Gates Foundation Cuts Ties with Democrat-Linked Firm

Thu Aug 28 2025
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Key points

  • Arabella linked to progressive causes
  • Nonprofits seek new fiscal sponsors
  • Move may weaken Arabella financially

ISLAMABAD: The Gates Foundation has ended its long-standing funding of nonprofit funds managed by Arabella Advisors, a consulting firm closely tied to progressive politics in the US. The decision, made in June and revealed through an internal announcement, has stirred unease in progressive philanthropic circles.

Arabella Advisors manages several “dark money” funds that support Democratic causes. Over 16 years, the Gates Foundation has given or pledged around $450 million to Arabella-managed entities, making it one of the firm’s earliest and most significant supporters, according to The New York Times.

In its internal memo dated 24 June, the Foundation did not cite political reasons. Instead, it stated: “Teams are increasingly working directly with programmatic partners — organisations that are deeply embedded in the communities we serve and closely aligned with our mission.” It said the move allows for “deeper, more durable relationships” and reflects “the kind of legacy we want to leave behind.”

Conservative watchdogs

While insiders say the decision was under consideration for some time, the political climate may have accelerated it. Arabella has become a target for conservative watchdogs due to its role in directing money to left-leaning causes.

The return of Donald Trump to the White House has increased scrutiny of such operations, especially as he moves to dismantle global health efforts tied to the Gates Foundation.

Bill Gates has reportedly taken steps to shield the foundation from political blowback, including reducing emphasis on diversity initiatives disliked by Trump. The foundation maintains that cutting ties with Arabella was “a business decision that reflects our regular strategic assessments.”

Operational support

Arabella insists its role is misunderstood, saying it “provides operational support to hundreds of philanthropic clients pursuing social change.”

The Gates Foundation’s funding has largely gone through the New Venture Fund, one of Arabella’s flagship funds, which supports both nonpolitical and civic engagement work. In 2023, Gates accounted for just 2 per cent of the fund’s income, according to its president.

The foundation’s withdrawal has prompted other nonprofits to reconsider their ties to Arabella. Some are now seeking alternative fiscal sponsors amid fears of political targeting and financial loss. Client exits could hurt Arabella financially, especially as it operates as a for-profit company backed by private equity.

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