Many posts have discussed the politics of philanthropy.
In a detailed email, Kim Lane Scheppele, a sociologist at Princeton, described the administration’s evisceration of the nonprofit sector:The entire nongovernment community (or — as we might say in tax parlance — the 501(c)(3) sector) has been threatened with a combination of loss of tax exemptions, cuts to federal funding and potential investigations.In this atmosphere, Scheppele continued,
Some statistics indicate that fully one-third of NGOS incorporated in the U.S. lost funding in the first half of 2025.NGOs are nervous — and some are pulling back from some of the causes that they know this administration does not support. Some NGOs have created “sister organizations” in other countries to shield resources from U.S. coercive measures (vindictive lawsuits, sudden tax-status changes) and provide an escape route if necessary.Tracking the financial condition of nonprofit groups is difficult at best. They are only required to disclose receipts and expenditures annually in 990 reports to the I.R.S. A tax-exempt group reporting receipts and expenditures for the calendar year ending Dec. 31, 2025, does not have to file until this coming May 15. In addition, charitable organizations with 501(c)(3) or 501(c)(4) designations do not have to disclose donors.
In this murky world of political dark money, Trump and Republican allies appear to have inflicted damage on the most powerful collection of pro-Democratic nonprofits, an interlocking network operating under the umbrella of Arabella Advisors that for two decades has channeled billions to liberal advocacy and get-out-the-vote groups. (I say “appear” because no documentation of current fund-raising and spending is available.)
In 2024 alone, according to I.R.S. reports, four groups aligned with Arabella — the Sixteen Thirty Fund, Windward Fund, Hopewell Fund and New Venture Fund — raised a total of $1.46 billion and spent $1.48 billion, largely in grants to liberal and Democratic-leaning groups.
The first clear signal that the Trump attacks were having considerable effect was a Gates Foundation announcement in June that it was halting grants to the nonprofits administered by Arabella Advisors.