In 1787, when Benjamin Franklin was asked what type of government the Constitutional Convention prescribed, he replied: “A republic if you can keep it.” 

This week, we will observe our nation’s Independence Day, a day intended for celebration and recognition of our freedoms as a republic. This is a time to reflect on the principles and values of our country and how we are upholding them today, both individually and collectively. It is also an important time to remind ourselves of our history, that of our First Nations, and how our heritages formed our nation—a nation of immigrants. As I reflect upon the fabric of our country and all who have rights to liberty and freedom, I am deeply concerned about challenges to the independence of our sector, including foundations as institutions and the rights of donors.

The First Amendment guarantees that philanthropic organizations and individuals have a constitutional right to donate to charitable causes that align with their unique missions and values. Part of philanthropic freedom is the right to support diversity, equity, and inclusion (DEI) efforts, including addressing racial equity, which are legal and critically important today and for our collective future. 

Philanthropy is grounded in the idea of love for humankind—it is nonpartisan and in support of all, not just some. 

Yet, there have been threats to philanthropy’s path to advancing DEI, including Executive Orders, the withholding of federal funds, seemingly spurious threats to charitable tax status, and calls for investigations of select nonprofits and foundations. The disruption to nonprofits caused by the federal funding freeze, along with the ongoing uncertainty and instability resulting from federal actions, threatens our sector’s long-standing partnership with the government. It negates our collective proven track record of working with government to better our communities and hinders our ability to effectively support Michigan children and families.

These actions at the federal level make it clear that we must remain steadfast in our commitment to Michigan communities. To do so, we must continue collective action that protects the independence of our sector, ensuring that the critical work of philanthropy and nonprofits continues.

The “One Big, Beautiful Bill” Act (OBBBA) is another example of a proposed policy that directly targets our sector – including new taxes on philanthropy – and threatens those who have been historically under resourced and underserved. The pressure on the safety net and its implications for Michigan’s children and families are deeply concerning. None of the federal budget proposals seek to mitigate the massive cuts to Medicaid and the safety net, which we know the nonprofit sector will be asked to address.

As the OBBBA works its way through the legislative process, we have seen some wins thanks to our advocacy efforts, underscoring the need for continued advocacy and education. This is a call for us all to lead boldly, now and moving forward. We must be prepared to protect our philanthropic freedom to ensure we have the necessary tools and resources to effectively support our communities, especially in the wake of significant federal cuts.

If we silently stand by and allow these challenges to go unchecked, we risk losing some of the fundamental freedoms that we celebrate on Independence Day.

We are seeing leaders across our CMF community and our national partners using their voice to shine a light on the policy impacts on communities here and across the country.

• Diane Yentel, president and CEO of the National Council of Nonprofits (NCN), has made national headlines as a courageous advocate for the sector. Yentel was a key witness at a Subcommittee on Delivering on Government Efficiency (DOGE) hearing in June, testifying in support of the work of charitable nonprofits.
• In a letter, “Conservative Leaders to Congress: 600% Tax Increase on Private Charity Harms Americans,” The Philanthropy Roundtable, along with other organizations, asked policymakers to oppose increased taxes on private foundations that were included in the earlier draft of the OBBBA. 
• Angelique Power, president and CEO of The Skillman Foundation, shared a message highlighting how the foundation is supporting its nonprofit partners, building alliances, finding legal resources for its community, strengthening security, and more amid a changing policy landscape. 
• Kate Levin Markel, president of the McGregor Fund, spoke out on social media about the need for disruption at the Mackinac Policy Conference, highlighting the lack of substantial conversations about the current policy environment and its implications for nonprofits and communities. She also noted that the conference is not accessible for nonprofit leaders due to its costs. “This year, the nonprofit leader-experts whose organizations are reeling the most under federal policy – our canaries in the coal mine – couldn’t afford to be there,” Levin Markel said.
• Grand Traverse Regional Community Foundation and Rotary Charities of Traverse City joined regional partners in an open letter to Northern Michigan policymakers. In the message, they noted: “Regardless of where one stands politically, certain facts are undeniable: recent executive orders, the cancellation of congressionally approved federal grants and the administration’s tariffs are already having a negative impact on our region.”
• Ridgway White, president and CEO of the Charles Stewart Mott Foundation, shared a blog about the importance of endowed philanthropy and the potential impact of a multi-tiered excise tax on private foundations for local communities, noting that if higher taxes were in play in the past, the foundation may not have been in existence and able to respond to the Flint water crisis. He shared in part: “Let foundations have the freedom to give and support those most in need without additional taxes or regulations.” 

These are a mere sample of how your peers are using their voices to speak up and educate policymakers and others about the need for action. We must speak up now and moving forward to protect philanthropy’s freedom to spend its resources and give back to our communities according to our values.   

There are many ways to show up and celebrate our independence - through your grantmaking and support of partners, and through the many pathways of advocacy, including educating your trustees, donors, policymakers and leaders in business and other sectors about your work. You are not alone in this. You are part of this vibrant and connected network of leaders here in Michigan and across the country through our strategic partnerships with our state and national partners.

In this fluid policy landscape, our team remains your champion and partner. Our continued work in policy is a key example of collective action, including providing testimony in hearings, meeting with lawmakers, writing letters, sector message sign-on opportunities, and more. If you have questions or would like to share what you’re learning from your partners and policymakers, or if you’re looking for guidance to share with your staff or board, please connect with our Policy Team.

Please join us in ongoing education and advocacy as we share messages around the value of the sector and the importance of continued freedoms and independence. Let us know what more we can do to help ensure our sector’s independence, impact and freedoms.

Thank you for leading boldly,

Kyle Caldwell

President & CEO

CMF

Resources for You

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Our Leading Boldly Hub features resources addressing common questions and needs from the field, ranging from risk assessments and scenario planning to federal grant reviews and tax-exempt status challenges.