A 2024 court case contending that a nonprofit fund benefiting Black female entrepreneurs is discriminatory, the Eleventh Circuit sided with the plaintiff. [American Alliance for Equal Rights v. Fearless Fund, 2024 WL 2812981 (11th Cir. 6/3/24)]

 The decision stops the fund from further grant-making pending conclusion of the litigation. The decision poses risks for nonprofits with race-based charitable purposes as the plaintiff is a frequent litigant.

Fearless Foundation operates a charitable grant program providing $20,000 grants to businesses that are majority owned by Black female entrepreneurs.

American Alliance for Equal Rights (AAER) contends that the grant program violates Federal law because it racially discriminates against non-Black female entrepreneurs, including AAER members.

 AAER has brought similar lawsuits against diversity programs offered by businesses (including multiple law firms). That is one reason DEI (Diversity, Equity, Inclusion) programs are no longer in favor by big corporations.