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Foundations are emphasizing their community services to counter narratives of fraud and partisanship

A nationwide network of charitable foundations is encouraging its members to emphasize their positive contributions to American life, a 250th anniversary campaign aimed at quelling what it calls the “greater intensity” of scrutiny felt from the federal government and populist movements.

Popular notions of philanthropy as merely a game for the ultrawealthy to fund partisan projects and commit fraud have left the sector vulnerable to political attacks, as the Council on Foundations sees it, influencing policies that hamper essential community services. The advocacy group, which represents about 1,000 nonprofits, hopes to overcome what CEO Kathleen Enright calls the sector’s “perception gap” with its “Generosity Builds” campaign, launched Monday.

Enright believes most Americans don’t recognize their reliance on the charitable sector. Just about 1 in 20 adults said they or anyone in their immediate family received nonprofit services in the past year, according to a 2023 Indiana University Lilly Family School of Philanthropy report.

“This week, I got an MRI at Georgetown University Hospital, I participated in my church at St. Columba’s, my daughter was inducted into National Junior Honor Society. Four or five nonprofits have been instrumental in my life this week,” she said. “Folks just aren’t putting that tag on it.”

And that tag is growing increasingly important, Enright said. Last year, negotiations over President Trump’s tax and spending bill included proposals to levy new taxes on private foundations that Enright said would have taken resources from communities if they made it into the final law.

The battle over defining what nonprofits actually do has recently been amplified from the highest rungs of the Trump administration, which has upended decades of partnerships built with nonprofits. Trump froze, cut or threatened a sweeping range of social service grants characterized by the White House as “government largesse that’s often riddled with corruption, waste, fraud, and abuse.” More recently, the Department of Justice charged the Southern Poverty Law Center — a civil rights nonprofit accused by Republicans of targeting conservatives in its work tracking extremists — with defrauding donors through payments to informants.

Vice President JD Vance described the Ford Foundation, the Gates Foundation and the Harvard University endowment as “cancers on American society” back as a 2021 U.S. Senate candidate, telling Tucker Carlson that “we are actively subsidizing the people who are destroying this country and they call it a charity.”

“All across our country, we have nonprofits — big foundations — that are effectively social-justice hedge funds,” he said in a talk that year on “woke capital.”

Narratives about nonprofits being “overly politicized” or wasteful are “extreme minority stories” that don’t reflect how philanthropy operates, according to Enright.

Across many surveys, trust in the nonprofit sector has remained higher than most others. But its impact is sometimes difficult to measure and explain. The sector hasn’t faced an environment this challenging in almost six decades, according to Kathryn Thomas, the vice president of communications for the Charles Stewart Mott Foundation in Flint, Michigan.

She cited the congressional effort to increases taxes on foundations’ investment incomes and acknowledged the Trump administration’s federal funding cuts.

“In an era when everything is under partisan attack and there’s so much polarization, we really have to do a better job of emphasizing why we exist,” Thomas said.

Enright said the story of philanthropy is not one where a rich person “saves the day.” She sees growing concerns about billionaires’ influence fueling suspicion about philanthropists’ motivations. Some argue the charitable sector allows moneyed interests to decide how tax dollars are spent rather than elected officials.

The campaign will emphasize that most donors “have just a little bit more than they need and therefore want to give back,” she said, especially at the local level.

“Money does not solve problems. It’s a tool that creative people and institutions inside communities use to solve problems,” she said. “The real heroes of most of these stories are nonprofit leaders, religious leaders, civic leaders who just roll up their sleeves and get something done — but do it with some financial underpinning by charitable foundations.”

That’s the story told by the Gulf Coast Community Foundation in Sarasota, Florida. A 10-apartment affordable housing complex for military veterans opened last year with the foundation’s support.

The area has an “embarrassingly high” number of veterans without housing, according to Jon Thaxton, the foundation’s director of policy and advocacy. Many are priced out in Sarasota, increasingly a luxury destination with high real estate prices.

Local donors had been trying to build a similar project when they approached the foundation in 2020 for help. Thaxton secured land already vested for affordable housing, corralled $2.2 million in donations, got $800,000 from the city and won the backing of their U.S. representatives.

The foundation’s leaders believe their track record made that possible. Phillip Lanham, the president and CEO, noted the project was completed across multiple election cycles and a pandemic, suggesting that community foundations are well situated to “play the long game.”

“Most people think that foundations like us deal with money and donors. We really don’t. We deal with relationships and trust,” Thaxton said. “That’s our commodity. That’s what we earn. That’s what we save. And that’s what we contribute back to the community.”

The Council on Foundations will also elevate examples of early, ordinary philanthropists as part of its case for philanthropy as an integral “part of the American story.” Enright credited a formerly enslaved man with donating land in North Carolina that became an African Methodist Episcopal church that endures as a pillar of the local community.

Lillian Kuri, the president and CEO of the Cleveland Foundation, welcomed the focus on everyday philanthropists. The Cleveland Foundation is considered the first community foundation, established in 1914 by lawyer Frederick Harris Goff as a way to fund durable change in the city.

The foundation aims to find new ways to expand today’s tent of philanthropists dedicated to improving their surrounding areas. It announced new investments this week in a fund dedicated to turn vacant industrial land into job-ready work sites. They’ve also launched a fund that allows donors to invest in major Northeast Ohio companies, supporting local business growth while that money increases into a sizable amount that can be donated to nonprofits.

“Generosity cuts across everybody,” she said, adding that community foundations offer “a way for everyday people — not just the largest, wealthiest people — to participate in the change they want to see in their communities.”

Pollard writes for the Associated Press.

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Civil rights groups condemn Southern Poverty Law Center’s indictment and prepare for legal fights

The criminal indictment of the Southern Poverty Law Center this week was met with much outrage but little surprise from civil rights leaders, who have for more than a year prepared for heightened legal scrutiny from the Trump administration, and how to mount a coordinated response.

In rounds of calls immediately following the indictment, civil rights leaders discussed how to support the SPLC, a Montgomery, Ala.-based civil rights group founded in 1971 that has tracked white supremacist groups and been outspoken on voting rights, immigration and policing. Organizers on one call agreed that winning in the court of public opinion would be crucial as judicial proceedings began, leading to dozens of public statements of support and planned rallies.

And legal advisors to civil rights groups urged organizers to prepare themselves for similar criminal indictments, protracted legal action that may exhaust their resources and audits of their staff and internal documents.

The flurry of behind-the-scenes coordination represented a marked escalation and mobilization of plans for activist groups that have been at odds with the Justice Department since President Trump’s return to the White House last year. Organizers say they are prepared to back the SPLC in its legal fight.

“It’s a blatantly obvious attack on civil rights and civil liberties to whitewash the foot soldiers of the great replacement theory and other extremists. This coalition isn’t going silent,” said Maya Wiley, president and chief executive of the Leadership Conference on Civil and Human Rights, an umbrella organization of hundreds of civil rights groups.

Without addressing the indictment, a coalition of more than 100 activist groups on Tuesday published a letter vowing solidarity with groups that are “unjustly targeted” by the federal government. SPLC was a signatory to the pact.

“An attack on one is an attack on all,” the coalition declared. “We will share knowledge, resources, and support with any organization threatened by abuses of power.”

DOJ alleges criminal conduct in SPLC’s longtime informant network

The Justice Department alleges that the SPLC, which rose to prominence for its work prosecuting and tracking hate groups like the Ku Klux Klan, violated federal law through its network of paid informants in extremist groups. The DOJ claims the payments funded hate groups and misled the SPLC’s donors.

The SPLC now faces charges of wire fraud, bank fraud and conspiracy to commit money laundering in the case brought in the federal court in Alabama, where the organization is based.

“The SPLC is manufacturing racism to justify its existence,” said acting Atty. Gen. Todd Blanche at a news conference announcing the charges. Blanche promised the department “will hold the SPLC and every other fraudulent organization operating with the same deceptive playbook accountable.”

Longtime civil rights activists found the claims to be a disingenuous and partisan move that may empower extremist groups.

“The indictment is nakedly political and represents the Justice Department turning on itself,” said Marc Morial, president of the National Urban League. “It places the Justice Department in the posture of, in effect, defending white supremacist groups like the Ku Klux Klan and others.”

Advocates also view the indictment as part of the administration’s broader upending of civil rights law and the Justice Department’s prosecution of Trump’s political opponents.

The SPLC in recent years became a bogeyman among conservatives who resented that the watchdog designated several rightwing organizations that engage in Republican politics as hateful or extremist.

In October, FBI Director Kash Patel canceled the agency’s longtime anti-extremism partnerships with the SPLC and the Anti-Defamation League, which combats antisemitism. Patel at the time called the SPLC a “partisan smear machine.”

The Justice Department and SPLC did not respond to requests for comment.

Indictment represents marked shift for civil rights work

Advocates dispute the DOJ’s characterization of the SPLC’s work, which civil rights activists credit to combating extremist groups across the country.

“The problem is that the indictment essentially claims that it was a fraud on SPLC’s donors to use their funds to fight the Klan, the neo-Nazis and other white supremacist groups, when that is exactly why people gave to the organization,” said Norm Eisen, founder of Democracy Defenders Action, a legal group that works with organizations in legal disputes with the Trump administration.

Eisen added: “The notion that there’s something wrong with using informants and protecting their identities to prevent white supremacist violence is belied by the fact that that is not only what the SPLC did, but it is also the stock and trade of the FBI itself.”

Civil rights organizations are now preparing for further legal action against other organizations that disagree with or actively oppose the Trump administration. Organizations have reviewed their document retention, tax compliance and auditing policies over the last year to safeguard against any probes or lawsuits.

Some civil rights organizations have also floated creating new organizational structures that may better withstand legal scrutiny. On another recent call, activists floated restructuring some groups into for-profit entities, or potentially crafting new financial conduits for donors to give through to ensure that staff could receive pay if an organization’s assets were seized or frozen.

The preparations represent a marked shift for many civil rights leaders, who in recent years counted the Justice Department under both Democratic and Republican administrations as a reliable ally in key civil rights battles.

“What we are seeing in real time is an administration seeking to leverage its position to target individuals and organizations that do not agree with its political thought,” said NAACP President Derrick Johnson, who said the Justice Department has been “weaponized by dangerous forces.”

But for other leaders, the SPLC indictment raised the specter of a return to a previous era, when the Justice Department monitored — and at times prosecuted — civil rights leaders to disrupt their activities.

“We’re not backing down, but we are clear-eyed. Everyone could be in some form of jeopardy if you’re in the crosshairs of this administration,” said Juan Proaño, CEO of the League of United Latin American Citizens, a civil rights group suing the Trump administration over executive orders addressing birthright citizenship and mail-in voting.

“That’s what they’re looking for; they want this to have a chilling effect,” Proaño said.

Brown writes for the Associated Press.

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Former state Controller Betty Yee drops out of the governor’s race

Former state Controller Betty Yee dropped out of the 2026 governor’s race on Monday, citing low levels of support from voters and donors.

Yee, a Democrat, was part of a sprawling field of politicians vying to replace termed-out Gov. Gavin Newsom. But despite the bevy of prominent candidates running to lead the nation’s most populous state and the world’s fourth-largest economy, this year’s governor’s race has long lacked a clear front-runner well known by the electorate.

“The whole notion that voters are looking for experience and competence is not a top priority, and that’s been really my wheelhouse in terms of how we grounded this campaign was based on my experience,” she said in a virtual press conference Monday morning. “The donors have felt the chill of the polling … and it really just came down to where I’m not going to have sufficient resources to get us to the finish line.”

The former two-term state controller did not immediately endorse another candidate and said she would take a few days to assess the field before making an announcement.

The race was upended earlier this month when then-Rep. Eric Swalwell, among the leading Democrats in the race, was accused of sexual assault and other misconduct. The East Bay Democrat, who is facing multiple criminal investigations, promptly ended his gubernatorial bid and resigned from Congress.

Yee, 68, was well regarded by Democrats during her tenure in Sacramento. And she highlighted her no-drama persona on Thursday.

“California — had enough chaos, fear and horrendous political scandals? Ready for calm, cool, collected change? Some may consider that boring. But that’s the point. We need Boring Betty,” Yee posted on the social media site X. “No crisis. No circus. Just competent, drama-free leadership you can trust. #BoringisBetter”

But she never had the financial resources to aggressively compete in a state with many of the most expensive media markets in the nation.

Yee reported raising nearly $583,000 for her gubernatorial bid in 2025, according to campaign fundraising reports filed with the California secretary of state’s office. Yee’s announcement that she is dropping out of the race came days before the latest financial disclosures will be publicly reported.

Despite being elected to the state Board of Equalization twice and as state controller twice, Yee was not widely known by most Californians. She never cracked double digits in gubernatorial polls.

Her name will still appear on the ballot. She was among the candidates who rebuffed state Democratic Party leaders’ request earlier this year to reconsider their viability amid fears that the party could be shut out of the November general election because of the state’s unique primary system. The top two vote-getters in the June primary will move on to to the November general election, regardless of party affiliation.

Though California’s electorate is overwhelmingly Democratic, the makeup of the gubernatorial field makes it statistically possible for Republicans to win the top two spots if Democratic voters splinter among their party’s candidates. Yee said fear of that scenario playing out “kind of took over” the gubernatorial race.

“Was it possible? Yes. Was it plausible? No, we’re in California. That was not going to happen,” she said, adding that the top-two primary system should be done away with.

Still, Yee was beloved by Democratic Party activists, and previously served as the party’s vice chair.

No Democratic candidate reached the necessary threshold to win the party’s official endorsement at its February convention, but Yee came in second with support from 17% of delegates despite calls for her to drop out of the race.

“Every poll shows that this race is wide open, and I know this party,” she said in an interview at the convention. “Frankly, I’ve been in positions where it’s been a crowded field, and we work hard and candidates emerge.”

The gubernatorial primary will take place June 2, though voters will start receiving mail ballots in about two weeks.

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