Donald Trump has intensified his confrontation with George Soros, the billionaire philanthropist whose charitable network funds hundreds of non-governmental organisations in the US and abroad. Last month the president signed a memo urging federal agencies — including the US Justice Department, the US Treasury and the IRS — to probe financial backers of what he called “domestic terrorism,” explicitly naming Soros as a potential target, the Financial Times reported.
The White House has also raised the possibility of stripping tax-exempt status from non-profits engaged in politically sensitive areas such as gender-affirming care for children or services to immigrants. For Soros’s Open Society Foundations (OSF), which controls $25 billion in assets, the allegations are baseless. OSF has vowed to resist what it calls “politically motivated attacks on civil society.”
Smaller groups feel the pressure
While OSF and other large philanthropies have the resources to push back, smaller charities say they feel exposed. Some have removed references to progressive causes from their websites. Others have lost staff who no longer want to risk association with politically vulnerable work. “There’s enormous fear right now,” said Sarah Saadian of the National Council of Nonprofits. Community organisations worry they lack the high-powered lawyers and financial backing needed to withstand an investigation.
Funding squeeze and staff losses
The pressure comes at a difficult moment. Many groups had already seen federal funding cut because of their work on issues like diversity, inclusion and climate change. According to data compiled by The Chronicle of Philanthropy, at least 22,000 jobs have been lost in the sector in the first half of this year. Leaders describe it as a “double blow”: fewer government dollars, coupled with rising scrutiny from Washington.
Foundations rally support
Major philanthropic organisations are trying to reassure their grantees. OSF and others have been calling smaller partners directly, promising continued legal and financial support. “We’re spending more money, not less money,” said John Palfrey, president of the MacArthur Foundation. One large foundation described providing security services after threats were made online against staff and grantees.
Trump has meanwhile escalated his rhetoric. He has referred to non-profits as “thugs and sleazebags,” language that advocates say has coincided with a rise in violent threats against their organisations.
Legal uncertainty, political stakes
The administration has widened its interpretation of terrorism, raising concerns that even small acts of protest could be treated as organised crime. US deputy attorney-general Todd Blanche suggested that demonstrators who shouted at Trump during a restaurant visit could face racketeering charges. Legal experts note that while the executive branch cannot unilaterally create new offences or order the IRS to target specific people, investigations alone consume significant energy and resources.
For now, large foundations say they will resist. But within the sector, many fear that smaller charities, already stretched thin, may cut back activities simply to avoid becoming the next target of the White House.
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