Attacks on Ford Foundation Hamper Grant Making to Middle-East Causes

Long before the 2001 terrorist attacks focused foundations’ attention on the Middle East, the Ford Foundation,

in New York, made a considerable number of grants to charities in the region. By some estimates, the foundation has given at least $200-million since the 1980s.

In part because Ford has distributed so much money, it has attracted more attention and controversy than other grant makers.

In 2003, a handful of Jewish organizations accused Ford of regularly making grants to Palestinian groups that are openly anti-Israel and may have ties to terrorists. Although neither the critics nor government agencies have proved that Ford has supported terrorist groups connected to charities, the complaints led lawmakers in Washington to re-examine the tax status of foundations — and prompted Ford to stop supporting one of its Palestinian grantees.

In response to the critics, Ford held talks with Jewish groups and then issued guidelines for grantees that apply to all of the money an organization raises, not just what it receives from Ford. Before a group can receive money from the foundation, it must sign a letter saying it will steer clear of all groups allied with terrorists, as well as those that espouse bigotry or violence.

Ford also restructured many of its Middle Eastern grants so that they support programs that involve Israelis and Palestinians working jointly toward peace.

Ford’s actions received criticism from some grantees who said the required pledge was overly restrictive. It also convinced many foundations that making grants in the Middle East could be too controversial to be worthwhile.

What happened at Ford presaged an atmosphere that “has scared off some groups that worry about the controversy that can come from working internationally,” says Vartan Gregorian, president of the Carnegie Corporation of New York.

Judy Barsalou, vice president for grants and fellowships at the U.S. Institute of Peace, a grant maker that is supported by the federal government, says Ford has historically played an important role in getting Middle Eastern groups to work together for peace. But because Ford was attacked by powerful neoconservative and Jewish organizations, “other foundations have concluded that there are major land mines they would have to avoid if they wanted to make grants in the Middle East and survive,” she says. “A lot of foundations have looked at how Ford responded and have been scared off.”

Ford officials declined repeated requests to comment for this article. Susan V. Berresford, Ford’s president, has made it clear in previous interviews that she believes that its response to the concerns raised by lawmakers and other groups was appropriate.