The Bill & Melinda Gates Foundation, a philanthropic behemoth with assets valued at $77 billion, has officially terminated its financial relationship with Arabella Advisors, a consulting firm known for its support of progressive causes and Democratic candidates. The decision, announced internally on June 24 and later obtained by the New York Times, marks a significant shift in the foundation's funding strategy.
For nearly three decades, the Gates Foundation has been a crucial backer of nonprofit initiatives managed by Arabella Advisors, with approximately $450 million distributed or pledged to the firm's nonprofit funds over 16 years. These funds have played a substantial role in areas such as gender equality and education, providing essential back-office operations including payroll services.
The foundation's executives have expressed their intention to no longer make new investments with Arabella-related entities, nor extend existing grants. They are also seeking early exits from several long-term investments with the organization. The rationale behind this policy change is the foundation's desire to engage more directly with grant recipients and to reduce reliance on intermediaries. The internal announcement emphasized the opportunity to build deeper, more durable relationships with partners that are closely aligned with the foundation's mission.
This policy shift occurs amid heightened scrutiny of Arabella’s "dark money" funds that support Democrats and progressive causes. Bill Gates, co-founder of the foundation, has become increasingly focused on protecting the charity from potential political targeting. With President Donald Trump's administration threatening philanthropists with ties to Democratic policies and the tax-exempt status of specific nonprofits, Gates has reduced emphasis on diversity, equity, and inclusion causes to shield his charity.
Arabella Advisors, through its funds such as the New Venture Fund, has been a significant player in the political arena, contributing millions to super PACs dedicated to electing Democrats and defeating Republicans. The Sixteen Thirty Fund, another Arabella-managed group, has donated $97 million to such super PACs since 2016. These political activities have drawn criticism from conservatives, including calls by Elon Musk for an investigation into Arabella’s entities.
In response to the controversy, Arabella executives have downplayed the organization's political influence. Megan Cartier, Chief Marketing and Communications Officer, stated that Arabella provides operational support to philanthropic clients and does not engage in political activity. Lee Bodner, president of the New Venture Fund, reiterated that their grants are restricted to nonpartisan purposes and that the Gates Foundation's contributions accounted for only a minor portion of their funding.
The Gates Foundation's move to cut ties with Arabella could lead to a domino effect, with other charities following suit. This could potentially cripple one of the leading sources of cash for the left, a development that some see as an unexpected twist in the philanthropic landscape.
