The Ben & Jerry’s Foundation will shut down after its parent company cut funding and evicted staff, jeopardizing its 40-year mission of social justice.
Washington DC, United States Jul 17, 2026 ALN: The Ben & Jerry’s Foundation has announced it will cease operations at the end of the year following a funding cut from its corporate parent, The Magnum Ice Cream Co. This decision leaves $600,000 in annual grants to Vermont organizations and the foundation's 40-year legacy of progressive activism in jeopardy, pending a court ruling. The foundation has been a significant player in funding social justice initiatives, and its closure raises concerns about the future of these vital programs.
Founded in 1985, the Ben & Jerry’s Foundation has a long history of supporting grassroots organizations that advocate for social justice, environmental sustainability, and community development. The foundation has provided millions in grants to various causes, emphasizing the importance of local engagement and activism. The current situation marks a pivotal moment not only for the foundation but also for the communities that rely on its funding.
Ben Cohen, co-founder of Ben & Jerry’s, expressed his dismay at the decision, stating, “This is the other foot dropping in terms of the way Magnum is trying to destroy the social values of Ben & Jerry’s.” His statement reflects a broader concern among the brand's founders and supporters about the potential shift in corporate governance and its implications for the brand's identity. The foundation's closure comes amid a legal battle with Magnum, a subsidiary of Unilever, which has been ongoing since November 2024. The ice cream brand alleges that Magnum has overstepped its authority by pushing out the CEO and interfering with the brand's political stance.
The core issue before the court is whether Magnum had the right to alter the foundation's governance and withhold funding. An audit conducted by Unilever in April 2025 found conflicts of interest and governance issues within the foundation, prompting the funding cut and an order for staff to vacate their office by July 15. This audit has been a point of contention, with the foundation's leadership arguing that it was conducted with the intent to undermine their operations rather than to address genuine governance concerns.
Liz Bankowski, president of the foundation’s board of trustees, noted that the funding was withheld due to governance issues highlighted in the audit. She emphasized the foundation's commitment to transparency and accountability, stating that the board has always aimed to uphold the highest standards of governance. The foundation's leadership has since joined the ongoing lawsuit, which is being fought by the ice cream brand’s independent board, in an effort to secure funding. This lawsuit is currently pending in the U.S. District Court for the Southern District of New York, where the outcome could have far-reaching implications for both the foundation and the brand itself.
In response to the closure announcement, a spokesperson for Magnum claimed that the decision to shut down the foundation was due to the trustees ignoring audit findings and failing to implement basic governance practices. This assertion has been met with skepticism from the foundation's leadership, who argue that the audit was flawed and that their governance practices were in line with industry standards.
Despite the foundation's leadership framing the shutdown as a consequence of funding withdrawal, Cohen criticized the audit as unfounded, asserting that it was an attempt by Magnum to undermine the foundation's integrity. He stated, “I think that Magnum was searching in vain for some illegal or unethical activities. I think they found none.” This sentiment underscores the tension between the original values of Ben & Jerry’s and the corporate strategies employed by its parent company.
Since its acquisition by Unilever in 2000, the foundation has received $60 million in funding, which has been crucial for supporting social justice initiatives across the country. The foundation has no endowment and relies entirely on annual funding from its parent company, as stipulated in their merger contract. This reliance on corporate funding has made the foundation vulnerable to the shifting priorities of its parent company, raising questions about the sustainability of its mission.
Approximately $600,000 of this funding is allocated to Vermont organizations, including Migrant Justice, which advocates for immigrant farmworker rights, and Outright Vermont, a nonprofit supporting LGBTQ+ youth. Rebecca Golden, the foundation’s director of programs, emphasized the unique role the foundation plays in funding social justice initiatives. She has been a vocal advocate for the importance of the foundation's work, highlighting its impact on marginalized communities.
Golden, along with two other staff members, is set to leave the office following Magnum's orders. She described the potential shutdown as an “enormous loss” that would impact not only the organizations supported by the foundation but also Ben & Jerry’s employees who take pride in the foundation's work. This sentiment reflects a broader concern among employees and supporters about the potential loss of a vital resource for social justice initiatives.
As the situation unfolds, the Magnum spokesperson assured that the foundation's mission would continue, albeit under new governance. However, Cohen remains skeptical about Magnum's commitment to the foundation's original values, questioning what types of organizations the new foundation would support. This skepticism is rooted in a long-standing belief among the brand's founders that corporate interests can often clash with the mission of social justice.
Political activism has been integral to Ben & Jerry’s identity since its inception. The ongoing lawsuit alleges that Magnum is undermining the brand's social justice mission to censor and purge its independent board. In a recent filing, Ben & Jerry’s claimed that Magnum's new governance practices have led to the removal of board members who were critical of Israel. This allegation points to a broader concern about the potential politicization of the foundation and its mission.
As the lawsuit awaits a decision, Cohen has initiated a campaign to “free Ben & Jerry’s,” gathering around 160,000 signatures for a petition urging Magnum to sell the brand to investors who align with its values. He lamented, “The very values-led business model that built Ben & Jerry’s into this amazing, phenomenal brand is the very thing that Magnum is currently destroying.” This campaign reflects a growing movement among consumers and activists who are calling for greater accountability from corporations regarding their social responsibility.
The implications of this dispute extend beyond the foundation itself and into the broader conversation about corporate governance and social responsibility in the modern business landscape. As consumers increasingly demand that brands take a stand on social issues, the tension between profit motives and ethical commitments becomes more pronounced. The outcome of this legal battle will not only determine the fate of the Ben & Jerry’s Foundation but could also set a precedent for how corporate entities engage with social justice initiatives in the future.
This story was originally published by VTDigger and distributed through a partnership with The Associated Press. The ongoing developments in this case will be closely monitored by activists, consumers, and corporate leaders alike, as they seek to understand the evolving relationship between businesses and the social causes they support.
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