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Philanthropy This Week

This newsletter featured a roundup of the most important news, opinion, tools, and resources of the week. The last issue ran on May 31, 2025 and was replaced by Need to Know This Week.

February 1, 2025
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From: Marilyn Dickey

Subject: Volatile Times for Federal Grants; and DEI’s Future at Foundations

President Donald Trump arrives to speak at the 2025 House Republican Members Conference Dinner at Trump National Doral Miami in Doral, Fla., Monday, Jan. 27, 2025. (AP Photo/Mark Schiefelbein)
Mark Schiefelbein, AP

Good morning.

It’s been a rollercoaster week for nonprofits and foundations, with the Trump administration announcing Monday that all federal agency grants, loans, and other assistance programs would be paused.

That was quickly followed by lawsuits seeking to thwart the order and then a stay by a federal judge. Tuesday afternoon the Trump administration issued an update, saying the order didn’t apply to all federal programs. The next day it rescinded the order altogether.

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President Donald Trump arrives to speak at the 2025 House Republican Members Conference Dinner at Trump National Doral Miami in Doral, Fla., Monday, Jan. 27, 2025. (AP Photo/Mark Schiefelbein)
Mark Schiefelbein, AP

Good morning.

It’s been a rollercoaster week for nonprofits and foundations, with the Trump administration announcing Monday that all federal agency grants, loans, and other assistance programs would be paused.

That was quickly followed by lawsuits seeking to thwart the order and then a stay by a federal judge. Tuesday afternoon the Trump administration issued an update, saying the order didn’t apply to all federal programs. The next day it rescinded the order altogether.

Alex Daniels followed every twist and turn, updating the story to reflect the news as it happened.

In a separate piece, Alex reported on the administration’s order to end diversity, equity, and inclusion efforts based on race and gender and how that affects nonprofit government contractors and large universities and foundations.

The administration said DEI programs violate “the text and spirit” of federal civil-rights laws by discriminating on the basis of race. In response, Richard Besser, president of the Robert Wood Johnson Foundation, said in a statement: “It is unconscionable that the Trump administration would co-opt the language and vision of the civil rights movement in these executive orders as it attempts to send our nation back to an era of rampant, state-sanctioned discrimination.”

And in an opinion piece, the co-founders of Stroika Inc. say foundations should prepare for trivial lawsuits and endless audits from the Trump administration that can quickly hinder nonprofits’ ability to operate.

“We’re both intimately familiar with this strategy,” they write. “We were born in the repressive former Soviet Union, and have supported activists and journalists in some of the most restrictive countries. We’ve seen this tactic used repeatedly in Hungary, Turkey, Russia, Uganda, and many others.”

For more articles and opinion pieces about the administration, see Nonprofits and the Trump Agenda, which we continually update.

Other highlights from this week:

    It’s never been more important to keep donors close. So Lisa Schohl offers some flexible and creative ideas to do just that. One bit of advice: Don’t try to be on every social media platform just because others are. “Simplify, simplify, simplify, “ one expert told Lisa, “because it’s better for you to have a really high-quality channel than to be on many channels.”

    In other fundraising advice, Jie Jenny Zou explains how to use social media influencers to boost giving.

    With all the challenges nonprofits are likely to face this year, having a savvy, engaged board should be a top priority, reports Jim Rendon. The board should have political savvy and financial expertise, among other qualities. “We are going into a time of real defensiveness, but also a time where there’s a really great opportunity to build what we want for the future,” said Janis Rosheuvel of the Building Movement Project. “This time is not going to last forever. We’re going to try and build infrastructure for the future.”

    — Marilyn Dickey, Senior Editor, Copy


    Webinars

    • 020625_unlocking_COP_newsletter_Plain.jpg

      Today: February 6 at 2 p.m. ET | Register Now

      Corporations provide many forms of valuable support to nonprofits. Join us for Unlocking Corporate Grants and Partnerships where you’ll learn how — and why —businesses partner with nonprofits, what they look for in potential collaborations and grantees, and how to engage employees in ways that help your organization and deepen ties with companies.
    • 022725_the psychology of thanking_V2_COP_newsletter_Plain.jpg

      Today: Thursday, February 27 at 2 p.m. ET | Register Now

      Crafting donor thank-yous that deepen ties with supporters requires more than strong writing skills; it takes an understanding of donor motivations. Join us for The Psychology of Thanking Donors Well to learn about new research into what makes donors feel valued. Our speakers will explain how to analyze your donor communications, use language that resonates with donors, and increase giving to your cause by taking your thank-yous to the next level.

    More News, Advice, and Opinion

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      An Open Letter to MacKenzie Scott: Six Steps to Ensure Your For-Profit Investments Do the Most Good

      By Antony Bugg-Levine
      Launching a successful impact investment program isn’t easy, as Scott may find. These strategies can help.
    • Philanthropy leader Michael Bailin
      Opinion

      Remembering Michael Bailin: Philanthropy’s Best Supporter — and Critic

      By Marc Freedman and Nancy Roob
      A trailblazing leader, Bailin spent his career questioning the field’s methods — and pushing it to do better.
    • FILE - A person heads into a Target store Thursday, Jan. 11, 2024, in Lakewood, Colo.  (AP Photo/David Zalubowski, File)
      Diversity, Equity, and Inclusion

      Target’s DEI Rollback Raises Questions About the Retail Giant’s Philanthropic Commitments

      By James Pollard, Associated Press
      Target and the Target Foundation have made big gifts to groups working on Black economic empowerment and LGBTQ+ acceptance.
    • Homeowner David Marquez, left, holds a metal detector as his father, Juan Pablo Alvarado, right, and a friend look for the remains of gold jewelry and other silver items inside the walls of their multi-generational home in the aftermath of the Eaton Fire, Sunday, Jan. 19, 2025, in Altadena, Calif. (AP Photo/Damian Dovarganes)
      Grant Making

      The Foundation Providing Quick Disaster Relief in L.A. and Beyond

      By Tamara Straus
      The Emergency Assistance Foundation helps corporations provide rapid aid without needing to run their own tax-exempt entity.

    WHAT WE’RE READING ELSEWHERE

    Some nonprofits are getting back to work after the Trump administration rescinded a freeze on federal grants that sowed widespread confusion. Still, groups are bracing for cuts down the road as the administration continues a review of government spending to end support for what it calls “woke” ideologies. Kendra Davenport, the CEO of Easterseals, said the freeze sent some of the charity’s affiliates into a panic, “calculating that they could afford to work for only a few days without federal funds.” (New York Times)

    Kash Patel, President Trump’s choice to lead the Federal Bureau of Investigation, formed a nonprofit in 2022 that seemed focused more on promoting himself than doing good. The Kash Foundation promoted Kash’s media appearances and sold his books as well as T-shirts with his name on them, which were made by a company he co-owned. It spent more on advertising and promotion than on charity, according to its most recent tax filing. An expert on nonprofit law said Patel’s use of the charity for self-promotion raised questions. A spokeswoman for Patel said he had lent the foundation $150,000 to launch it “and that the group had made more than $1 million in donations.” (New York Times)

    Some lawyers and nonprofits helping undocumented people prepare for immigration court were blocked from detention sites and had their federal grants suspended following an executive order last week targeting programs for immigrants without legal status. Advocates say the programs helped immigration courts function more effectively, but supporters of the suspension say people in the country without legal status are not guaranteed government-funded counsel and that the move will expedite long-needed deportations. California has a bill in the works to provide $25 million for pro bono lawyers for people likely to be targeted by the Trump administration, including immigrants and transgender people. (Los Angeles Times)

    The Supreme Court has agreed to consider whether the country’s first publicly funded religious charter school should be allowed to open. Oklahoma’s highest court ruled that using tax dollars to fund the Catholic school would violate the constitution’s separation of church and state, overturning a state board’s approval of the church’s application. Conservatives say the ruling amounts to religious discrimination against the Catholic Church, while the American Civil Liberties Union and other groups said in a statement: “The law is clear: Charter schools are public schools and must be secular and open to all students.” (Associated Press)

    Oscar Tang and Agnes Hsu-Tang are the rare donors of Asian descent to enter the top tier of America’s cultural philanthropists. Their $125 million gift to the Metropolitan Museum of Art helped launch the new modern and contemporary wing; their $40 million donation to the New York Philharmonic was the largest endowment gift in the orchestra’s history; and their donation of $20 million helped complete New York Historical’s new Wing for American Democracy. The couple had been low-profile donors until a pandemic-era wave of anti-Asian hate prompted them to be more visible to show “that we earned our right to be part of this society, that we are an integral part of this society,” Oscar Tang said. (New York Times)

    The Smithsonian Institution will close its office of diversity following an executive order banning diversity, equity, and inclusion initiatives in federal agencies. It is not clear how many employees will be affected. In an email to staff, Smithsonian Secretary Lonnie G. Bunch III said, “Our core values of fairness and equity for all remain unchanged.” Bunch, the former founding director of the National Museum of African American History, “has championed efforts to tell “the full American story.” (Washington Post)

    NEW GRANT OPPORTUNITIES

    Your Chronicle subscription includes free access to GrantStation’s database of grant opportunities.

    Youth Projects: The Call for Kindness Fellowship empowers youth leaders ages 13 to 23 in the United States to implement social impact projects that inspire kindness and strengthen communities. Selected youth participate in a 12-month leadership development fellowship and receive a startup grant of up to $5,000, one-on-one coaching, virtual skill-building sessions, an in-person leadership retreat, mentorship opportunities, and a peer community. Application deadline March 9.

    Art: Walking Together: Investing in Folklife in Communities of Color, a national funding program managed by the six U.S. regional arts organizations, supports folklife and traditional arts rooted in communities of color in the United States. The program will provide $15,000 unrestricted awards for six traditional artists or practitioners in each regional arts organization’s area, supporting a total of 36 practitioners in their community-rooted traditional arts practice. Application deadline March 19.

    Marilyn Dickey
    Marilyn Dickey is senior editor for copy at the Chronicle of Philanthropy.
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