Billions to NGOs from Dark Channels

The Discreet Foundation Funding of NGOs

This is a translation from an article published in German at the launch of a new organization: The Transparent Democracy Initiative. It aims to investigate the non-transparent funding of NGOs and other activist groups.

There has been much discussion in recent weeks about the state funding of NGOs. What has gone completely unnoticed is that activists receive at least as much money from wealthy philanthropists through barely comprehensible channels.

By Ludger Weß

Hardly anyone plays the high priest of morality, justice and transparency more consistently and convincingly than internationally active non-governmental organisations (NGOs). According to their own narrative, they are united in a supposedly great goal: to make the world a better place. To this end, they demand far-reaching social change, exert a massive influence on political decisions and shape media and social discourse.

In recent weeks, there has been much debate about whether the political commitment of the various lobby groups is compatible with the often significant state support they receive. However, it is at least as questionable how wealthy private donors finance these groups with billions. This is because they do so systematically with the help of networks that are difficult to understand, enabling them to remain anonymous and not appear anywhere as donors. Behind the polished image of the civil society movement lies a central, mostly unnoticed question: Which private donors finance these organisations - and with what intentions?

The Invisible Financiers: "Dark Funds"

A significant proportion of the funding that environmental NGOs (eNGOs in particular) receive comes from dark funds - complex structures that are often organised as foundations, trust funds or donor-advised funds (DAFs). DAFs in particular enable wealthy individuals and corporations to make tax-privileged donations without declaring it in public. The DAF can be earmarked for a certain NGO or campaign (via the foundation rather than the interest group). The control over the funds lies with trustees, while the names of the actual donors remain hidden. This is particularly tricky: Many of the very NGOs that regularly demand transparency and accountability from companies and governments are themselves evading any disclosure of their funding sources.

Network of Intransparency: The EDGE Funders Alliance

The financial web becomes even more difficult to penetrate when dark funds join forces to form networks - such as the EDGE Funders Alliance. This international alliance of over 300 foundations and philanthropic funds pursues the goal of "system change" - often in the context of environmental activism, degrowth, anti-capitalism and global justice.

Although EDGE is publicly committed to transparency, it remains completely unclear exactly where the alliance's funds come from and to which initiatives they are channelled. It is known that groups that openly agitate against the market economy and parliamentary structures are also supported - including, for example, Ende Gelände, Extinction Rebellion or the French ZAD ( Zone à défendre ) movements, which block infrastructure or industrial projects via permanent occupations. Groups that commit criminal offences can also be supported by the EDGE Alliance..

The Rise of the Agroecology Fund

The Agroecology Fund is a good example of the massive impact dark funds can have. Founded in 2012 by four foundations, it initially only had limited funds at its disposal. However, its budget doubled between 2022 and 2023, and pledges of more than 100 million US dollars are reported for 2024. Much of this new funding has come from American tech billionaires (after a change in their fiscal sponsor), with a large proportion specified for lobby campaigns against conventional agriculture tools. The sources remain in the dark: "Some donors choose to remain anonymous", according to the website. The aim is the massive and highly questionable reallocation of funds to agroecological projects and thus to combat conventional agriculture.

"The Agroecology Fund is unabashedly ambitious. We seek to move massive amounts of money into agroecology."

Agroecology Fund

Agroecology works closely the Food and Agriculture Organisation (FAO), which now sees agroecology as the key to achieving the UN Sustainable Development Goals (SDGs). It is striking that the McKnight Foundation, which is also a donor to the fund, is also a cooperation partner of the FAO. The proximity between funding, political agenda and institutional strategy raises questions about conflicts of interest.

The European Climate Foundation: A hub of discrete influence

Similar structures can be seen in Europe. The European Climate Foundation (ECF) is one of the key players in NGO funding in the area of climate policy. It supports lobbying, media campaigns and political initiatives. However, transparency hardly plays a role: there is no clear information on recipients and funding amounts. Their last two-page financial declaration (2023) showed a regranting and operating budget of €278 million (funded by other foundations). While the ECF publicly appears to be a neutral body, its targeted influence remains largely opaque.

Billions for Narratives: How much money is behind the movement?

The total amount of money that flows into environmental NGOs via dark funds can only be roughly estimated. Conservative estimates suggest at least USD 5 to 10 billion over the past five years. The Bezos Earth Fund alone, founded by Amazon founder Jeff Bezos in 2020, has awarded over two billion US dollars to date. The ClimateWorks Network has distributed over one billion US dollars, while Hewlett, CIFF and Bloomberg have each distributed several hundred million US dollars.

More on the order of magnitude

These sums create a considerable imbalance in social discourse. While industry organisations are legally obliged to disclose their activities, many NGOs operate under the guise of independence - financed by actors with a clearly defined political agenda. To this day, the term "civil society" conjures up images of voluntary work and grassroots democratic initiatives. In reality, however, many NGOs have long operated like strategic communications agencies - equipped with legal departments, professional press teams and international networks. Their influence on the media, science and legislation is enormous - but their accountability is minimal.

More on the role of foundations

Conclusion: No credibility without transparency

The environmental and climate movement faces a dilemma. Those who claim moral authority must also act with moral integrity. This includes the consistent disclosure of money flows, conflicts of interest and institutional dependencies.

Dark funds undermine these principles. They distort debates, obscure power relations and jeopardise trust in genuine civic participation. A new culture of honesty is needed for a democratic public sphere - also and especially in the name of "good causes".

Annex

Who benefits from dark funds?

Many well-known environmental NGOs are supported by dark funds - either directly or via intermediary foundations:

Agroecology Fund (internationally active)
Profile: Financier of agro-activist groups worldwide.
Donors: Rockefeller, Ford Foundation, Grassroots International.
Speciality: Supports systematic campaigns against industrial agriculture in the EU and the global South.

Carbon Market Watch (Belgium)
Profile: Monitoring and criticising European emissions trading.
Funders: ECF, Mercator Foundation, other philanthropic funds.
Speciality: Influential studies on "greenwashing" and certificate markets.

ClientEarth (UK/Brussels)
Profile: Environmental NGO focussing on strategic litigation.
Donors: European Climate Foundation (ECF), Children's Investment Fund Foundation (CIFF), IKEA Foundation.
Speciality: Engages in legal activism against states and corporations in the environmental field.

German Environmental Aid (DUH, Germany)
Profile: Lawsuits against industrial projects, e.g. car manufacturers and infrastructure projects.
Funders: Indirect support via ECF-affiliated networks, project funding from EU programmes.
Special feature: The non-transparent origin of third-party funds has been publicly criticised on several occasions.

Environmental Defence Fund (EDF, USA with EU activities)
Profile: Science-based NGO with a global climate strategy.
Donors: Hewlett Foundation, Bloomberg, ClimateWorks Network.
Speciality: Strategic partner of many NGOs and think tanks in Europe.

Giving Green (USA)
Profile: "Scientifically based" NGO for donation efficiency in the environmental sector.
Funders: Anonymous donation of USD 10 million via DAF structure, further funds via Founders Pledge.
Special feature: Recommends direct large sums to specific activist organisations.

Greenpeace (international, also strong in Europe)
Profile: One of the best-known environmental NGOs, active in global climate campaigns.
Donors: Officially mainly small donors, but references to project funding from foundations such as the Open Society Foundation, Oak Foundation and indirectly via DAFs.
Special feature: Claims to be independent ("We don't take money from companies, political parties or the state."), but research suggests structural funding from large foundation networks.

Health and Environment Alliance (HEAL, Brussels)
Profile: Political work on environmental health (e.. glyphosate, PFAS, pesticides).
Funders: Rockefeller Brothers Fund, Oak Foundation, ECF, various US foundations.
Speciality: Interface between environmental campaigns and EU health legislation.

Last Generation (Germany)
Profile: civil disobedience and high-profile attacks to draw attention to the climate crisis
Funders: Aileen Getty, Adam McKay and Abigail Disney as well as the A22 network, which is funded by the US Climate Emergency Fund (CEF); in Germany, support from Wandelbündnis e.V., an association that supports the movement's activists and pays them salaries of up to €1,300 per month
Special feature: the exact distribution of funds within the network is not completely transparent, nor is the origin of Wandelbündnis' funds.

Sunrise Movement (USA)
Profile: Radical US climate movement focussing on civil disobedience.
Financial backers: New Venture Fund (via Arabella Advisors), Wallace Global Fund.
Speciality: Close alliance with EU climate activists (e.g. Fridays for Future).

Transport & Environment (T&E, Brussels)
Profile: Lobby organisation for sustainable transport and emissions policy in the EU.
Donors: ECF, Bloomberg Philanthropies, ClimateWorks Foundation.
Speciality: Shapes EU policies on e-mobility, CO₂ limits and air quality.

Thanks to foundation dark funds, these NGOs usually do not receive direct donations from individuals or companies, but rather donations via intermediary organisations such as the ECF or other funds. The key problem lies in the disguised origin of this money, which is no longer publicly traceable through so-called donor-advised funds (DAFs).

Ludger Weß is the Head of Research and Managing Editor of the Transparent Democracy Initiative, an independent research project bringing transparency to the national and international funding of NGOs and other lobby groups.