After Target made the decision to drop diversity, equity, and inclusion initiatives, Minnesota’s largest Pride festival decided to drop them as a sponsor. Now, Twin Cities Pride has more funding than they started with.

Target issued a memo on Friday announcing the end of its three-year DEI goals, including its Racial Equity Action and Change (REACH) program and “all external diversity-focused survey’s including HRC’s Corporate Equality index.” The Human Rights Campaign effort, which provides benchmarks on corporate policies relevant to LGBTQ+ employees, previously gave Target a score of 100 percent, dubbing the company a “Leader in LGBTQ+ Workplace Inclusion.”

In response, the largest Pride organization in Minnesota and the largest free Pride celebration in the United States, Twin Cities Pride, announced this week that it would be dropping Target as a sponsor for its 2025 events. The company had initially pledged $50,000, and had been involved in Pride celebrations for around two decades. 

TCP executive director Andi Otto tells The Advocate that Target executives called him before their announcement, as they “wanted me to hear it from them before it had hit mainstream media.” The company insisted that “they were still very much committed to being at Pride and very much committed to sponsoring and continuing to support our year-round programming.” 

Target was not backing down on its $50,000 pledge, but Otto says that TCP and their allies still saw the move as a betrayal, as the company is “taking away safety for the community not only in their employees, but in their suppliers.” As the community was “looking to us to hold them accountable,” TCP’s board made the decision to remove Target as a sponsor.

“This isn’t about the money,” Otto says. “Because if the money wasn’t there, would we even be questioning this decision? The answer is no. The reality of it is, is that it’s the right thing to do for our community.”

The end of DEI programs and LGBTQ+ inclusivity initiatives marks a significant shift for the Minnesota-based company, which once withstood protests from hate groups over its inclusive bathroom policies and Pride displays. However, the change was not sudden, as Target pulled some of its Pride Month merchandisein 2023 amid threats and violent protests in stores.

Target is among over a dozen major companies that have ended their DEI initiatives in the past year. Meta announced the end of its DEI programs by citing the shifting “legal and policy landscape surrounding diversity, equity and inclusion efforts in the United States.” McDonald’s also cited the Supreme Court decision against affirmative action, as well as changes among “other companies.”

Target executives said in their public statement and in private statements to Otto that the decision to end DEI programs was “due to changes in the landscape” — a nod to the Trump Administration, which has taken a hard stance against DEI in its first weeks by signing executive orders firing government employees and rescinding 1960s civil rights protections. 

As Target had long stood by DEI and LGBTQ+ initiatives when it was politically beneficial, Otto says that the company’s reason for ending them “just didn’t sit right with us.”

“A lot of companies that are overturning [DEI] are doing it out of fear,” Otto says. “They look ahead and say, ‘This is what the next four years is going to be like.’ If we’re standing up for the diversity and inclusion, then we’re going to be, ironically, in the minority.”

“It’s crazy when you truly think about it — standing up for a minority group of folks, but when the other shoe drops, you don’t actually want to be part of that group,” he adds.

Companies’ willingness to abandon the LGBTQ+ community contributes to the long-standing debate among activists over “Rainbow Capitalism,” which refers to the trend of companies marketing to or profiting off the queer community without meaningfully supporting them. Examples include Disney using a rainbow logo while cancelling or censoring LGBTQ+ projects, Netflix claiming to support LGBTQ+ people while hosting Dave Chapelle’s harmful jokes about transgenderpeople, or Target scaling back Pride displays after pressure from extremists despite decades of precedent. 

“I get a lot of push back about why we have sponsors at Pride. Pride was a protest, et cetera. But those sponsors allow me to do things,” Otto says, adding, “I get to pay every performer on the stage. I get to have a rainbow wardrobe, free personal care items, free clothing. We fed 300 people a holiday meal for free. … It allows us to have smaller costs for small businesses and LGBTQ and BIPOC businesses at our festival.”

While Otto did not believe it would be too challenging to find a replacement for Target, he “did not expect to be paid forward by the community.” TCP made the money back in less than 24 hours, raising nearly $78,000 just from individual donors as of Wednesday morning. Other organizations offering grants or sponsorships have brought that total to well over $100,000 — more than twice what Target promised. 

“Everybody’s talking about eggs at this point. I know people are watching their money very closely, and I don’t blame them. Me as an individual, I’m doing the same thing,” Otto says. “So, I didn’t expect this outcome. It’s inspiring.”

Otto, who has heard from many community members that have decided to no longer shop at companies ditching DEI, emphasizes that “I’m not asking you to boycott Target — I’m asking you to make the best decision for your family.” Still, he hopes “companies see this and realize that this is going to cause people to really start selecting where they’re gonna shop.”

“I won’t close the door on Target. I want them to show their true colors, whatever that looks like in their world,” Otto says. “And my hope is that in 2026, they can come back. They can be loud, they can be proud of what they’ve done with their company, and we can move forward. But I need to see that beforehand.”