The Gates Foundation has previously contributed approximately $450 million to left-leaning causes through Arabella Advisors.
The Gates Foundation has quietly cut off a major financial pipeline to a firm closely tied to the Democratic Party, according to internal communications first obtained by The New York Times.
The $77 billion philanthropic powerhouse confirmed it will no longer fund nonprofit entities managed by Arabella Advisors, a D.C.-based consulting firm that administers billions in anonymous donations to left-leaning causes. Over the years, the Gates Foundation has funneled roughly $450 million through Arabella-managed funds.
Now, however, the foundation says it wants to “build deeper, more durable relationships” by funding nonprofits directly and moving away from third-party intermediaries. While the Gates Foundation has framed the decision as business, some spectators believe a primary motive is insulating the foundation from partisan disputes.
Arabella Advisors and its network of “fiscal sponsor” funds have long drawn scrutiny from conservative watchdogs and lawmakers. The groups, which operate as nonprofit shell organizations, disperse money to progressive initiatives while shielding donors from public view. The Sixteen Thirty Fund, for example, has sent nearly $100 million to super PACs supporting Democrats or challenging Republicans.
Internal conversations at the Gates Foundation have reflected growing concern over maintaining its long-standing tax-exempt status and shielding itself from the kinds of legal and political challenges often directed at Arabella clients. Foundation CEO Mark Suzman emphasized that teams are now prioritizing “programmatic partners” directly involved in community work, rather than relying on umbrella groups that often operate in the political gray zone.
Arabella Advisors pushed back on the idea that its work is partisan, claiming in a statement that it does not “have donors, make grants, or engage in political activity.” However, public records and past donations reveal a network of affiliated funds that support Democratic priorities.
The consequences of the Gates Foundation’s decision to sever ties with Arabella Advisors are already visible. Several organizations that once relied on Arabella’s sponsorship have reportedly begun seeking alternative arrangements, worried about losing access to Gates funding. Two sources confirmed that some groups are preparing to exit Arabella’s New Venture Fund altogether to preserve their relationships with the foundation.
Arabella Advisors derives substantial revenue from managing its network of nonprofit funds. In 2022, it brought in over $60 million. Arabella was acquired in 2020 by private-equity firm Concentric Equity Partners, which recently removed the firm from its public investments page.
Lee Bodner, president of Arabella’s most prominent client fund, the New Venture Fund, insists that only a small fraction of its recent revenue came from the Gates Foundation.
“Gates has been an important partner since the beginning of New Venture Fund, and we continue working with them today,” Bodner stated. “Today, our work continues to expand in varied ways, and our partners recognize the high quality work we do is more important than ever.”
The weight of Gates’s exit is significant, however. As one of the earliest and largest backers of Arabella’s nonprofit network, the foundation’s departure signals a broader shift in the philanthropic world’s approach to political engagement.
