Philanthropy’s Defining Moment: Will We Step Forward or Step Back?
Across the U.S., philanthropy is facing a pivotal test.
Programs once widely embraced like racial and gender equity, climate action, and democratic engagement are under intensified scrutiny. From potential threats to tax-exempt status and new taxes on foundation endowments, to funding freezes that strain vital services, the nonprofit sector is experiencing mounting pressure from multiple fronts.
And yet, within this uncertainty lies opportunity.
Pressure Meets Principle
Recent shifts in the legal and political landscape are prompting funders to ask hard questions:
Can we continue to support social change work without risking backlash?
Will we still have the legal protection to fund movements that challenge the status quo?
How do we balance our missions with increasingly complex compliance and public perception concerns?
Some donors are quietly pulling back.
But others, like the 700 foundations who have signed a joint statement defending philanthropic freedom, are leaning in. They recognize that funding with courage is not just a choice, but a responsibility.
As Women Moving Millions (WMM) CEO Sarah Haacke Byrd wrote recently in the Financial Times, this moment requires not retreat, but bold, unified action.
“If philanthropy stands for anything, it must stand for the freedom to uplift people, advance equity, and safeguard the democratic principles that make collective progress possible.” - Sarah Haacke Byrd, WMM CEO
The Risks of Silence
The warning signs are clear:
Legal threats to 501(c)(3) status for organizations deemed too “political”
Proposed hikes on investment income from endowments - especially those funding advocacy or organizing
Freezes or cuts in federal grants for nonprofits working on civil rights, climate, reproductive justice, and voting rights
For nonprofits doing frontline work, these developments signal increased need and fewer resources. Meanwhile, public trust in philanthropy hangs in the balance.
The fear? That funders may begin to self-censor—quietly exiting spaces where their presence is most critical.
Courageous Funding Is Needed More Than Ever
There is precedent for bold philanthropic leadership in uncertain times.
In 2016, the National Committee for Responsive Philanthropy (NCRP) urged foundations to:
Increase payouts
Fund resistance efforts and organizers
Provide multi-year general support
Use their voice in public debates
Fund the vision, not just the crisis
Many are taking these same steps now. And that commitment is helping to sustain movements bringing new voices into policymaking, protecting communities during public health crises, and driving transformative change.
Today’s environment demands conscious resolve - and more.
Collective Strength Is Our Best Defense
The growing number of foundations standing together in public defense of their right to fund freely sends a powerful message: philanthropy works best when it’s unapologetically principled, collaborative, and bold.
So, what can nonprofits and funders do in this moment?
Hold fast to mission even in turbulent waters
Find your coalition: collaboration builds protection and power
Reaffirm your values in word and deed
Fund the future: not just the safe, but the significant
Final Word: A Call to Show Up
Philanthropy is not neutral. It never has been. It is a choice about what gets funded, who gets supported, and which futures we make possible. In this defining moment, let us choose courage. Let us choose community. And let us keep showing up for the people and causes that need us most.
