioritize scientific research aimed at curing diseases, current and former employees suggest a different narrative, pointing towards concerns about political targeting and potential litigation.
Established in 2015, CZI was envisioned as a vehicle for addressing pressing social issues, with a mission to "build a more inclusive, just, and healthy future for everyone." The couple pledged 99% of their Meta shares to the organization, a commitment currently valued at approximately $100 billion. Over the past decade, CZI reports having distributed nearly $7 billion in grants, including substantial funding to nonprofits in San Mateo County, where Meta is headquartered.
However, recent months have witnessed a noticeable change in CZI’s grant-making practices. Several nonprofits, particularly those with a DEI focus, have had their funding suspended or not renewed. Juan Hernandez, CEO of Creser Capital Fund, which provides loans to Latino entrepreneurs, recently learned that his CZI grant would not be renewed. Similarly, The Mercury News reported that CZI has cut funding for local homelessness and affordable housing groups.
These funding cuts coincide with an internal announcement made in February, in which CZI informed its employees of its intention to wind down its DEI work, both internally and externally. COO Marc Malandro addressed the issue in a message posted on the CZI website, stating that while the organization remained committed to "ensuring our work serves everyone" and "building a workforce that reflects a broad range of experiences, thoughts, and opinions," it would be shifting its focus away from political and social advocacy. This included eliminating its Diversity, Equity, Inclusion and Accessibility team, citing the "shifting regulatory and legal landscape," and discontinuing its "Diverse Slate" hiring practices, which aimed to ensure the consideration of candidates from underrepresented backgrounds for various roles.
The San Francisco Standard interviewed current and former CZI employees who shed further light on these recent changes. Two employees recounted an internal meeting where General Counsel Mark Kim reportedly explained that the organization has become a "political target" due to its billionaire co-founders, one of whom has cultivated relationships with the Trump administration. Kim suggested that the changes were driven by a desire to avoid potential litigation.
In response to the Standard’s reporting, a CZI spokesperson disputed the notion that the changes stemmed solely from a desire to avoid lawsuits, asserting that the organization’s strategy is "driven by our science vision to cure, prevent, and manage all disease by the end of this century."
Despite the shift towards scientific research, CZI maintains that it remains committed to serving the local community, primarily through its Community Fund. This fund has provided $35 million over the past eight years to support "local organizations doing essential work throughout San Mateo County." However, one former grantee revealed that she was informed by CZI that she was "no longer eligible" to apply for a grant from the fund. Adriana Ayala, who leads the Chicana Latina Foundation, stated that a CZI program officer told her that this was due to her foundation’s focus on a targeted population, namely Latinas. Ayala quoted the program officer as saying, "In this political climate, targeted populations are frowned upon, or they’re seen as DEI."
The changes at CZI closely follow similar actions taken by Meta, which recently announced the end of its fact-checking program on social media and the winding down of its internal DEI efforts, including the "Diverse Slate" practices it shared with CZI.
The Guardian reported that the changes at Meta caused concern at CZI, with employees questioning in a Slack group whether CZI would "reaffirm" the organization’s values. At the time, Mark Gundacker, CZI’s Head of People, assured employees that CZI’s policies and governance remained entirely separate from Meta’s and that "Meta’s changes to its DEI efforts does not impact ours." He emphasized this point, instructing managers to "reaffirm this for them and we’ll continue to do the same whenever the question comes up."
The shift in CZI’s focus has raised questions about the organization’s long-term commitment to social justice and its ability to fulfill its founding mission of creating a more inclusive and equitable future. The decision to cut funding to nonprofits working on DEI issues, while simultaneously claiming a commitment to serving all communities, has been met with skepticism and criticism. The organization faces the challenge of reconciling its stated goals with its evolving priorities and addressing the concerns raised by employees and grantees alike. The future direction of CZI and its impact on the philanthropic landscape remains to be seen. The organization’s decisions in the coming months will be closely watched by those concerned with social justice, equity, and the role of philanthropy in addressing pressing societal challenges.
