Mardi Gras organisers are being urged think creatively about fundraising efforts to safeguard the festival into the future, as many express their disappointment at a key event's cancellation.
Weeks before the start of the annual Sydney Gay and Lesbian Mardi Gras, chief executive Jesse Matheson announced the organisation's "heartbreaking" decision to cancel the party that typically takes place following the iconic parade through the city.
Two years of significant financial loss meant the organisation had to cancel the event, which Mr Matheson said had run at a deficit every year since 2020.
"Over the years, the context for Mardi Gras party, and indeed the festival community, has changed dramatically," he said in a statement.
"It is now far more expensive to deliver, and increasingly difficult to guarantee, the kind of high-quality, shared community experience people expect."
However, the cancellation of the 2026 Mardi Gras After Party was more than a budget issue, Macquarie University associate professor and queer historian Leigh Boucher told AAP - it marked a turning point in Sydney's queer cultural history.
"I understand why this decision has been made but that party has been going for four and a half decades and is rich with historical resonance," he said.
"It seems that the choice to cancel is a real rupture."
While he recognised the difficulty faced by Mardi Gras organisers, Mr Boucher said a lack of communication had left many in the community frustrated and disappointed.
"This is not an issue that was made in the last three months," he said.
"Everybody could see it was coming for at least four years.
"I have deep sympathy for this organisation that does tremendous work, but it is a failure and any sober assessment of what has happened cannot see this as anything but a failure of planning and management."
The decision to cancel the party reflects a wider funding issue impacting many LGBTQI organisations.
The LGBTQI community sector is chronically underfunded, only receiving five cents out of every $100 donated in Australia, according to Rainbow Giving Australia.
Almost half of the LGBTQI organisations in the sector operate on less than $10,000 a year.
While private philanthropy, corporate sponsorships and government funding all have a role to play, Rainbow Giving chief executive Em Scott said the power of mobilising community donors should not be underestimated.
"The Mardi Gras funding issues are reflective of the broader landscape within the LGBTQI sector and the challenges the community faces in receiving long-term funding," she said.
"This is an example of where community needs to step up for community."
Funding to LGBTQI organisations is typically below one per cent of total giving, despite the community representing approximately 10 per cent of the population.
"It's a global issue but it seems to be more pronounced in Australia ... we need to recognise the important moment we are in," Ms Scott said.
"We are at a critical juncture point where we can keep the hard-fought rights that we have and forge a path where Australia is inclusive for everyone, social cohesion is strong and we don't go down the path we are seeing in the United States."
The upcoming Mardi Gras parade on February 28 presented a practical call to action for people watching at home or attending in person, Ms Scott said.
"Those floats represent a lot of the incredible community organisations that are the backbone of supporting inclusion, better health outcomes and access to support services," she said.
"If you see a float for an organisation that interests you, take it as an opportunity to donate."
