Philadelphia Asian American Film Festival faces deficit after diversity funding cuts

The Philadelphia Asian American Film Festival, the city’s only dedicated Asian American film organization, is confronting a critical financial gap after federal diversity-focused arts funding was reduced.

Leaders say the loss of anticipated grants and one major corporate sponsor created a six-figure deficit heading into 2026, leaving the nonprofit with less than six months of operating reserves. The organization is seeking to raise $150,000 by March 1 to avoid cuts to screenings, filmmaker workshops and community partnerships already planned.

Federal grant reductions: Federal arts support was disrupted last year after the Trump administration imposed budget cuts, particularly in programs tied to diversity initiatives. The Philadelphia Asian American Film Foundation had built part of its annual operating budget around smaller federal grants connected to those programs.

Executive director Nani Shin said the reductions narrowed access to multiple funding opportunities the organization had expected to pursue: “What we didn’t expect was these major cuts on the federal level trickle down and affect the smaller grants that we were going after.”

Corporate sponsorship loss: One of the festival’s major corporate sponsors also withdrew support last fall ahead of the November event. The sponsorship had been incorporated into the foundation’s revenue projections and helped cover operational costs tied to the annual festival. Its withdrawal removed a separate private funding stream and widened the budget gap entering the current fiscal year.

Fundraising and public outreach: The foundation launched its first public fundraising campaign during the November festival and has raised about 10% of its $150,000 target. Shin described the effort as “absolutely critical,” citing limited cash reserves and ongoing financial commitments. “What we weren’t prepared for was the timeline, the urgency of it,” she said. “We were already out doing the work that we have committed to do, so we definitely had to pivot and scale it down.”

The foundation held public town hall-style meetings on Feb. 9 and Feb. 11 and said it plans to continue engaging community partners as it works to stabilize operations.