I defend impact-based accounts of institutional racism against the criticism that they are over-inclusive. If having a negative impact on non-whites suffices to make an institution racist, too many institutions (including institutions whose affirmative action policies inadvertently harm its intended beneficiaries) would count as racist. To address this challenge, I consider a further necessary condition for these institutions to count as racist—they must stand in a particular relation to racist ideology. I argue that, on the impact-based model, institutions are racist (...) if they have a negative racial impact AND this impact is legitimized by racist ideology. Racist ideologies limit social criticism of and collective action against institutions that have a negative racial impact, and in so doing, lend stability to systems of racial domination. (shrink)