Wealthy philanthropists are facing a changing landscape for charitable giving due to government cuts creating increased funding needs but political battles making donations more complicated. A legal battle at Harvard University, cuts to foreign aid, and loss of research funding are prompting major donors to hold back or stay under the radar to avoid political backlash. Nonprofits are facing increased scrutiny from the Trump administration and are struggling to navigate a politically charged environment.
Harvard received almost $1.1 million in donations after a funding freeze from the White House, but major donors have not publicly announced large gifts. Wealthy donors are reluctant to take sides publicly, some of whom agree with government criticisms of nonprofits being too one-sided and political. The trend of relying on a smaller pool of ultra-wealthy donors for larger gifts is exacerbating the issue.
Donors are feeling urgency to fund nonprofits facing crisis, especially those reliant on federal funding. Some private foundation clients have stopped giving to causes singled out by the Trump administration. Despite the challenges, some philanthropists are stepping up their support through pledges and additional funding while navigating an unprecedented environment.
Philanthropists are slow to make decisions on priorities due to overwhelming need, and family foundations are considering how increased spending during a depressed market will impact their longevity. Some philanthropists, like the Square One Foundation, are prioritizing meeting the moment and coordinating resources to support grantees during this challenging time. The overall sentiment is a need for solidarity and protection of private resources to support causes regardless of politics.
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