Foley & Lardner LLP partner Von Bryant offered insight on a recent federal appeals court ruling against the Fearless Fund, a venture capital fund investing in businesses led by women of color, in the FundFire article, “Fearless Fund Ruling Puts Race-Conscious Programs at Risk: Lawyers.”
In the wake of the ruling, organizations with race-conscious investment or philanthropic programs will need to be “more thoughtful and strategic” to minimize potential legal risks, explained Bryant, adding that this does not mean these programs should end.
“I think you’ll see organizations, particularly bigger companies, start to step back from using race-based criteria, and maybe look to things like census tracts and socioeconomic status and other criteria to get at the same goal,” he said.
Bryant noted that the court’s ruling also raises the question, “is charitable giving by non-profits still protected free speech?” He added that if this is no longer the case, “then there’s a potential parade of horribles that will impact a broad spectrum of philanthropy, foundations, and the like.”
