The Marguerite Casey Foundation is set to substantially elevate its donations this year to a notable $130 million. This financial boost aims to empower nonprofits tackling the policy shifts introduced by the Trump administration, focusing particularly on federal funding reductions and perceived threats to the autonomy of civil society groups. Ian Fuller, the foundation’s board chair and an experienced investment advisor, emphasized the urgency of utilizing the foundation’s resources to support communities affected by these administrative changes. He underlined the necessity of preserving the freedom to contribute and safeguarding the rights of the grantees to express and assemble freely.
This Seattle-based foundation has historically donated between $23 and $57 million annually since 2019. The decision to increase its financial commitment marks a significant deviation from its usual pattern. The foundation is also expanding its support to include organizations it hasn’t funded before, allocating $3 million to the National Council of Nonprofits. This organization has notably challenged the Trump administration in court over potential freezes in federal funding. Carmen Rojas, President and CEO of the foundation, expressed that they are stepping up to provide crucial resources to address gaps in information and organizational support.
Established in 2001 using funds from Jim Casey, the founder of United Parcel Service, the Marguerite Casey Foundation typically supports its grantees by covering up to 25% of their budgets for a duration of five years, yet they do not entertain unsolicited funding applications. Rojas highlighted the foundation’s steady support for community-driven organizations ensuring that governmental actions consider all citizens’ welfare, not just that of the affluent. While the foundation has already distributed $40 million this year predominantly to previous grantees, a substantial portion of the year’s total donations will focus on new beneficiaries, with special attention to journalism organizations such as More Perfect Union, Deep South Today, and the National Trust for Local News.
In an overarching trend, other notable foundations like the John D. and Catherine T. MacArthur Foundation and the Freedom Together Foundation have also vowed to increase their donations this year. Among them, the Northwest Area Foundation, which serves regions and Native American tribes from Minnesota to Washington, declared a doubling of its grant distribution. Generally, it’s rare for foundations to disperse funds directly from their endowments, which are primarily set aside for sustaining future activities through investments. Foundations are mandated by the IRS to disburse an equivalent of 5% of their endowments annually.
George Suttles, the executive director of Commonfund Institute, urged all foundations to consult their investment advisors on the implications of increasing spending now. He raised a pivotal question for the philanthropic community regarding their role: to deftly manage assets as long-term institutional investors or to actively support grantees and communities in need? The balanced answer seems to be a mix of both responsibilities.
The Trump administration has actively scrutinized the independence of nonprofit organizations and made efforts to deter them from implementing programs involving LGBTQ+ individuals or those designed to aid specific racial or demographic groups. Recently, inquiries from the Department of Government Efficiency encouraged the Vera Institute of Justice to consider introducing a federal team within its operations. Simultaneously, President Donald Trump openly questioned the validity of Harvard University’s tax-exempt status, citing concerns about its educational content. Even in the pre-election period, Vice President JD Vance criticized the financial support for movements championing social justice during a speech in 2021, advocating for the removal of special tax privileges for nonprofit foundations.
In February, the White House directed federal entities to reassess all nonprofit funding endeavors, asserting that several were undermining the nation’s security and public welfare. However, overspending isn’t the sole remedy for countering funding cuts or the uncertainty faced by nonprofits. Initiatives like the Trust-Based Philanthropy Project encourage funders to align closely with nonprofits, stressing the importance of listening, maintaining transparency about funding choices, and offering additional resources like legal or financial assistance. Additionally, the Council on Foundations has urged its members to pledge their support for the donors’ freedom in giving. With over 430 backers, they underline a common goal: while beliefs and priorities may differ, philanthropic organizations are unified in protecting their First Amendment right to contribute, reflecting each institution’s unique values.