Vermont Philanthropic Arm Set to Shut Down as Parent Company Halts Funding, Threatening Decades of Social Justice Advocacy
SOUTH BURLINGTON, Vt. (AP) — The Ben & Jerry’s Foundation, the philanthropic heart of the iconic ice cream brand, has announced its impending shutdown by the end of the year. This drastic measure comes after its corporate parent, Magnum Ice Cream Co., an ice-cream spin-off of global conglomerate Unilever, abruptly cut off its annual funding and ordered its three dedicated staffers to vacate their offices in South Burlington this past Wednesday. The move jeopardizes an estimated $600,000 in annual grants to vital Vermont organizations and casts a dark shadow over four decades of the brand’s pioneering progressive mission.
Legal Battle Intensifies Over Corporate Control
The looming closure is the latest escalation in a bitter legal dispute that has pitted Ben & Jerry’s Vermont-based independent board against its corporate owner since November 2024. Ben & Jerry’s alleges that Unilever, through its Magnum entity, has overreached its control, actively attempting to undermine the brand’s core social values. This includes accusations of pushing out the company’s CEO and interfering with its long-held political stances on critical issues. The central question now before a judge in the U.S. District Court for the Southern District of New York is whether the corporate parent indeed possessed the authority to unilaterally reshape governance and withhold crucial funding from the foundation.
Unilever Cites Audit Findings; Foundation Cries Foul
Unilever’s actions were precipitated by an audit of the foundation in April 2025, which, according to the corporation, uncovered “conflicts of interest and a lack of governance and financial control.” An unnamed spokesperson for Magnum stated to VTDigger that the foundation’s decision to cease operations is “entirely down to the Trustees and their decision to ignore the findings of an independent audit and failure to put in place basic good governance; much to our dismay.”
However, foundation leaders vehemently dispute these claims. Liz Bankowski, president of the foundation’s board of trustees, revealed that Unilever began withholding the philanthropy’s funding late last year. Despite the foundation subsequently adopting a robust conflict of interest policy, Bankowski stated, “the bottom line was that unless we changed our board, they were going to continue to withhold funding.” Ben Cohen, co-founder of Ben & Jerry’s Homemade, echoed this sentiment, dismissing the audit findings as “a bunch of trumped-up charges.” He added, “The foundation has been independently audited every year… I think that Magnum was searching in vain for some illegal or unethical activities. I think they found none.” Facing this ultimatum, the foundation’s leaders had no choice but to join the ongoing lawsuit, fighting to protect their funding and autonomy.
“Enormous Loss” for Social Justice Funding
The potential closure represents an “enormous loss” for the Vermont community and beyond. Since Ben & Jerry’s sold to Unilever in 2000 for an estimated $326 million, a key component of the merger agreement mandated Unilever’s financial commitment to the foundation. Over the past two decades, Unilever has contributed approximately $60 million to the foundation, enabling it to operate for 40 years as a vital source of financial backing for social justice organizations across the country. Critically, $600,000 of this annual funding directly supports Vermont-based groups such as Migrant Justice, an immigrant farmworker rights organization, and Outright Vermont, a nonprofit dedicated to LGBTQ+ youth. Rebecca Golden, the foundation’s director of programs for 34 years, emphasized, “We fill a particular niche that not a lot of other funders fill.”
Staff Evicted, Emotional Toll High
Golden is one of the three foundation staffers whose final day in the physical office was Wednesday, adhering to Magnum’s eviction order. While Magnum’s spokesperson did not directly address the eviction, they noted that the foundation’s leaders “took the position that its staff are not Ben & Jerry’s employees, despite utilising Ben & Jerry’s offices and systems.” Golden described the emotional toll, sharing that staff have navigated “the whole gamut, as we like to say of the seven stages of grief. But I think at this point we’re sort of in the acceptance phase.”
Clash of Corporate Philosophies and Political Activism
The broader legal battle underscores a fundamental clash of corporate philosophy. In a May filing within the lawsuit, Ben & Jerry’s alleged that Magnum’s actions were designed to “censor, intimidate and purge” the company’s independent board, which Cohen asserts was specifically created to safeguard its progressive values. This conflict became acutely visible late last year when three board members, including one outspoken critic of Israel, were removed following Unilever’s introduction of new governance practices. Magnum, in its motion to dismiss the lawsuit, maintains its ultimate authority and argues that the brand’s social mission must remain nonpartisan.
Political activism has been intrinsically linked to the Ben & Jerry’s brand since its inception in 1978. The foundation’s unwavering commitment to social justice is perhaps best exemplified by its support of Migrant Justice. Even when the farmworker organization considered a boycott of Ben & Jerry’s due to working conditions at its supplier farms, the foundation stood by them, ultimately leading to the company’s participation in the Milk with Dignity program, which collaborates with farmworkers for fair conditions.
“Free Ben & Jerry’s” Campaign Launched
In response to what he perceives as a corporate takeover of the brand’s ethos, Ben Cohen has launched a grassroots campaign, “Free Ben & Jerry’s.” His petition, demanding that Magnum sell Ben & Jerry’s to a “group of values-aligned investors,” has already garnered approximately 160,000 signatures. “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,” Cohen asserted.
Uncertain Future for Brand’s Social Mission
As the legal proceedings unfold, the future of the Ben & Jerry’s Foundation and, by extension, the independent spirit of the ice cream brand, hangs precariously in the balance. Unilever’s spokesperson insists the company remains “firmly committed to funding a grant-giving foundation, supported by appropriate governance controls to ensure it is living by its values.” However, Cohen remains skeptical, questioning what types of causes a corporate-controlled foundation would support, speculating, “My guess is that they would not be looking to fund entities that are opposed to the status quo.” The outcome of this dispute will undoubtedly set a significant precedent for the delicate balance between corporate ownership and social mission in the modern business landscape.
