Statement on Protecting Philanthropic Freedom and Independence
Philanthropy California, the statewide alliance of Catalyst of San Diego & Imperial Counties, Northern California Grantmakers, and SoCal Grantmakers, stands ready to defend philanthropy’s freedom of expression and its right to give without fear of retaliation. We believe an independent nonprofit and philanthropic sector — free from government overreach — is essential in maintaining a robust civil society, thriving communities, and a strong democracy.
Since January, the federal administration has rolled back and withheld funds from organizations not in alignment with its priorities. It has threatened to investigate and revoke the tax status of institutions across civil society that do not comply with its demands. In April, credible sources warned of a wave of executive orders targeting the tax-exempt status of organizations engaged in climate-related work. Last week, the House Ways and Means Committee released a tax package with provisions that would impose a tiered tax structure on foundation investment income and grant the Treasury Secretary unprecedented authority to revoke nonprofit tax-exempt status.
While some of these threats have not materialized, and many of those that have now face litigation, the impact on our sector has already been devastating. Tens of thousands of nonprofit jobs and hundreds of federal grants have been eliminated nationally, cutting off vital services and support that communities rely on. Many of our own members and their grantees have been impacted and are navigating economic uncertainty and impossible decisions related to reductions in staff, programs, and community support.
These actions set a dangerous precedent for our sector’s freedoms and pose substantial risks to philanthropy’s ability to serve our communities.
Philanthropy California remains committed to defending our sector’s independence and right to provide critical resources to nonprofits and communities nationwide.
Regardless of what comes next, Philanthropy California pledges to stand alongside our members. Our statewide alliance will continue to serve as a convener and resource for grantmakers working to serve their grantees and California’s communities. At the bottom of this statement, you will find several immediate action items, resources, and events funders can take to get involved in this moment. As we move forward, our team will continue to support California’s funder community in the following ways:
- Monitor and respond to attacks on civil society
- Serve as a liaison between our national partners and our California membership
- Convene and coordinate California funders on public policy strategies
- Partner with nonprofits to build a resilient sector
Philanthropy California collectively serves more than 700 funders working to create a better future for our state’s communities. Together, we can be a powerful voice for our grantees and the future of California. Alongside our national partners, we can become a collective force to defend the fundamental freedoms guaranteed to everyone in this country.
In Partnership,
Christine Essel | President & CEO, SoCal Grantmakers
Dwayne S. Marsh | President & CEO, Northern California Grantmakers
Megan Thomas | President & CEO, Catalyst of San Diego & Imperial Counties