Austin area nonprofits say they're struggling without DEI funding

Austin (KXAN) — Nearly one year since the state's ban on diversity, equity and inclusion at public universities went into effect, local nonprofit leaders are reflecting on how they've adapted since its implementation.

Senate Bill 17 went into effect on January 1, 2024, and its impact has been felt through the months since.

This past spring, the University of Texas at Austin cut hundreds of positions and shut down its 21 DEI offices to comply with SB 17.

On Giving Tuesday, Piper Stege Nelson, executive director of I Live Here I Give Here -- the hub that coordinates donations to more than 700 area nonprofits -- said some nonprofits are struggling more since the law went into effect.

“We are hearing more and more stories of nonprofits that are actually really having a hard time right now. Whether they have lost some funding due to political DEI issues, or whether they have just seen a downturn since the pandemic,” Stege Nelson said.

Dr. Johanna Moya Fabregas is the executive director of Con Mi Madre, a nonprofit that helps Latina students navigate the education world.

Fabregas said the ultimate goal of the program is to erase barriers that could deter participants from seeking higher education and, by extension, a higher quality of life.

She estimates that less than 10% of the nonprofit's funding comes from DEI-related sources, but that SB 17 has made a noticeable impact on the education world overall.

Fabregas said the biggest change she and others in the nonprofit space have faced is slowed or stalled partnerships with education institutions.

She said that's largely due to those systems re-evaluating which mentorships, partnerships, or financial support are permissible under the law. As that happens, Fabregas said resources for nonprofits can become strained.

"There could be funding sources that are not DEI specific, but because all of the organizations that lost DEI funding are looking to sustain their work, then they're going to go to these other sources," Moya Fabregas said.

Moya Fabregas said the nonprofit's mission remains the same, even without the slight financial help DEI partnerships provided, but now with a bigger focus why programs like this are important.

"We have access to creating awareness, to sharing with legislators the work that we're doing with sharing student voices, so that they know how students feel navigating these processes," Moya Fabregas said.