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American charities and nonprofit groups are focused on climate change and fear that potential losses in their tax-free position under the Trump administration could put their programs at risk.
There is growing concern that the Trump administration is drafting an executive order next week on the eve of what is called Earth Day. Orders signed in January It targeted government’s “environmental justice” programs and spending.
It also follows the demolition of the US Agency for International Development (USAID) and the scope of other federal government activities related to addressing climate change.
Several staff from the US-based foundation and nonprofit organization said they hope the Trump administration will spend time abroad and end tax exemptions on projects focused on climate and racial justice.
Likelihoods have risen as President Trump threatened to remove Harvard’s tax-free status this week.
Private foundations and charities, including many universities and churches, benefit from the 501(c)3 status of US tax law. This will exempt tax payments and allow donors to request tax deductions on contributions, but limit political lobbying.
They said they began tweaking the language on their website, believing that government officials were scanning charity communications for reference to climate change.
Staff from major US charities said since January they had been trying to hold back all climate jobs in terms of food security, public health and linkage to economic growth.
“There’s a group of people at Capitol Hill who don’t see the climate as a threat and therefore think it’s not worth using charity dollars that will benefit from tax purposes,” the person said.
The Ford Foundation, Gates Foundation, Rockefeller Foundation, and Bezos Earth Fund are one of the US organizations that have, or receive donations from entities with, or have that status, with 501(c)3 status, based on their latest submissions, and have climate change-related programs.
Rajiv Shah, president of the Rockefeller Foundation, has donated about $6 billion, but said the challenge it faced was a way to “go back to basics.”
In March, the Breakthrough Energy Group, which was funded by the bill, cut staff and budgets related to public climate policy, but said it was working to support clean energy innovation. The Breakthrough Energy Foundation was granted tax-free status in 2021.
Last month, Don Gipps resigned as head of the Squall Foundation. The Squall Foundation has assets of over $800 million. “A completely new world has changed dramatically, where many of us and others in charity have changed dramatically,” in a LinkedIn post.
One person familiar with his ideas said he “has setback action to protect climate change,” but he said founder Jeff Squall was angry at the decision to “tone down” the Foundation’s work on climate change. Skoll closed attendee media last year. His film production company focused on progressive issues and brought about social change.
Former Democrat funder Squall attended Trump’s inauguration and in a post about X in February, he endorsed the idea of putting USAID under State Department control. GIP, who didn’t return a call from the FT, said in his post he needed time to “explor the strategic pivot” to support charity foundations such as “navigating this moment.”
Even as they face growing calls for support following the swing cut of the USAID budget, pressure is on nonprofits to pass communications on the Fine Tooth Comb. One person close to a major US charity said, “Willing donations won’t fill the gap.”
“It’s definitely going to be cold,” said Paul Paz YMiño, associate director of Amazon Watch, a California-based rainforest protection group founded in 1996. [the] The ability to raise funds and resources is not sorted out,” he said. He said the decision to revoke the tax-free status was part of a “multi-faceted approach to challenge.”
Climate capital
A place where climate change meets business, markets and politics. Check out the FT coverage here.
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