New Index: Philanthropy Making Too Many Concessions to Trump, Endangering Its Role and Reputation

WASHINGTON, D.C. – The latest edition of the Reputation Risk Index® (the Index) finds that over the last year the philanthropic sector’s credibility took a significant hit, as it abandoned programs and priorities when faced with political pressure. Fifty-two percent of the Global Risk Advisory Council (the Council) of over 130 former ministers and preeminent public affairs leaders said the sector bent too soon and too much. They believe this will lead to long-term reputational damage and hinder its ability to deliver on core goals in the coming years.

“Foundations are finding their core missions, from climate change to DEI programs, weaponized against them – and all at a time when AI advances rapidly, and federal funding for social safety net programs is being cut,” said Isabel Guzman, Chair of the Global Risk Advisory Council and former head of the U.S. Small Business Administration. "In order for organizations to fortify against reputational risks in 2026, they must bridge the gap between their stated values and the realities of operating in a highly politicized, AI-driven world.”

One of key challenges identified by the Council for philanthropy is poor communications. The sector has traditionally not sought to draw significant amounts of attention to itself, preferring to allow grantees and projects tell their stories. Now finding themselves in the spotlight and targeted, many organizations have struggled to effectively engage and wrest control of negative narratives about their work.

The rapid evolution of AI has also intensified reputational risks for philanthropic organizations. Bad actors have abused AI to fabricate charity sites, siphoning donations away from legitimate causes, such as disaster relief efforts during hurricanes. Even reputable organizations have come under criticism for using AI-generated "poverty porn," which critics have described as disingenuous and exploitative. According to the Council, a concerted effort is needed to rebuild public trust in the sector.

AI Misuse was the top reputational risk to businesses in the latest iteration of the Index. This is the second consecutive quarter in which members of the Council identified AI Misuse as their preeminent concern. They pointed to Anthropic’s clash with the U.S. Government as underlining the contours of the current clash between can and should when it comes to the technology, where short-term pressure to comply with government or market demands may come with a high credibility cost.

Targeting By or Criticism From President Trump remains the second most pressing concern for communications leaders, as the Administration increasingly leverages legal and administrative levers to try to create conformity. The past quarter saw the American president threaten to revoke ABC’s broadcast license following a terse exchange with a reporter. Members of the Council also identified data breaches and major operational disruptions as key vulnerabilities facing companies today. Recent major disruptions further fueled these concerns, including a massive data breach affecting 33.7 million Coupang customers and more than 4,500 flight cancellations by IndiGo. Both brands suffered significant reputational damage, which may be irreversible. 

To discuss the latest Index report, Isabel Guzman, Chair of the Global Risk Advisory Council; Aba Blankson, Chief Marketing Officer of the National Association for the Advancement of Colored People (NAACP); and Brett Bruen, CEO of Global Situation Room joined a panel moderated by Stacy Palmer, Chief Executive of the Chronicle of Philanthropy. They addressed the sector’s resilience against government scrutiny and the fallout from high-profile associations with figures like Jeffrey Epstein. 

Looking to next quarter, Council members are concerned about the ramifications of the continued U.S. conflict in Iran and how the closing of the Strait of Hormuz will strain supply chains. Council members also predict that child safety concerns will continue to rise as a reputational risk following YouTube and Meta’s court losses. “Child safety isn’t just a reputation issue but a moral failure — a crisis about humanity,” said Council member Fenella Grey, Co-Founder of Hello Tomorrow. “Governments and regulators are actively targeting online harms affecting children in Europe, and companies face massive backlash if platforms, products, or services harm minors.”

Past reports can be found at www.ReputationRisk.org.

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