The Democratic Party's presidential election failure and concerns over retaliation from the Donald Trump administration have led major donors to halt their contributions, resulting in large-scale layoffs at progressive advocacy groups in the United States. The New York Times (NYT) reported on the 16th (local time) that "organizations advocating for LGBT rights, gender equality, and other progressive values are reducing their workforce, and leaders who have long led these organizations are also leaving," noting that "some are in a position where they must worry about their very survival."
The largest LGBT rights organization in the U.S., the 'Human Rights Campaign (HRC),' has reduced its total staff by 20% this month. Another LGBT rights organization, 'GLSEN,' laid off 25 employees last month, while 'Run for Something,' which supports the election of progressive local candidates, cut 35% of its staff at the end of last year. The 'Center for American Progress (CAP),' a prominent Democratic policy think tank, also laid off 8% of its total staff.
The ongoing significant layoffs among progressive organizations are due to a continuous decline in donations. The NYT reported that the online small-donor movement advocating for progressive values, which emerged in response to the government during Trump's first term, has nearly vanished, and some major progressive donors in the U.S. have also stopped their contributions. Some donors express dissatisfaction that the Democratic Party has failed to present a clear vision following their electoral defeat.
Political consultant Alexandra Acker-Rhines, who is close to donors in Silicon Valley, said, "No one will contribute until they recognize that the current U.S. administration is not the same as before and plan how to navigate it." Staffers of Reid Hoffman, co-founder of LINKED and one of the largest Democratic donors, also noted that Hoffman is becoming increasingly skeptical about supporting progressive political projects.
Fears of 'retaliation' from the Trump administration have also affected the decline in donations. The warnings from President Trump about retaliation against enemies throughout his campaign have led to a 'chilling effect' on donations. Jeff Skoll, a billionaire in Silicon Valley and a longtime friend of Elon Musk, said, "There is immense pressure to be on Trump's side," adding that "it will take time for those who want to stand on the opposite side of Trump to muster the courage."
The NYT stated, "It is common for fundraising to slow down after a presidential election defeat and before the midterm election campaign kicks off," but noted that "after interviewing more than 50 donors and activists, many believe that the situation this year is different from previous years." It further assessed that "the current political situation is markedly different from 2017, when funds were pouring in for the Democrats."
Progressive donors are fearful of tax investigations, congressional inquiries, and lawsuits from the Trump administration. Hoffman said in a podcast, "The probability of retaliation by state agencies for my support of former Vice President Kamala Harris is more than 50%." Silicon Valley figure Cooper Tebow also stated that more than six major donors have halted their contributions due to fears of political retaliation, noting that "they are in a wait-and-see position to determine whether Trump will actually attack them or if it’s just bluster."
There is also a movement to donate anonymously to avoid the gaze of the Trump administration. Democratic fundraising official Liz Minella has launched a new political group called 'Connect Forward' this year. Registered as a 501(c) nonprofit, this organization has no obligation to disclose its donors. The progressive donor network 'Democracy Alliance' has changed its digital communication retention policy to reduce legal risks, deciding to retain emails and documents for just one month.
Some Democratic donors have started to donate to individual politicians rather than the party. John Morgan, a wealthy individual from Florida who strongly supported former President Joe Biden, stated, "I will now contribute to individuals rather than the party," criticizing that "the Democratic National Committee (DNC) learned nothing from the last election." The NYT previously reported that there are diverging opinions within the Democratic Party regarding the causes of the election loss, and the party has failed to establish a clear plan to regain power.