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The philanthropy sector appears to be losing its position on the moral high ground, according to Global Situation Room's Global Risk Advisory Council Reputation Risk Index for Q1 2026.
The “Focus on Philanthropy” study finds that philanthropic organizations are no longer simply seen as benefiting society at large. Instead, its authors say, there is a public perception that “large-scale philanthropy is less about altruism and more about reputation laundering, buying visibility and asserting privilege.”
One big problem Council members saw was the philanthropic sector’s inability to make a compelling case for the work it does. Almost nine out of ten survey respondents (87.3 percent) said that the sector fails to adequately get its message across.
There was also a sense from some Council members that philanthropic organizations can often be too easily influenced by political pressure, particularly when it comes from the Trump administration, which is often at odds with goals of those groups such as DEI or addressing the problems faced by immigrants. More than half (52 percent) said the sector made too many concessions in the face of political attacks, with 41 percent calling the level of concessions “appropriate.”
The waffling of corporate philanthropies on DEI issues has delivered a strong reputational threat, with 89 percent of survey respondents saying that the elimination of DEI programs has impacted the reputation of those philanthropies to some level.
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Such concerns result in philanthropic organizations finding themselves subject to the same kinds of reputational risks that all businesses face.
The overall #1 reputational risk cited in the survey, AI misuse, also plagues nonprofit groups. In addition, the study notes a “wave of data breaches” (the #3 risk overall) such as those that affected the Salvation Army and New York Blood Center, as well as the fake charity sites that often appear in the wake of hurricanes or other catastrophic events.
Expanding out from the philanthropy sector, the index lists what the Council found to be the top ten reputational risks that all organizations face today. Joining AI misuse and data breaches on that list are criticism from the president (#2), major operational disruption (#4) and child safety/harm (#5). And just when you might have though he was gone, Elon Musk crops up on the list at #10.
Looking forward, the survey respondents name the issues that could become bigger reputational threats for businesses. Those include supply chain entanglement with China, tariff resolution, data center backlash and the magnification of geopolitical instability.
“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 Global Risk Advisory chair Isabel Guzman. "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.”
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