2025 Racial Justice Audit Analysis
The Funders for Race Equality Alliance (FREA) launched the Racial Justice Audit in 2019 to provide funders with a way to systematically review their racial justice grantmaking.
Over the years, the Audit has developed into a vital tool that enables funders to reflect on and monitor their own grant making practices and processes, and that supports funders to start, deepen or expand efforts to advance racial justice.
This is a summary of the sixth cohort analysed including 1,857 grants covering £156.7m in funding from 23 funders – the largest cohort yet (please see list below). This analysis provides insights into racial justice funding and funder practice from this cohort, with an aim to support action to increase sustainable racial justice funding.
Executive Summary
Background and context
The past year has been challenging for those working to advance racial justice. April 2024 to 2025 was a period of intense anti-migrant rhetoric and the rise of far-right political activity, both in electoral politics with the success of the Reform party in the national and local elections, and in far right mobilisation and racist violence, seen in the racist riots in August 2024. There have also been global crises, including the Sudanese civil war and genocide, and conflict and mass displacement in the Congo, and the ongoing war in Ukraine. Israel’s genocidal actions in Gaza became increasingly stark, whilst solidarity with Palestinians was suppressed on multiple fronts in the UK, through misrepresentation in the press, criminalisation of protest, and through public and private sector employers disciplining of staff. The rise of authoritarianism in the US and hostility to Diversity, Equity and Inclusion efforts, have had a chilling effect in the UK as well, with private sector employers rolling back their commitments, the impact on other sectors yet to be seen.
Supporting grant-makers to commit to working for racial justice, and to hold themselves accountable through data and reflection, is urgent and vital to support an embattled race equality sector, and is at the core of FREA’s mission.
Key facts and findings:
Grants designed to benefit communities experiencing racial inequity are on average longer and larger than grants that are not designed to benefit communities experiencing racial inequity.
Grants for racial justice receive proportionally fewer capital grants than others - that's investment in buildings, land or equipment.
Grants to race equality organisations tend to receive longer grants, but receive similar amounts of funding per year in comparison to non-race equality organisations.
Different ‘by and for’ race equality organisations show distinct grant patterns:
Asian-led ‘by and for’ organisations receive shorter grants on average (18 months), but receive a similar award amount per year (£41.5k).
Black-led ‘by and for’ organisations receive slightly shorter grants (21 months) and a slightly lower award amount per year (£39.3k).
Other ‘by and for’ organisations supporting communities experiencing racial inequity have longer grants (25 months) and similar annual funding (£41.2k).
Migrant focused organisations received 12% of overall grants and made up 33% of race equality organisations. These grants were longer and had a higher overall award amount on average.
The proportion of grants to race equality organisations has fallen compared to the 2024 Racial Justice Audit.
61% of grants designed to benefit communities experiencing racial inequity focus on addressing the consequences of racism, while 37% target root causes. In general grants designed to benefit communities experiencing racism in this cohort had a higher proportion of campaigning grant activities, and less service provision than the other grants audited.
What do the findings mean?
These findings are from a self-selecting cohort of funders, those that have been motivated to audit and share their data with FREA. It’s not a representative picture of funding in the UK, but provides a vital tool for benchmarking progress and guiding future action. While the data shows encouraging trends in participation and commitment, it also highlights areas where funders must be vigilant and proactive to ensure racial justice funding is equitable, strategic, and transformative. Ongoing reflection, collaboration, and adaptation will be essential as the sector responds to evolving challenges and opportunities.
Based on this analysis, and engagement with race equality sector we make the following recommendations to funders:
Recommendations for funders
Monitor your support for race equality organisations, and maintain commitments to prioritise work led by those most affected.
Explore capital funding for racial justice. Due to the deep and systemic nature of racism, community organisations often lack the assets needed to serve their communities and provide stable physical spaces for action. This includes ownership of land, community centres and assets, which can shift power in meaningful ways.
Foster collaboration, rather than competition within the race equality sector. Strengthen sector infrastructure and leadership development, investing in networks and spaces, and adopting grant making practices that foster collaboration and create shared learning.
Expand unrestricted and core funding wherever possible. Flexible funding enables race equality organisations to respond to emerging needs and build long-term resilience, and systemic change.
Support the interconnection and collaboration between migrant justice and racial justice, in the context of anti-migrant rhetoric fuelling racist violence across the UK
Support FREA to provide connection and insight into grantmaking in the racial justice sector. Support other to funders to regularly collect, analyse and critically use their data as a vital accountability tool by investing in and financially resourcing the Racial Justice Audit.
The 23 funders who completed the 2025 Racial Justice Audit:
Alan and Babette Sainsbury’s Charitable Trust
Barnwood Trust
Barrow Cadbury Trust
Bedfordshire and Luton Community Foundation
Blagrave Trust
Children in Need
City Bridge Foundation
Clothworkers’ Foundation
Cloudesley
Co-op Foundation
Esmée Fairbairn Foundation
Heritage Lottery Fund
Impact on Urban Health
Joseph Rowntree Charitable Trust
Joseph Rowntree Foundation
Justice Together Initiative
LEF
Lloyds Bank Foundation for England and Wales
Paul Hamlyn Foundation
People’s Health Trust
Sussex Community Foundation
Trust for London
Youth Futures Foundation
A big thank you to …
Thank you to the race equality organisations and funding organisations who have contributed to Racial Justice Audit. Our specific thanks go to Barrow Cadbury Trust, Civic Power Fund and TRIUMPH for funding the 2025 Audit.
The Racial Justice Audit remains a vital tool for benchmarking progress and guiding future action. While the data shows encouraging trends in participation and commitment, it also highlights areas where funders must be vigilant and proactive to ensure racial justice funding is equitable, strategic, and transformative. Ongoing reflection, collaboration, and adaptation will be essential as the sector responds to evolving challenges and opportunities.
