In a bold response to President Donald Trump's recent suspension of federal grants and foreign aid, the John D. and Catherine T. MacArthur Foundation has announced a significant increase in its philanthropic giving. The foundation plans to raise its annual payout from 5% to at least 6% of its endowment over the next two years, resulting in an additional $150 million in grants.
John Palfrey, president of the MacArthur Foundation, emphasized the urgency of the situation, stating, "This is a major crisis for our sector, and it's a time when those of us who can do more should do more." AP News He called on other philanthropic organizations to join in bolstering support for nonprofits affected by the federal funding cuts.
The Freedom Together Foundation, formerly known as the JPB Foundation, has responded to this call by pledging to double its grantmaking to 10% of its endowment. Deepak Bhargava, the foundation's president, likened the current climate to the AIDS crisis, highlighting the need for courageous action in the face of adversity.
These moves come amid growing concerns over the Trump administration's approach to civil society and philanthropy. Critics argue that the suspension of federal grants undermines the independence of nonprofit organizations and threatens the fabric of civil society. Palfrey warned of the dangers of capitulating to authoritarian tendencies, urging philanthropic institutions to stand firm in defending democratic values.
As the philanthropic sector grapples with these challenges, the actions of the MacArthur and Freedom Together Foundations signal a commitment to sustaining vital nonprofit work and resisting efforts to curtail philanthropic freedom.