In a Time of Nonprofit Defunding, Will Foundations Put More Money on the Line?

As nonprofits face mounting pressure from funding freezes and executive orders under the Trump administration, many are asking: where are the foundations?

Despite widespread disruptions, including the gutting of federal support for DEI-related arts programs, most foundations have remained cautious, prioritizing strategy over urgency. Amber Hamilton of the Memphis Music Initiative criticized the philanthropic sector’s slow reaction, saying it feels more like “wealth protection” than social investment. Still, change may be coming. Major players like the MacArthur Foundation and Freedom Together Foundation have begun increasing their payouts beyond the mandated 5%, signaling a possible wave of bolder giving.

Others, like the Winthrop Rockefeller Foundation, are more cautious, balancing urgent community needs with the long-term sustainability of their endowments, especially in philanthropy-scarce regions like Arkansas. Some leaders believe it’s time for foundations to pay what Deepak Bhargava calls a “democracy tax”, increased funding to protect the core institutions of justice and equity. As the year unfolds, the question remains: will more foundations match their values with bold financial action?

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