Mark Zuckerberg's philanthropic organization reduces, discreetly.
Revamped Dispatch:
In the heart of 2024, Priscilla Chan graced a stage, celebrating the fifth anniversary of a noteworthy housing project that her and Mark Zuckerberg's philanthropy ignited with a whopping $50 million commitment. She laid out their goal: "Our mission is simple - to boost housing affordability, promote racial equality, and champion economic inclusion, particularly for those hardest hit."
Fast-forward a year, and the Chan Zuckerberg Initiative (CZI) has pulled an about-face on its housing commitment. Sources explain that gradually, they're cutting off funding for various California housing organizations, breaking the spirit of many long-standing partnerships that were nurtured over the years.
Edie Irons, spokesperson for All Home, a nonprofit working on homelessness solutions, summed it up concisely: "This is a body blow to the housing justice movement in California. It impacts numerous, if not all, the most effective housing advocacy groups across the state."
Chan and Zuckerberg, now the CEO of Meta, have funneled part of their staggering $198 billion fortune into CZI, which, as of 2023, boasts assets valued at $6.3 billion. Since 2018, this foundation has pumped nearly $200 million into projects geared towards constructing housing or offering solutions to California's affordability crisis. They've also dropped a cool chunk of change on housing-related ballot measures, such as a 2018 statewide bond measure for affordable housing, and a sales tax hike to support homelessness services in Alameda County, California.
CZI chose to remain tight-lipped for this piece, but issued a statement saying: "Over the past decade, CZI has backed transformative housing solutions in California, contributing to the creation of more than 40,000 homes and offering stability to millions of renters through funding, technical assistance, and community-driven policy changes. As we zero in on biomedical research, we will scale back our statewide housing initiative by the end of 2026. Future housing efforts will focus locally, with continued investments in the Bay Area."
Insider sources close to CZI's decision-making revealed that the pullback also covers funding for programs promoting diversity, equity, and inclusion (DEI), often known as DEI programs. Many of the housing organizations CZI has supported in the past feature social equity in their mission statements.
Leaders of affected organizations can't help but feel betrayed. These groups have traditionally advocated for progressive causes, only for CZI to seemingly retreat from its social justice commitment amidst the Trump administration's attack on diversity initiatives. President Trump, in a series of executive orders, targeted spending on diversity programs, affecting federal contractors and grant recipients alike.
A staff member from one housing organization echoed the sentiments, expressing disappointment: "Cancelling this funding sends a grim signal that this work isn't crucial."
One grantee was initially given a glimmer of hope, as they weren't as DEI-focused as some other organizations. However, after a review of their website by CZI attorneys, they discovered references to DEI and learned that future funding would be withheld.
Recent months have seen a rash of layoffs within CZI's community team, with around half the housing team becoming unemployed.
Grantees fear that CZI's withdrawal from the housing space could set a dangerous precedent, causing other corporate foundations to follow suit. Some are even considering eliminating mentions of DEI within their work to appease donors.
"We won't stop our work on DEI, but we might not push it into the spotlight as much," admitted the leader of a housing organization, choosing to remain anonymous for fear of potential funding cuts. "We don't want to come off as cowardly, but we're balancing the needs of our staff who rely on their jobs."
Local nonprofits are particularly vulnerable to CZI's exit, as the foundation has a history of supporting these groups' general operating budgets rather than project-specific ones.
The East Bay Housing Organizations, a program based in Oakland, California, fighting for affordable housing, considered CZI its second-largest donor. The group's executive director, Lindsay Haddix, recently received confirmation that CZI would honor its current funding through February 2026, but further financial support would not be forthcoming.
"CZI's support has been absolutely vital to our work," Haddix shared. "I'm working tirelessly with our board and our members to find a solution and prevent our operations from being impacted."
The pro-housing group YIMBY Action praised CZI for its role in holding cities to their housing elements, plans that the state mandates local governments create to guide new housing growth.
"The Housing Element is a golden opportunity to build the housing California needs, in the locations most in need. We were overjoyed that CZI saw the immense potential of the Housing Element and joined us as a partner," said Gillian Pressman, YIMBY's managing director. "We're saddened that they decided not to extend their support."
Some of the most celebrated programs on the chopping block was CZI's "Housing Narrative Partner Program," a collaboration between tenant advocates, market-rate housing advocates, and homelessness-focused organizations to unify support for improving housing affordability.
"There aren't many funders out there supporting narrative work - it's incredibly critical," Irons of All Home affirmed. "They had a talented team."
Initial reports suggest that some research-focused organizations have escaped the cull, according to a spokesperson from the Terner Center for Housing Innovation.
Beyond housing programs, CZI has also reportedly decided to shutter some education projects. Last week, they revealed their intent to shutter the East Palo Alto, California, school they founded in 2016 to provide a free private-school education to low-income children.
While CZI steps away from its social impact initiatives, other charities are stepping up to bridge the funding gap for social justice causes. Last week, the San Francisco Foundation, which manages the Partnership for the Bay Future initiative, pledged an additional $15 million from its endowment to support organizations in California's Bay Area.
"The decision of any funder in California, especially a major one, to suddenly pull its support for housing advocacy at a time of unprecedented federal funding cuts is heartbreaking," wrote Chief Impact Officer Judith Bell in a statement. "The San Francisco Foundation, along with many of our peer funders, is standing steadfastly behind our commitment to inclusivity, social justice, and racial equity."
- In her fifth anniversary speech, Priscilla Chan, partner of Mark Zuckerberg, emphasized the Chan Zuckerberg Initiative's (CZI) focus on boosting housing affordability, promoting racial equality, and championing economic inclusion.
- Despite initial housing commitments, CZI is gradually cutting off funding for various California housing organizations, disrupting long-standing partnerships and affecting housing justice organizations across the state.
- CZI has redirected some of its funding towards CZI's projects in biomedical research, education, and self-development, including social media, entertainment, and technology.
- The shift in funding has also impacted programs promoting diversity, equity, and inclusion (DEI), which many of the affected housing organizations prioritize in their mission statements.
- Local nonprofits, such as the East Bay Housing Organizations in Oakland, California, are particularly vulnerable to CZI's exit, as they rely on CZI's general operating budget support.
- In the absence of CZI's housing funding, other foundations, like the San Francisco Foundation, have pledged additional resources to support organizations working on social justice causes in California.
- Apart from housing programs, CZI has also reportedly decided to shutter some education projects, including the East Palo Alto, California, school founded by CZI in 2016.
- Community leaders, housing organization directors, and advocacy groups are voicing concerns over CZI's pullback from social impact initiatives, fearing the potential ripple effect on other corporate foundations and their commitment to DEI and social justice.
