Giving Compass' Take:
- Phil Buchanan, Molly Heidemann, and Kevin Bolduc have compiled a list of which foundations are publicly taking action when nonprofits are losing funding.
- What other actions have you seen individuals or foundations taking to support the nonprofits they care about?
- Learn more about best practices in giving.
- Search Guide to Good for nonprofits in your area.
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It’s clear that nonprofits are looking for more support from their foundation funders, in both words and deeds, as they grapple with a Trump administration that seems hell-bent on going after nonprofits — and civil society more broadly. We have documented some of those efforts in other recent posts on this blog since Inauguration Day.
But you don’t have to take our word for it. A survey of nonprofits we conducted in February generated a 66 percent response rate (far above the typical rate for our research surveys of this type), a telling indicator in itself. The 585 respondents — representative of nonprofits that receive at least some foundation funding — didn’t mince words.
“Our communities are under attack and, frankly, it doesn’t feel like philanthropy is that alarmed,” said one respondent. Nonprofits here in the US and around the world are reeling from the threats of this political context, including efforts to cut federal funding, and they are seeking more communication and support.
Some funders have responded boldly and quickly. Others we’ve seen as too reticent, perhaps worried about taking risks that might jeopardize their institutions or operating under a set of assumptions that may have made sense in November but now seem worth reconsidering — and quickly.
Maybe that’s beginning to happen.
We have reviewed public communications from foundations through the week ending March 21, as well as media reports and listservs, and we’re seeing a growing number of funders taking steps to confront the challenging realities. Our search is definitely not exhaustive — we’re sure there are examples we’ve missed, and we welcome you to reach out to let us know.
Still, it is instructive to see the public actions and statements from foundations and philanthropic leaders. We know that each of these decisions was undoubtedly the result of careful internal deliberations. In the hope it may offer inspiration or instruction to others, we offer these examples of what we found in our research as a resource to funders considering their own responses.
But first, a note on “naming names”: We all feel we’re in a moment in which institutions are maliciously targeted, seemingly at random, by powerful government actors. We don’t intend to create any sort of “targets” list. Therefore, the names you’ll see below have all made public statements about their actions. There are also, we know, many cases where actions have been communicated privately without a public declaration on social media or websites.
Stepping Up Payout Levels
A handful of foundations have now announced increases in their grant payout levels.
- The Northwest Area Foundation will double funding in 2025.
- Freedom Together will increase its grantmaking to 10 percent or more of its endowment.
- The Woods Fund of Chicago is bumping its payout to 14 percent in 2025 and 15 percent in 2026, according to Inside Philanthropy.
- MacArthur Foundation will up its grantmaking floor to at least 6 percent. (CEO John Palfrey’s “Six Hard Questions” public FAQ about the pros and cons MacArthur’s staff and board considered during their decision to increase payout provides helpful guidance.)
- TransitCenter made the decision to spend down all its $69 million endowment within 12 years.
- The James B. McClatchy Foundation committed nearly $7 million in new funding to support democracy in California’s Central Valley.
Read the full article about which funders are taking action now by Phil Buchanan, Molly Heidemann, and Kevin Bolduc at Center for Effective Philanthropy.