MacArthur Foundation to increase giving for two years in response to Trump’s foreign aid freeze

The MacArthur Foundation will increase its annual giving from 5% to at least 6% of its $8.7 billion endowment for the next two years, totaling an extra $150 million. This increase is a response to the Trump administration's suspension of federal foreign aid and grants, creating a funding crisis for numerous nonprofits. The foundation's president, John Palfrey, urges other foundations to similarly increase their giving, advocating for a more proactive approach to philanthropy during times of economic uncertainty. The move follows a similar pledge by the Freedom Together Foundation, which doubled its grantmaking to 10% of its endowment. The decision highlights the significant role of federal funding for nonprofits, with government grants totaling $267 billion in 2021, compared to $103 billion from foundations. Palfrey points to past examples, like the COVID-19 pandemic, where foundations found innovative ways to increase funding for grantees. The increased giving aims to mitigate the severe impact of the federal funding cuts on communities and organizations both domestically and internationally. Nonprofits are experiencing significant uncertainty and anxiety due to these executive orders. Experts emphasize the vital role nonprofits play in supporting Americans, urging broader support during this challenging time. The MacArthur Foundation's action sets a precedent for a more responsive and proactive philanthropic approach in times of crisis.