Values-Aligned Philanthropy

Values-Aligned Philanthropy: Foundations Resisting Hate and Extremism

FatimaNajiy — Mon, 13 Sep 2021 14:25:35 +0000

Values-Aligned Philanthropy: Foundations Resisting Hate and Extremism FatimaNajiy Mon, 09/13/2021 - 10:25

Values-Aligned Philanthropy: Foundations Resisting Hate and Extremism

In late 2020, the Council on Foundations (the Council) launched the Values-Aligned Philanthropy project to continue to build on their previous efforts within the philanthropic sector to respond to growing concern about the issue of funding hate and extremism. The Council took this step recognizing that while there is significant work being done by grantmakers and social sector leaders across the country to prevent hate funding, there has not been a comprehensive analysis of what has been done and who is doing what from the perspective of philanthropy. The Council believes that mapping the eco-system will provide a baseline for identifying gaps, best practices, and next steps to addressing this problem. Research and writing for the project have been provided by Roey Thorpe, an independent consultant, with guidance from Council staff.

Download Document

Values-Aligned Philanthropy: Foundations Resisting Hate and Extremism

Questions?

Connect with Council Staff

Related Resources

Related Events

Potential Implications of Funding Protest Activities

MatthewCain — Fri, 26 Sep 2025 13:59:01 +0000

Potential Implications of Funding Protest Activities MatthewCain Fri, 09/26/2025 - 09:59

Potential Implications of Funding Protest Activities

Developed for the Council on Foundations by Christopher J. Armstrong, Partner at Holland & Knight

The Current Environment

Foundations are under increasing political scrutiny regarding their relationships with organizations that have engaged in protests, especially in situations where protestors are alleged to have engaged in violence or other illegal activities. This sharpened focus on the funding sources of protests may lead to increasing oversight of foundations or the tax-exempt sector generally and organizations perceived as left-leaning entities specifically.

Comments made by political leaders suggest a growing interest in undertaking investigations and other actions against not only certain parts of the tax-exempt sector, but also directly on entities such as foundations that provide funding. There is significant risk that members of the Council on Foundations may be subject to this scrutiny in the weeks and months ahead and should consider how funders may be implicated by the actions – real or perceived – of those they have funded.

Potential Actions Ahead

Because of the attention being paid to entities providing funding to certain tax-exempt groups, it is important for foundations to consider the variety of ways (none mutually exclusive) that this scrutiny might arise. Due to the political nature of this rising attention, as well as the power congressional committees have to launch investigations, there is not a predicable standard by which an organization is safe from being the subject of an investigation on these issues. Therefore, foundations who have supported groups that are themselves disfavored or might be associated with (correctly or incorrectly) violent protests will carry risk of themselves being subject to action.

Potential actions include:

Congressional Investigations
- Congressional investigations are perhaps the hardest to predict and prepare for, given the wide leeway congressional committees enjoy to launch investigations when and against whom the chair deems appropriate. Most congressional committees have many tools with which to conduct investigations, including voluntary information requests, the power to issue subpoenas for records and testimony, conduct depositions or transcribed interviews, hold public hearings, hold parties in civil or criminal contempt, and refer matters to the executive branch for additional action. Yet the most often used – and effective – tool is the ability to sway the court of public opinion through press releases, the use of traditional and social media, and the microphones of committee members.
Department of Justice Action
- The Department of Justice can launch an investigation in several ways and across several types of investigations, including general criminal investigations related to violations of federal law, civil investigations (regarding civil rights and fraud against the government), or civil or criminal litigation by the Tax Division concerning tax law. How DOJ will scrutinize foundations remains to be seen but based on the Administration’s public statements and recent actions, the most likely avenues are claims of funding illegal DEI practices, aiding the violation of immigration laws, or support for organizations involved in protests (especially if violent behavior occurred at the protest, whether the organization is involved or not).
Internal Revenue Service Action
- The Internal Revenue Service (IRS) could review an organization’s tax-exempt status, though such reviews typically begin with an audit, which legally and historically are not conducted publicly. Confidentiality aside, there are several ways the government attack tax-exempt status after an audit, such as:
  1. While 26 U.S.C. 7217 prohibits Executive Branch influence over taxpayer audits and investigations, there is an exemption for the Secretary of the Treasury to provide a written request to the IRS to take action “as a consequence of the implementation of a change in tax policy.”1
  2. Accusations of funding terrorist groups that are on a U.S. sanctions list or funding illegal activities or activities that promote or incite violence.
  3. Accusations of not serving a public purpose and having purposes and activities that are contrary to established public policy.2
  4. Accusations of impermissible use of funds for non-charitable purposes, or to fund “illegal” activity. The standard is generally that violation of constitutionally valid laws is inconsistent with exemption under section 501(c)(3). The IRS seems to weigh whether the illegal activities are substantial both in quantity and quality.

Relevant claims that the activities of charitable organizations are “illegal” may involve DEI, immigration, lobbying activity, and that participation in planned demonstrations that violate laws and ordinances may not be considered tax exempt, particularly if the charity encourages its participants to ignore or violate such laws and ordinances.

Considerationsp

Foundations providing general operating support or specific project support for organizations should review the Council’s guidance on expenditure responsibility3 and speak with their counsel to understand any specific risks. Given the current political environment, it is important to keep in mind that perception – not strict adherence to laws and regulations – will likely guide which organizations are targeted for scrutiny in this environment. Should a foundation be aware (or become aware) that its funding went to an organization that was involved in overt partisan political activity, protests that may have included violent actions, aid to undocumented individuals in crossing the border or evading law enforcement, or other activities bearing political or legal risk, it will be important to work with counsel to review documentation of relevant pre-grant inquiries, the written grant agreement, and documentation of its ongoing monitoring and reporting to determine what further actions may be necessary.

Questions?

Connect with Council Staff

Mission, Vision & Values

Values-Aligned Philanthropy

Working with Government

Related Events

Related Resources

Values-Aligned Philanthropy: Discussing Responsible Giving With Donors

JasonLudwig — Mon, 16 Dec 2024 18:14:15 +0000

Values-Aligned Philanthropy: Discussing Responsible Giving With Donors JasonLudwig Mon, 12/16/2024 - 13:14

Values-Aligned Philanthropy: Discussing Responsible Giving With Donors

Foundation leaders committed to values-aligned philanthropic policies, which ensure grantmaking efforts does not fund hate and extremism, emphasize the importance of ensuring all stakeholders understand both the policies and the reasons for their creation. Values-Aligned Philanthropy: Discussing Responsible Giving With Donors shares insights, tips, and advice from the field to aid your own efforts in navigating this topic with donors and addressing their concerns.

Download for free in the store

Questions?

Connect with Council Staff

Related Events

Values-Aligned Philanthropy Board Discussion Guide

JasonLudwig — Fri, 01 Sep 2023 17:35:41 +0000

Values-Aligned Philanthropy Board Discussion Guide JasonLudwig Fri, 09/01/2023 - 13:35

Values-Aligned Philanthropy Board Discussion Guide

Foundation leaders committing to values-aligned philanthropy to ensure their grantmaking efforts do not fund hate and extremism may encounter hesitancy from unexpected sources: their own boards. In our new Values-Aligned Philanthropy Board Discussion Guide, we lay out tips for communicating the concept of values-aligned philanthropy to a board of directors, structuring a discussion to highlight its importance, and suggested answers to real-world concerns that other organizations have faced.

Download for free in the store

Questions?

Connect with Council Staff

Related Events

Are We Funding Hate?

nidale.zouhir@cof.org — Thu, 20 Oct 2022 19:13:02 +0000

Are We Funding Hate? nidale.zouhir@… Thu, 10/20/2022 - 15:13

Are We Funding Hate?

Frequently Asked Questions about Corporate Risk, Responsibility, and Response

Why should corporate philanthropy and corporate social responsibility staff be concerned about this issue?

Many corporations are taking steps to ensure that they are not funding hate and extremism through their corporate foundations, direct contributions, or employee giving programs. The reasons for this action vary, but fall into several broad categories:

Social responsibility: Companies that have built a reputation for acting in the public interest, with products and services that improve quality of life for their customers, do not want to contribute to organizations or causes that conflict with this commitment.
Brand consistency: For companies that have built their brand around strong alignment with specific social issues, communities, or organizational values, taking a public stand against hate and extremism bolsters their brand image and is part of their marketing strategy.
Risk management: As public awareness of the problem of hate and extremism has increased, so has media attention and organized response to the sources of funds. Public controversy can affect a brand for many years and be hard to correct, so companies continually work to avoid negative publicity that could affect their customer base. Reports of funding hate and anti-democratic extremism are big news, with Kroger, Amazon, and Chick-Fil-A representing just a few of many examples. It is far better to set up policies and procedures in advance of public disclosure of a problematic event, both to minimize the chances of a problem arising and to be prepared to respond in a decisive way if one does. Having a policy in place also gives you the ability to demonstrate your intention should a concern arise.

What can we do to prevent funding hate and extremism?

Companies define their values and brands in myriad ways, so there is no one-size-fits-all approach. A comprehensive policy will both decrease the chance of funding these causes and provide a roadmap for action should an accusation arise.

Corporate leaders who have stepped forward to take a principled stand against hate and extremism include the following:

The Association for Corporate Citizenship Professionals (ACCP) brings together professionals in the field of corporate responsibility and provides connections and resources, including sample policies, for corporate professionals putting their values into practice.
Chief Executives for Corporate Purpose (CECP) has a public statement from leaders of some of the biggest global corporations where they speak out against discrimination and hate. Companies can join by contacting CECP directly.
Amalgamated Foundation’s “Hate is Not Charitable” campaign offers an opportunity to join other philanthropic organizations taking a stand against hate.

How do we get started?

Become more familiar with the issue. The Council on Foundations offers a great starting point: our report and resource hub provide an overview of the problem, philanthropic response, and resources. Both the report and resource hub include links to published articles and reports, as well as sample policies and the Council’s statement encouraging the philanthropic sector to take action. We recommend supplementing this by researching your target markets and learning which are most impacted by hate groups. Regional philanthropic organizations can be valuable resources for finding philanthropic expertise in your geographic targets.
Determine whether your company has funded any groups that appear on lists of hate and extremist organizations (see below). Comparing a list of all grant recipients, including employee giving programs if you have them, lets you know where you stand. Including grantees from the past 5-10 years (depending on your capacity for this research and the tools available to you) will give you the most thorough data.
In consultation with your legal counsel, create a policy that considers the following questions:
- How does the policy align with our corporate values and goals?
- What is the risk/benefit analysis of creating such a policy?
- What types of activities will be covered by the policy? For example, some companies have policies that apply to foundation giving but not employee giving programs or customer-designated gift programs, while others have policies that apply to all three.
- How will you address gifts designated by corporate leaders, including board members?
The Council provides examples of policies on our resource hub, including these from Facebook, Amazon Smile, and Amalgamated.
Adopt a procedure for dealing with concerns as they arise. Your procedure will be specific to your company, but should at a minimum answer the following questions:
- Who is the point person in your company for receiving concerns related to hate funding? Keep in mind that these concerns may be triggered internally (staff, customers) or externally (media, watchdog groups).
- How will you gather information about the groups in question, and who will this information be shared with?
- Who are the decision-makers about the funding in question, and who needs to be notified about the decision?
- Will a public response be necessary, and if so, how will that be handled?

How do we identify hate groups?

The Council maintains a webpage of organizations that list hate, extremist, and anti-democratic groups, but there is no one definitive list. Many corporations use commercial tools to help screen organizations and support corporate giving: Global Giving, Benevity, Blackbaud, YourCause, CAF America, and Bonterra (formerly CybergGrants) offer proprietary screening mechanisms that enable corporations to set up giving programs, including employee and customer giving, and screen organizations based on tax status, ethical compliance, and other issues.

We Value Your Partnership!

The Council is available to speak with you further and is here to support you on this journey. We encourage you to visit the rest of our Values-Aligned Philanthropy Resource Hub. If you don’t find what you’re looking for, please let us know.

Questions?

Connect with Council Staff

Values-Aligned Philanthropy for Community Foundations

emily.moses@cof.org — Fri, 10 Jun 2022 14:10:16 +0000

Values-Aligned Philanthropy for Community Foundations emily.moses@cof.org Fri, 06/10/2022 - 10:10

Values-Aligned Philanthropy for Community Foundations

Through our Values-Aligned Philanthropy project, the Council on Foundations is encouraging foundations to take steps to ensure that they are not funding hate. Our white paper created a landscape scan of the issue and the work being done in the philanthropic sector to combat hate funding. We also maintain an online hub with updated links to resources and sample policies.

This toolkit is the latest addition to these resources: a step-by-step guide for community foundations developing and implementing an anti-hate policy, including suggestions for the structure and wording of the policy.

View a webinar recording for further guidance on using the toolkit.

Download for free in Store

Questions?

Connect with Council Staff

Related Events

Organizational Resources on Values-Aligned Philanthropy

FatimaNajiy — Fri, 10 Sep 2021 15:44:18 +0000

Organizational Resources on Values-Aligned Philanthropy FatimaNajiy Fri, 09/10/2021 - 11:44

Organizational Resources on Values-Aligned Philanthropy

Questions?

Connect with Council Staff

Values-Aligned Philanthropy

Related Events

Related Resources

Resources on the Rise of Hate Funding — Values-Aligned Philanthropy

FatimaNajiy — Wed, 08 Sep 2021 19:15:01 +0000

Resources on the Rise of Hate Funding — Values-Aligned Philanthropy FatimaNajiy Wed, 09/08/2021 - 15:15

Resources on the Rise of Hate Funding — Values-Aligned Philanthropy

Questions?

Connect with Council Staff

Values-Aligned Philanthropy

Related Events

Related Resources

Resources on Neutrality Paradox, Free Speech, and Related Issues — Values-Aligned Philanthropy

FatimaNajiy — Tue, 07 Sep 2021 21:24:21 +0000

Resources on Neutrality Paradox, Free Speech, and Related Issues — Values-Aligned Philanthropy FatimaNajiy Tue, 09/07/2021 - 17:24

Resources on Neutrality Paradox, Free Speech, and Related Issues — Values-Aligned Philanthropy

Values-Aligned Philanthropy

Values-Aligned Philanthropy: Foundations Resisting Hate and Extremism

Values-Aligned Philanthropy: Foundations Resisting Hate and Extremism

Download Document

Questions?

Related Resources

Related Events

​​Potential Implications of Funding Protest Activities​

​​Potential Implications of Funding Protest Activities​

The Current Environment

Potential Actions Ahead

Considerationsp

Questions?

Related Events

Related Resources

Values-Aligned Philanthropy: Discussing Responsible Giving With Donors

Values-Aligned Philanthropy: Discussing Responsible Giving With Donors

Questions?

Related Resources

Related Events

Values-Aligned Philanthropy Board Discussion Guide

Values-Aligned Philanthropy Board Discussion Guide

Questions?

Related Resources

Related Events

Are We Funding Hate?

Are We Funding Hate?

Frequently Asked Questions about Corporate Risk, Responsibility, and Response

Why should corporate philanthropy and corporate social responsibility staff be concerned about this issue?

What can we do to prevent funding hate and extremism?

How do we get started?

How do we identify hate groups?

We Value Your Partnership!

Questions?

Values-Aligned Philanthropy for Community Foundations

Values-Aligned Philanthropy for Community Foundations

Questions?

Related Resources

Related Events

Organizational Resources on Values-Aligned Philanthropy

Organizational Resources on Values-Aligned Philanthropy

Questions?

Related Events

Related Resources

Resources on the Rise of Hate Funding — Values-Aligned Philanthropy

Resources on the Rise of Hate Funding — Values-Aligned Philanthropy

Questions?

Related Events

Related Resources

Resources on Neutrality Paradox, Free Speech, and Related Issues — Values-Aligned Philanthropy

Resources on Neutrality Paradox, Free Speech, and Related Issues — Values-Aligned Philanthropy

Questions?

Related Events

Related Resources

Further Reading — Values-Aligned Philanthropy

Further Reading — Values-Aligned Philanthropy

U.S. Academic Centers for the Study of Hate and Extremism

Questions?

Related Events

Related Resources

Potential Implications of Funding Protest Activities

Potential Implications of Funding Protest Activities