Philanthropy’s Response to the Radical New Reality
Posted by Stanford Social Innovation Review (SSIR) on June 24, 2025
The nonprofit sector is experiencing seismic disruption. Since the start of 2025, the new US administration has aggressively slashed social spending, defunding and dismantling major domestic and international organizations and programs—and thus, the vital services they provide—in the process. Meanwhile, the tax-exempt status of nonprofits, funding for higher education institutions, and the tax status of philanthropic endowments are falling under threat.
How should philanthropy respond? In recent months, many foundations and donors have spoken out against government funding cuts or announced increases in their giving. Others have entered into new collaborations or set out to spend down their funds entirely. Yet the scale of potential shortfalls is staggering, and threats of punitive government policies are chilling by design.
This collection of articles, developed in collaboration with the team at the John D. and Catherine T. MacArthur Foundation, aims to help philanthropists and their partners think through the choices before them. Contributors include leaders and thinkers from a wide variety of funding institutions, beginning with MacArthur Foundation President John Palfrey. Their stories reflect on the current moment, explain the strategies their organizations are taking, and highlight both urgent challenges and points of light.
More in "New Resources"
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- Free Social Services at the Free Library of Philadelphia
- New Report: Weaving the Dream: How Opportunity and Personal Agency Can Shape a Common Vision for America
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