When Giants Sunset: The Dawn of a New Philanthropic Landscape

After 25 years since its origin, the Bill & Melinda Gates Foundation's recent announcement to sunset within 20 years by 2045 marks a significant moment in the philanthropic sector. As one of the most influential entities in global philanthropy, its decision to wind down operations invites reflection on the future of giving, power dynamics, and the role of foundations in societal change. This move challenges existing structures and presents an opportunity to reimagine philanthropy, particularly in supporting justice-oriented movements.

Yet, the Gates Foundation is not alone in facing this moment. In January, the Dorothy A. Johnson Center for Philanthropy published a trends report for 2025, which named this was to come, “More Foundations Opt for Planned Lifespans and Spend-Down Strategies.” Modern icons in wealth and charity, such as Warren Buffett and MacKenzie Scott have demonstrated advocacy in action through a “giving while living” approach and a departure from prevailing philanthropic norms. 

This challenges other and much older philanthropic giants—such as the Ford Foundation (founded 1936), the Rockefeller Foundation (founded 1913), and the Carnegie Corporation (founded 1911)—who have shaped the field for decades to follow suit and explore new paths. As these foundational players begin to reconsider their roles and legacy, we are presented with a unique opportunity to rethink philanthropy’s purpose, practices, and impact, particularly in supporting justice-oriented movements. 

A Legacy of Influence and Critique

These philanthropic giants have been instrumental in addressing a multitude of global challenges, from eradicating diseases to improving education. However, their approach has often been critiqued for perpetuating top-down models that centralize decision-making and resources. Interestingly enough, this announcement comes on the heels of the Grantmakers for Effective Organizations (GEO) annual learning conference, which was held in Charlotte. They published a report in October 2021, Reimagining Capacity Building: Navigating Culture, Systems & Power, which highlights how traditional capacity-building practices have often overlooked the cultural, systemic, and power dynamics that affect marginalized communities. These practices, while well-intentioned, have sometimes been inadequate in addressing the needs of communities of color, rendering them less effective in fostering true equity.

Seizing the Opportunity for Transformation

The foundation's decision to sunset signals a unique opportunity to shift the philanthropic paradigm in this turbulent policy climate where federal funding is undergoing drastic changes. By reimagining capacity-building efforts to center racial equity and community power, philanthropy can move towards more inclusive and effective models. The GEO report emphasizes the importance of grounding capacity-building practices in approaches that acknowledge and center racial equity, suggesting that such shifts are essential for addressing today's most pressing social concerns.

Additionally, the Trust-Based Philanthropy movement, co-led by GEO, presents a roadmap for how the philanthropic sector can shift its approach to one rooted in trust, long-term relationships, and shared power. This movement advocates for a fundamental shift from transactional funding models to those that prioritize authentic partnerships with communities, particularly those most affected by systemic injustices. As more of the giants evaluate new strategies, these principles will become increasingly important in ensuring that philanthropy can meet the moment and create more equitable, lasting change.

Short-Term Implications: Navigating Transition

In the short term, these shifts may create a funding gap in areas where there have been a significant player. This transition period presents a challenge for the philanthropic sector to ensure that critical initiatives continue to receive support. The GEO report suggests that grantmakers need to engage in deep dialogue and reflection on how they can better support nonprofits and communities, particularly those that have been historically underserved. Funders must shift from merely distributing resources to fostering long-term, trusted partnerships that empower local communities to lead their own solutions.

Long-Term Vision: Building a Just Philanthropic Ecosystem

Looking ahead, the philanthropic sector must evolve to support justice-oriented movements effectively. This involves not only providing financial resources but also investing in the leadership and capacity of nonprofits and communities to advance equity-centered change. The GEO report advocates for a transformative approach to capacity building that goes beyond traditional models, emphasizing the need to address cultural, systemic, and power dynamics in philanthropic practices. Furthermore, the Trust-Based Philanthropy movement highlights the importance of dismantling hierarchical structures in philanthropy to better support grassroots organizations and social movements. 

Conclusion: Embracing a New Era

These changes in the ecosystem represent more than a strategic shift; it is a call to action for the philanthropic sector as a whole, from funders to donors to advisors and frontline organizations. By embracing new progressive principles that challenge the traditional systems and reimagining capacity-building efforts, philanthropy can move towards a more equitable and just future. This moment invites all stakeholders to reflect on their roles and commit to practices that truly support and empower communities in their pursuit of justice.