In a move that may surprise some, Bill Gates and the Gates Foundation have quietly stopped funding certain politically connected nonprofit groups managed by Washington DC-based Arabella Advisors.
The decision, made in late June, signals a shift in strategy for the $77 billion foundation, which has historically supported health, education, and other social initiatives worldwide.
Direct Engagement Becomes the New Focus
Executives at the Gates Foundation explained that they will no longer make new investments with Arabella-related entities, will not extend existing grants, and will even seek early exits from some long-term investments.
The foundation cited a desire to engage more directly with grant recipients as a major reason for the change.
“Teams are increasingly working directly with organizations that are deeply embedded in the communities we serve,” the foundation said in an internal announcement.
“This is an opportunity to build deeper, more durable relationships and reinforce the legacy we want to leave behind.”
A spokesperson emphasized that the decision was a routine business move reflecting “regular strategic assessments and partnerships,” rather than a political statement.
Scrutiny of Arabella’s Political Role
The timing of Gates’ decision comes amid growing criticism of Arabella for its involvement in so-called “dark money” funds that support Democratic candidates and progressive causes.
Arabella has long managed nonprofit funds that assist other organizations with back-office operations, as well as politically focused initiatives, such as contributions to Democratic super PACs.
One of its largest funds, the New Venture Fund, has supported the Sixteen Thirty Fund, which has donated tens of millions to Democratic campaigns since 2016.
Other Arabella-managed entities, including the Windward Fund and New Venture Fund, have funded groups like Community Change and Community Change Action, which have engaged in activism such as protests against former President Trump’s deployment of the National Guard.
Conservative critics, including Elon Musk and nonprofit watchdogs, have argued that Arabella’s activities exert outsized political influence, while Arabella executives insist their role is strictly operational.
Gates Foundation Cuts Ties to Protect Its Mission
Gates has increasingly focused on insulating his foundation from political controversies and scrutiny, particularly amid threats from former President Trump regarding the tax-exempt status of nonprofits linked to Democratic policies.
Some analysts view the cut as part of a broader effort to ensure the foundation remains focused on global health and social programs rather than political advocacy.
The foundation was one of Arabella’s earliest backers, contributing roughly $450 million over 16 years.
Now, as Gates steps back, some nonprofits previously working with Arabella are also seeking to distance themselves in order to safeguard their relationships with the Gates Foundation.
Continuing Global Health Initiatives
Despite the move, the Gates Foundation continues to support initiatives such as women’s health worldwide.
Most recently, in November, the foundation awarded $41 million over five years to the New Venture Fund for global health programs.
Arabella executives maintain that Gates remains an important partner and that their work continues to serve communities across multiple sectors.
As Gates pursues a more hands-on approach with grantees and less reliance on intermediaries, the foundation’s decision may reshape how politically linked nonprofits operate and seek funding in the future.
