Major philanthropists wary of addressing New York City’s biggest needs

Major philanthropists wary of addressing New York City’s biggest needs

Many of New York City’s major philanthropists are wary of giving to causes addressing the city’s most significant current crises—including migrants, homelessness, housing, and the cost of living—the New York Times reports.

Based on conversations with more than 20 donors, philanthropic advisers, and fundraisers, the Times found that while donors have given generously over the past year to traditional causes such as private hospitals and cultural institutions, they worry that the city’s complex crises cannot be easily fixed, and have expressed questions about city hall’s ability to manage the city’s many problems—and in some cases are instead choosing to give to uncontroversial local causes or issues outside the city. The Mayor’s Fund to Advance New York City, which raised more than $77 million during the fiscal year that included the first half of 2020, raised just under $10 million during the budget year ending in June 2023—the first full fiscal year of Mayor Eric Adams’ term in office—the lowest amount in at least a decade, with a recent fundraising campaign to support asylum seekers bringing in less than $3 million. According to the Times, Adams has indicated that providing services for migrants could cost the city up to $12 billion without federal government intervention.

The city has a long history of private philanthropic support for municipal causes, including the creation of settlement houses by philanthropists when European immigrants arrived in the late 1800s. But lately, "even when donors do give to municipal causes, their money seems to be no match for the extent of the local budget cuts," the Times reports. For example, the New York Public Library, which raised $52 million in private donations during the last fiscal year, has suspended Sunday service at all branches following city budget cuts, and the Robin Hood Foundation awarded $3 million to the Mayor’s Fund last year to address the lack of affordable child care, but hundreds of millions of dollars were cut from the city’s 3-K program.

“It’s a hard conversation to have with donors when your mayor is saying, not only do we not have good solutions for a problem that should be solved by the federal government, and I agree with that, but we’re also cutting the budget,” said United Way of New York City president and CEO Grace Bonilla.

(Photo credit: Getty Images/Leo Patrizi)

Eliza Shapiro. "Wealthy donors pull back from New York City’s escalating problems." New York Times 01/08/2024.