Pride events face budget shortfalls as US corporations pull support ahead of summer festivities

SAN FRANCISCO — Many U.S. corporations this year stopped supporting Pride events that celebrate LGBTQ+ culture and rights, causing hundreds of thousands of dollars in budget shortfalls ahead of the summer festivities and raising questions about corporate America's commitment to the cause.

The moves come as President Donald Trump has shown antipathy for trans protections and has attempted to roll back some LGBTQ+ friendly federal policies. Experts also note that a growing slice of the public has grown tired of companies taking a stance on social and political issues.

San Francisco Pride, the nonprofit that produces one of the country's largest and best-known LGBTQ+ celebrations, is facing a $200,000 budget gap after corporate donors dropped out. In Kansas City, Missouri, KC Pride lost about $200,000 — roughly half its annual budget.

Heritage of Pride, the umbrella organization behind NYC Pride and other LGBTQ+ events in New York City, is fundraising to narrow a $750,000 budget gap after companies withdrew.

Meanwhile, Budweiser brewer Anheuser-Busch ended its sponsorship of PrideFest in St. Louis, Missouri, its home base, after 30 years, leaving organizers with a $150,000 budget shortfall.

In response, many Pride organizations have canceled some dance parties, reduced the number of stages, hired less pricey headliners and no longer give volunteers free food or T-shirts.

But the core celebrations will go on. In San Francisco, this year's Pride theme is ''Queer Joy is Resistance.'' In New York, it's ''Rise Up: Pride in Protest,'' and, in Boston, it's ''Here to Stay!''

''If you come to Pride this year, that's a revolutionary act,'' said Suzanne Ford, executive director of San Francisco Pride. ''You are sending a message to those in Washington that, here in San Francisco, we still have the same values that we've always had — you can love who you love here. We're not going to retreat from that.''

Following media coverage of their retreat, some companies changed course but asked that their names not be affiliated with the events, the event organizers said.

Corporations rethink Prid

e sponsorships

San Francisco Pride earlier this year lost the support of five major corporate donors, including Comcast, Anheuser-Busch and Diageo, the beverage giant that makes Guinness beer and Smirnoff vodka.

''With everything we're facing from the Trump administration, to lose five of your partners within a couple of weeks, it felt like we were being abandoned,'' Ford said.

After the withdrawals drew attention, some corporations said they would donate but only anonymously, Ford said, declining to identify those companies. As of this week, neither Comcast, Anheuser-Busch nor Diageo appeared on the organization's website as sponsors of the June 29 festivities. It was unclear if they donated.

Anheuser-Busch and Diageo didn't reply to emails from The Associated Press seeking comment. A spokesperson for Comcast also declined to comment but said some of its companies are sponsoring Silicon Valley Pride and Oakland Pride.

NYC Pride spokesperson Chris Piedmont said about 20% of its corporate sponsors either dropped their support or scaled back, including New York-based PepsiCo and Nissan.

Kyle Bazemore, Nissan North America's director of corporate communications, said the decision comes as the automaker reviews all of its marketing expenses to lower costs. PepsiCo did not return an email seeking comment.

Piedmont said NYC Pride has also received anonymous corporate funding and that he appreciates the unpublicized support.

''Writing a check to a nonprofit and supporting a nonprofit with no strings attached is stepping up to the plate,'' Piedmont said.

Companies retreat from ‘brand activism'

The shift reflects how corporations are adjusting to a changing cultural landscape that began during the pandemic and accelerated with Trump's second term, experts said.

''Companies are resourceful, they are clever at identifying trends and studying their environment and their customers' needs, but those needs change and corporations adjust,'' said Amir Grinstein, a marketing professor at Northeastern University.

Corporations' presence in rainbow-filled Pride parades, concerts and dance parties became more ubiquitous after the landmark 2015 Supreme Court ruling that legalized same-sex marriage nationwide, as companies splashed their names on parade floats, rainbow flags and bright plastic bracelets.

So-called brand activism reached its peak between 2016 to 2022, a period of social upheaval around the pandemic, police brutality and transgender rights, Grinstein said.

But research has since found a growing number of American consumers don't want companies taking positions on such topics, said Barbara Kahn, a marketing professor at the University of Pennsylvania's Wharton School.

''There have always been people who said, ‘I don't want my toothpaste to have an opinion, I just want to use my toothpaste,' but the tide has shifted, and research shows there are more people that feel that way now," Kahn said.

Pride organizers keep their distance from some corporations

Meanwhile, Republican-led states have been passing legislation to curtail diversity, equity and inclusion initiatives and LGBTQ+ rights, especially the ability of transgender young people to participate in sports or receive gender-affirming care.

Trump signed executive orders on his first day in office that rolled back protections for transgender people and terminated federal DEI programs.

Some companies followed suit by eliminating their DEI goals, prompting Pride organizations to sever ties.

San Francisco's organizers cut ties with Meta after the parent company of Facebook and Instagram terminated its DEI goals and content moderation policies.

Twin Cities Pride ended its relationship with Target over the Minneapolis-based retailer's curtailing of its DEI initiatives following a backlash from conservatives and the White House. The company's retreat from DEI policies led to a counter-boycott by civil rights advocates.

Target announced in May that sales fell more than expected in the first quarter due to customer boycotts, tariffs and other economic factors. The company now offers only some Pride products at a few stores and online.

Still, Rick Gomez, Target's chief commercial officer, told reporters in May that it's important to celebrate Heritage Months, which highlight different groups from Latinos to Asian Americans to the LGBTQ+ community.

"They drive sales growth for us,'' he said.

Asking the community for financial support

First-time donations from individuals, foundations and local businesses have increased following corporate America's retreat.

In Minneapolis, a crowdfunding campaign by Twin Cities Pride to fill a $50,000 funding gap raised more than $89,000.

In San Francisco, two local foundations donated $55,000 combined.

''This isn't the first year that there's been an inflammatory climate around Pride,'' said James Moran, a spokesperson for KC Pride, in Kansas City, Missouri. ''We know that our community is looking for spaces that are meant for us, where we can celebrate but also process what's going on and build our own support networks.''

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Associated Press retail reporter Anne D'Innocenzio in New York City contributed.