Philanthropy This Week

Goodwill Industries of East Texas, Inc.

Good morning.

Many nonprofits have raved about how empowering MacKenzie Scott’s gifts have been and the profound impact they’ve had on their ability to carry out their missions. Now the Center for Effective Philanthropy, which surveyed more than 800 recipients of her large, no-strings-attached contributions, has issued a report showing five ways her giving has boosted grantees’ work.

One example: Goodwill Industries of East Texas, which in the five years since receiving $5 million from Scott has expanded its programs and revenue streams and grown its operating budget from $11.9 million to $17.1 million.

The survey also debunked the theory that nonprofits receiving sudden big gifts would spend them too quickly or that a large contribution would discourage other donors from giving. In fact, many nonprofits used Scott’s gift to boost their credibility or to ask for larger, less restricted grants from other funders.

Even so, many foundations remain skeptical. Of the 250 foundation leaders surveyed by CEP, only 7 percent said her philanthropy had influenced them, though many plan to experiment with general operating support.

Elisha Smith Arrillaga, who co-authored the report, said the findings are a “call to action,” telling the Chronicle’s Sara Herschander: “The data shows this type of grant making works. We need to do more of it, and we need to do more of it soon so that nonprofits have the resources they need, especially at a moment like this.”

Other highlights from this week:

In our continuing coverage of the Trump administration and nonprofits:

• Eden Stiffman writes about a survey showing many nonprofit communications staff have gone quiet, fearing retaliation or a loss of funding. Foundations are less fearful, but nearly a third do have concerns.
• Stephanie Beasley reports on Trump’s defunding of the Climate Justice Alliance, which had been one of 11 organizations chosen by the EPA during the Biden administration to distribute $600 million to nonprofits.
• Alex Daniels examines what influence nonprofits might have in shaping policy decisions on Capitol Hill and how lobbyists can educate conservative lawmakers about their work.
• In an opinion piece, Eboo Patel likens the current era to the Gilded Age, with its extreme income inequality and the chumminess between the very wealthy and the political elite. But the Gilded Age, he points out, gave way to the Progressive Era. “Those in the social sector hoping for a similar outcome might want to take some time to study the life of the great civic figure of that era, Jane Addams, and the work of the institution she founded, Hull House,” he writes. “Her example shows how the building blocks of lasting social change can be put in place even as everything around us seems to be crumbling.”
• And, finally, if your nonprofit has been impacted by the new administration, we would like to hear from you.
• For more articles and opinion pieces about the administration, see Nonprofits and the Trump Agenda, which we continually update.

Corporations can be a rich source of support for nonprofits — and not only through grants. Besides the $36.5 billion they give to charities every year, companies can benefit as much as nonprofits do from charitable alliances, report M.J. Prest and Jie Jenny Zou, who share expert tips for nonprofits from corporate-giving strategists.

— Marilyn Dickey, Senior Editor, Copy

Some companies are reviewing their philanthropic activities in a new environment more hostile to diversity, equity, and inclusion efforts. Some executives fear that visible DEI-focused charity, while not illegal, could make their companies targets for harassment, activists’ campaigns, or litigation. On the other hand, potential younger hires tend to value those efforts, so some companies will try to thread the needle, for example by removing references to racial or ethnic groups and focusing more on recipients’ socio-economic status or geography. (CNBC)

In the latest reversal on diversity, equity, and inclusion, Mark Zuckerberg and Priscilla Chan’s philanthropy, the Chan Zuckerberg Initiative, has pulled the plug on its DEI efforts. The backtracking comes five years after CZI committed half a billion dollars to such efforts, and a month after Zuckerberg assured employees his philanthropy was committed to diversity. It also follows the path of Zuckerberg’s Meta, which has changed course on DEI efforts in the wake of the Trump administration’s efforts to stop diversity programming. Marc Malandro, CZI’s chief operating officer, told employees that the changes were in response to “the shifting regulatory and legal landscape.” (Guardian)

U.S.-funded health programs in Africa and Asia remain dormant, despite a federal judge’s order halting the administration’s efforts to close the US Agency for International Development. Tuberculosis testing, food for malnourished children, and clean drinking water for displaced people are among the services that have ended, despite waivers from the State Department allowing some critical services to resume. Even dozens of groups that have received waivers are not receiving payments. The Trump administration says emergency work is continuing, but it is weeding out programs that “in reality involved D.E.I. or gender ideology programs.” USAID “programs that had a gender focus included efforts to protect women from domestic violence and prevent H.I.V. infection in vulnerable teenage girls.” (New York Times)

Now that President Trump has installed himself as the chairman of the Kennedy Center, he faces a challenge raising private funds for the organization’s endowment. David Rubenstein, who has given more than $100 million over the years to the institution, has said he will honor all his pledges, even though Trump ousted him from his role as chairman of the organization’s board. And some fundraising experts suggested Trump’s success raising money for his campaigns bodes well. Still, others said donors could be turned off. “The center is now a division of the White House,” said E. Andrew Taylor, a scholar at American University. “This might make donors think twice about contributing to the federal government.” (New York Times)

Donors to left-leaning causes have pulled back, whether from exhaustion, anger at perceived Democratic missteps, or fear of retaliation from the Trump administration. Unlike in 2017, small-dollar contributions to politicians and interest groups have “slowed to a trickle,” while big donors lie low. As a result, even marquee names of liberal activism, including the Center for American Progress and the Human Rights Campaign, have made major staffing cuts. One strategist predicted some major contributors would resurface by May, “as anger toward Mr. Trump rose,” while a former adviser to one Democratic donor, who has moved to Canada, was much less optimistic. (New York Times)

Some Planned Parenthood clinics face a crisis of meager resources, high staff turnover, and aging equipment, all of which have sometimes led to substandard care. Some affiliates in states with abortion restrictions have been shut out of Medicaid or other family planning funds as their patient counts dwindle. Meanwhile, the organization’s bylaws direct most of the nearly $500 million raised by Planned Parenthood since the fall of Roe v. Wade in 2022 to advocacy and little to care provided by state affiliates. An executive with Planned Parenthood’s political action arm said that the clinics generally care for a population with many health issues and “health care outcomes are fine.” (New York Times)

Having already weathered a $400,000 drop in donations in the last quarter of 2024, nonprofit Miriam’s Kitchen in Washington, D.C., is bracing for more losses as Elon Musk makes deep cuts to the federal workforce. CEO Scott Schenkelberg called the year-on-year drop unusual and said he is worried about the ripple effects of federal layoffs and cutbacks. Half of the organization’s budget comes from charitable donations. Miriam’s Kitchen offers food, housing, and social services to about 10,000 people each year. (WTOP)

An Airbnb co-founder will donate $15 million to provide nearly 100 prefab houses for victims of the Los Angeles fires. Joe Gebbia is partnering with Steadfast LA, a foundation created by developer Rick Caruso that will match his donation. The homes will be built in Mexico by Samara, another company Gebbia co-founded. They will go “to those with low to moderate incomes who are uninsured, underinsured, or elderly and otherwise lack the money to rebuild.” (Los Angeles Times)

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

Health Care: The Sun Life Health Access Heroes Grant Program provides programmatic funding to nonprofit organizations improving health access in U.S. communities, with a focus on diabetes and oral health. Areas of interest include diabetes prevention, awareness, and education; diabetes management and care; treatment and recovery support for diabetes-related complications; obesity prevention; nutritional awareness and education; nutritional access and food insecurity; oral health equity and access; children’s oral healthcare; and oral disease prevention and management. Grants of $25,000, $50,000, or $100,000; application deadline April 30.

Sports: The Skatepark Project helps underserved communities throughout the United States create safe and inclusive public skateparks for youth. The Skatepark/Skatespace Grant of up to $25,000 is available to nonprofit organizations and municipalities seeking to build free, public skateparks or skatespaces in underserved communities. Application deadline March 31.