Corporate Sponsors Pull Back from 2025 Pride Festivals, Prompting Calls for Authentic Allyship

May 28

Pride Sponsorships Wane Amid Political Backlash and Economic Jitters

Major LGBTQ+ Pride festivals across the U.S. are facing an unprecedented retreat of corporate sponsorship in 2025, with organizers reporting significant funding shortfalls. Companies that once eagerly attached their brands to Pride celebrations are scaling down or withdrawing support, citing budget constraints as well as an increasingly hostile political climate.

In past years, big-name sponsors were “loud and proud” in supporting LGBTQ+ events, but the landscape has shifted. Surveys indicate that 61% of companies felt pressure from the Trump administration’s anti-DEI stance, causing them to rethink Pride participation, and 39% planned to reduce Pride support after a recent executive order curtailing diversity programs.

This pullback comes amid cultural polarization on LGBTQ+ issues - from debates over transgender rights to right-wing boycotts - which has made some brands view public Pride support as a potential risk to their bottom line.

Crowds with rainbow flags line the streets during NYC Pride 2024. This year, organizers in New York and elsewhere face smaller floats, fewer corporate logos, and tighter budgets as major sponsors scale back their Pride contributions.

The funding fallout is widespread. Pride organizations in cities like New York, San Francisco, Seattle, and Minneapolis are reporting six-figure sponsorship deficits, forcing them to scale back events or find alternative funding. “For this many companies to be dropping off…we’re in a different political environment than we have been maybe in a long, long time,” observed Suzanne Ford, executive director of San Francisco Pride. Many corporations officially point to economic uncertainty for cutting back. However, Pride leaders note that these decisions coincide with a wave of anti-LGBTQ+ rhetoric and policy – creating what New York City Pride spokesperson Kevin Kilbride calls “a new reality” in which sponsors are “treading carefully” and worried about “potential blowback from this current administration” if they are too visibly supportive. In short, corporate Pride support that once seemed routine has become fraught in 2025’s charged atmosphere.

NYC Pride: Big Sponsors Exit, Budget Shortfall Hits “New Reality”

New York City’s Pride festivities - among the nation’s largest - have been hard hit by sponsor withdrawals. Heritage of Pride (NYC Pride’s organizing committee) announced it is facing a budget shortfall of up to $750,000 this year. Multiple longtime sponsors abruptly pulled or pared back funding. For example, Mastercard opted not to renew its sponsorship after a decade as a top-tier (“Platinum”) backer, and PepsiCo, Nissan, Citi, and PricewaterhouseCoopers also bowed out for 2025. Four of last year’s five Platinum-level sponsors (including Mastercard and Target) have dropped out, leaving only L’Oreal remaining at that top level. “Some higher-profile sponsors have pulled back, scaled back funding, or reallocated it,” Kilbride said, describing the downturn as “a new reality” for NYC Pride.

Kilbride noted that about 75% of sponsors did return and the total number of sponsors is actually slightly up, thanks to smaller partners joining in. But the loss of big-name contributors has slashed total revenue by roughly 25%, creating a serious deficit. Organizers have had to scale back or “strip down” certain events that were staples in past years. While the core happenings - the Pride March, PrideFest street fair, and Youth Pride – will go on as planned, some auxiliary parties and sponsored events have been cut due to budget constraints. NYC Pride is also turning to the community to help fill the gap, launching a fundraising campaign to solicit individual donations.

Most departing sponsors gave economic reasons for their retreat, often “taking a closer look” at DEI-related spending amid broader belt-tightening. But Kilbride acknowledged a political undercurrent as well: sponsors privately expressed concern about attracting the wrath of the Trump administration for publicly supporting Pride and diversity initiatives. Trump’s return to presidential power has come with an onslaught of anti-DEI moves - from ordering federal agencies to investigate “woke” companies to rolling back LGBTQ+ protections. That environment has put corporate Pride sponsors in the crosshairs. One LGBTQ+ corporate advocacy leader went further, arguing it’s “difficult to believe this is about the economic context” alone – many firms simply “don’t want to find [themselves] being a target” over LGBTQ support.

Despite the downturn, NYC Pride’s team is hopeful this loss of sponsors is temporary, not permanent. “We want to bring them back to the table,” Kilbride said of the estranged corporate partners. In the meantime, New York will carry on with a leaner celebration. Notably, community-driven alternatives like the annual Queer Liberation March (which bars all corporate sponsors by design) will also take place, underscoring a push for more grassroots Pride traditions alongside the brand-sponsored model.

San Francisco Pride: Longtime Backers Bail Amid “Backtracking” on LGBTQ Rights

On the West Coast, San Francisco Pride - one of the world’s largest Pride events – is likewise reeling from the loss of several major sponsors. Suzanne Ford, SF Pride’s executive director, revealed that multiple companies which had been partners for decades have pulled out for 2025, withdrawing roughly $200,000–$300,000 in funding. This exodus includes heavy hitters like Comcast, Anheuser-Busch (Budweiser’s parent), and Diageo (spirits maker of Smirnoff vodka), all of whom informed SF Pride they “did not have the budget” to participate this year. Ford expressed that the organization was “deeply saddened by the loss of these long-term partners”, noting “it’s not just a number or transaction - we have relationships with all those people” built over many Pride seasons.

SF Pride leaders strongly suspect the hostile national climate has factored into these decisions, even if companies don’t say so outright. “The backtracking on rights for the LGBTQ community certainly has to be part of any corporation’s calculus on whether they give us money,” Ford told the press, noting that in 2025 “it’s more difficult than ever to stand up and say you support the rights of LGBTQ people”. In other words, as state and federal actors roll back LGBTQ protections, corporate allies may fear the optics of high-profile Pride sponsorship. Since taking office in January, President Trump has attacked LGBTQ+ people and diversity efforts with a “barrage of executive orders,” including moves to legally define gender as only male/female, ban transgender service members, and dismantle federal DEI programs. This political onslaught creates a chilling effect: “people are making [sponsorship] decisions from a marketing point of view” to avoid controversy, Ford said – a “very short-term view” that she considers “dangerous for companies to take” in the long run.

San Francisco Pride is forging ahead despite the budget blow. The free parade and festival, which typically draws over a million attendees, costs about $2.3 million to produce. With over $300,000 in expected sponsor funds now gone, the organization has only about $1 million of its $2.3 million fundraising goal secured so far. Organizers are hustling to plug the gap through new sponsors and grassroots support. Ford reported an uptick in inquiries from potential new partners and a surge of small donations from individuals after news broke of the sponsor pull-out. “We’re going to find the money if we have to knock on every door in San Francisco,” Ford vowed, emphasizing that the show will go on one way or another. There’s also an increased focus on safety: with rising anti-LGBTQ+ threats, SF Pride is diverting funds to beef up security for participants and spectators.

Interestingly, a few companies are still stepping up. Benefit Cosmetics, initially rumored to have dropped out, publicly reaffirmed that it “will proudly be participating in the SF Pride Parade” and was quickly reinstated as a sponsor. And some former sponsors maintain they’re not abandoning LGBTQ causes entirely. (For instance, Diageo said it’s still sponsoring a smaller Pride in Long Beach, and Comcast noted it’s supporting other regional Pride events, just not the SF main parade. Nonetheless, the symbolism of big brands quietly retreating from San Francisco’s marquee Pride has rattled the community. Ford believes it reflects a broader “rights backtracking” in America that is forcing companies into the shadows. Still, echoing the city’s resilient spirit, she stresses that Pride’s platform will endure: “No matter who’s president, no matter what’s going on in this country, this has to exist… I think it’s an enormous responsibility to make sure [Pride] is here for its 60th, its 75th [anniversary]”.

LA Pride Bucks the Trend with Loyal Sponsors

In contrast to New York and San Francisco, Los Angeles Pride (LA Pride) is emerging in 2025 as a notable exception to the sponsorship slump. LA Pride organizers report that they have retained most of their corporate sponsors for this year’s parade and festival, “bucking a national trend” that has affected other major cities. The June event in Hollywood boasts a sponsor roster that still includes household names – Delta Air Lines, Coca-Cola, Honda, Sony Pictures, Mac Cosmetics, L’Oréal, the NFL, and more. When one major contract expired (Toyota ended a three-year deal), another brand stepped in immediately to fill the spot. As a result, LA Pride’s budget and number of backers are about the same as in previous years, and the 2025 festivities are moving forward at full scale. (Last year’s LA Pride drew over 130,000 attendees, and similar crowds are expected again.)

LA Pride leaders credit their 55-year legacy and relationship-building for this stability. “We refer to ourselves as the elder Pride,” said board vice-president Kareem Cervantes, noting that decades of community presence have given LA Pride robust infrastructure and trust with sponsors. The organization also works on long-term partnerships, often signing multi-year sponsorship deals and leveraging an agency to maintain corporate engagement. This approach seems to have insulated LA – at least for now – from the steep sponsor fallout seen elsewhere. “No one has come to us this year and said they’re not renewing because of the current political environment or the rollbacks in DEI,” Cervantes reported. In fact, interest from brands has been strong enough that LA Pride may even add more sponsors beyond the usual deadline.

That’s not to say Los Angeles exists in a bubble. Organizers are well aware of the “DEI backlash” nationally, and a few partners have shifted. (For example, Target and H&M – both embroiled in recent culture-war flareups over LGBTQ+ inclusion – are still participating in Pride events in LA and NYC, though Target’s sponsorship was declined by one Pride due to its own retreat on DEI commitments.) But LA Pride’s experience proves that with authentic, long-term allyship, corporate partners can hold steady even amid controversy. It stands as a hopeful counterpoint: major brands can continue to celebrate Pride publicly when the commitment runs deeper than a one-off marketing trend.

Ripple Effects on Pride Organizations and the LGBTQ+ Community

The pullback of corporate dollars is forcing Pride organizers to re-evaluate both finances and values. Many groups depended on sponsorships for a large share of their budget – as much as 75% in the case of Twin Cities Pride in Minnesota. The sudden shortfalls are prompting painful decisions. Seattle Pride, for instance, expects only about $400,000 in sponsorship this year against a $1.5 million budget, leaving a $350,000 gap. Twin Cities Pride lost several sponsors and had to eliminate an entertainment stage and cut back year-round programming to stay afloat. Even returning sponsors are often giving less: Denver Pride reported that its repeat sponsors reduced contributions by an average of 62% compared to previous years. And in some cities, companies delayed committing until the last minute, creating uncertainty. “Several sponsors asked if they could discuss sponsorships closer to April rather than [starting in] January,” said St. Pete Pride’s president in Florida, noting that by late March they had only achieved about 55% of their funding goal (versus the usual ~85% by that time).

Faced with these challenges, Pride organizations are pivoting to alternative support systems. Grassroots fundraising has taken on greater importance – from New York’s new donation drive to community benefits in San Francisco. Ford noted that “since [SF Pride] first announced that corporations were stepping back, individual donations have gone up” as community members rally to keep Pride alive. Pride committees are also seeking more grants, exploring city or municipal assistance, and collaborating with local small businesses (which, several organizers observed, have been steadfast allies even as some Fortune 500 firms waver). In Seattle, organizers proactively chose not to solicit one past sponsor – Boeing – after sensing the company no longer aligned with their values following its dismantling of its internal DEI team. Similarly, Cincinnati Pride declined sponsorships from some former corporate partners this year, scrutinizing companies’ nondiscrimination policies and actual support for the LGBTQ+ community before accepting funds. “With everything happening politically...we thought, what better time to really reset our expectations and align with our community on what they want to see?” explained Jake Hitch of Cincinnati Pride. This reflects a broader recalibration: Pride isn’t just grateful for any cash infusion; organizers want sponsors whose actions match their rainbow branding.

Crucially, the scaling back of corporate presence has spurred reflections on Pride’s roots as a protest and liberation movement. “Pride was founded by riots and rallies and bricks and blood,” reminded Jes Distad of San Francisco’s Harvey Milk LGBTQ Democratic Club. Many in the community have long been critical of the commodification or “rainbow capitalism” of Pride. Now that some big sponsors are hesitating, activists see an opportunity to “put the protest back in Pride.” “We have fought too long and too hard to be lamenting that a couple of companies with billionaire interests don’t want to pay for our party,” Distad argued, suggesting Pride will survive regardless of corporate logos. In St. Louis, Pride board member Jordan Braxton noted that in the 1980s, Pride was a small, defiantly grassroots gathering – and as Pride returns to a more grassroots footing in 2025, simply coming together is itself an act of resistance. “We’re putting the protest back in Pride,” Braxton said of this year’s approach. There is a silver lining: a Pride less dominated by corporate branding could allow more authentic LGBTQ+ voices and community groups to take center stage.

At the same time, Pride directors do worry about what lost funding means for the community. Sponsorship dollars don’t just pay for floats and glitter; they often underwrite critical aspects like security, accessibility, and free admission that ensure Pride events are safe and open to all. Those funds also support the year-round services and programming many Pride organizations provide – educational workshops, LGBTQ youth support, outreach programs – which may now need to be scaled back. “The sad thing is corporations have long been the first to step into our corner… The fact that some are questioning their commitment now during this uncertain time is very disheartening, hurtful and frustrating for many,” reflected Ryan Bos, head of the Capital Pride Alliance in D.C. Pride organizers are left questioning whether those past partnerships were as solid as they seemed – and how to plan for an uncertain future where funding can evaporate with the political winds.

Beyond Performative Marketing: A Call for Year-Round Authentic Allyship

This 2025 Pride sponsorship saga highlights a critical lesson: true allyship can’t be seasonal or superficial. When support for the LGBTQ+ community is treated as a marketing trend – something to flaunt when it’s easy and hide when it’s inconvenient – it fails both the community and the brands themselves. Advocacy leaders are urging companies to move away from performative gestures (the token Pride Month ad campaigns or one-off parade floats) and instead commit to meaningful, year-round inclusion. That means not only sponsoring Pride in good times, but standing firm even when anti-LGBTQ+ forces push back. As one corporate diversity advocate observed, many companies now privately admit, “I won’t engage on anything LGBT-related because I don’t want to find myself being a target.” But yielding to such pressure abandons the very values of diversity and equality that these companies claimed to champion. Brands that genuinely believe in inclusion are being challenged to demonstrate it when it counts – not just when it’s profitable or popular.

Encouragingly, some companies are maintaining support despite the headwinds. Pride organizers singled out Delta Air Lines as a consistently strong supporter across multiple cities. And as noted, certain sponsors have quietly continued contributing at the same level but without seeking publicity, indicating they still want to help but fear controversy. This suggests there are still corporate allies who understand the importance of backing words with action. Moving forward, advocates say, companies should embed LGBTQ+ inclusion into their core business practices – from internal policies to marketing and community engagement – rather than treating it as a PR opportunity. For example, adopting robust nondiscrimination policies, funding LGBTQ+ initiatives year-round, featuring queer voices in advertising, and engaging with LGBTQ-owned businesses are ways to show real allyship. Such actions build trust that goes far deeper than a rainbow logo in June.

The public is paying attention. Studies have found that consumers (especially younger ones) reward brands for authentic inclusion and can detect when it’s merely window-dressing. In fact, about 80% of LGBTQ+ adults say they favor brands that celebrate Pride – but they also expect those brands to stand by the community consistently, not only when it’s convenient. In an era when diversity and inclusion are under attack, brands that remain visibly supportive send a powerful message. They help normalize LGBTQ+ acceptance and counteract the stigma being promoted in some political spheres. Conversely, brands that retreat may find not only a dent in Pride attendance, but a dent in their reputation with the very audiences they professed to support.

Ultimately, the 2025 Pride sponsorship pullback is a wake-up call. It has laid bare which corporate partnerships were shallow and which were solid. It has also galvanized Pride organizers and LGBTQ+ activists to reclaim the narrative and demand more from their allies. As Pride season approaches, 989 Creative Group and other advocates will be shining a spotlight on the difference between allyship as a marketing ploy and allyship as a company value. The hope is to encourage more brands to do the latter: to invest in authentic allyship that doesn’t evaporate under pressure, and to amplify LGBTQ+ voices not just during Pride Month, but all year long. Pride began as a protest for visibility and equality – and those who choose to stand on the right side of history now will be remembered for it. In the words of Suzanne Ford of SF Pride, companies must avoid the short-term view and ask themselves if they want to be fair-weather supporters or true partners in the ongoing fight for LGBTQ+ equality. The LGBTQ+ community is watching, and it values allies who show up when it matters most.