The American Civil Liberties Union (ACLU) has announced that they have lost a donor that provided a $20 million gift each year.  The loss will cause a 25% drop in their annual operating budget and will force the organization to make more cutbacks.

The family that makes the annual anonymous donation notified the ACLU in September that they will miss the payment for at least a year.  They cited market conditions as the reason for having to make the cut.

According to the New York Times, ACLU board members have said privately that the donor was David Gelbaum, a gentleman that made his fortune as a hedge fund manager and who now invests in clean technology.

There is some help being provided by other donors such as the Leon Levy Foundation, the Open Society Institute, Peter B. Lewis (chairman of Progressive Insurance) and John Sperling (founder of University of Phoenix).  These donors have stepped up to kick in an additional $23 million spread over three years, but that money will have to be shared with state affiliates.

Last year, the ACLU laid off 10% of its national staff; trimming the headcount by 36.  Anthony D. Romero, the executive director, also agreed to a 15% pay cut.  To get its operations in line with the damaged economy, they also initiated a hiring freeze, cut travel and cancelled conferences.

According to the New York Times, Mr. Gelbaum began contributing about $50,000 a year to the ACLU beginning in the early 80’s and that his annual giving rose to $22.5 million by 2008.

The only condition that he placed on his annual gift was that he remain anonymous.

(via NYT)

Tags: ACLU