Steve Sarowitz shuts down Wayfarer Foundation amid Blake Lively-Justin Baldoni legal battle

In a stunning development, billionaire philanthropist Steve Sarowitz has abruptly closed the Wayfarer Foundation, a major charitable organization that had given nearly $60 million to over 200 nonprofits, after a series of escalating personal threats tied to a high-profile lawsuit involving Hollywood stars Blake Lively and Justin Baldoni. The closure, which took place at the end of June 2025, left many nonprofits scrambling and shocked the philanthropic world. The decision came after Sarowitz received an anonymous threat referencing the Lively-Baldoni legal dispute and targeting his family’s safety, prompting him to move his giving to a more private, less transparent donor-advised fund.

In April 2025, the Wayfarer Foundation was thriving. Sarowitz and his team were hiring new staff, planning major events, and expressing optimism about the foundation’s future. “We’re in a period of profound growth. The Foundation is committed to its mission,” Sarowitz told grantees. However, on April 28, a small fire broke out at Sarowitz’s Chicago-area home. Later that same day, he received an anonymous threat demanding $80,000 and referencing his daughter, a student at Northwestern University.

The threat specifically cited allegations from a lawsuit filed by Blake Lively against Sarowitz, Baldoni, and Wayfarer Studios. As the threats escalated over the week, Sarowitz and the board made the unanimous decision to shut down the foundation. Grantees were informed that existing commitments would be honored, but no public explanation was initially given.

Lively vs. Baldoni & Sarowitz

The legal troubles began in December 2024, when Blake Lively filed a lawsuit alleging sexual harassment by Justin Baldoni during the filming of “It Ends with Us” and accused Sarowitz of funding a retaliatory smear campaign. Both Baldoni and Sarowitz denied the allegations, and a defamation countersuit was dismissed in June 2025. The threats against Sarowitz’s family referenced these legal battles, adding a layer of personal risk to the already intense public scrutiny and making the situation even more volatile.

The foundation’s impact:

Since its launch in 2021, the Wayfarer Foundation made a significant impact in the nonprofit sector. In its first year, it awarded $9.5 million in grants to 49 organizations, focusing on social justice and marginalized groups. The following year, it distributed $9.6 million to 107 grantees, with a strong emphasis on gender equality and racial justice. By 2023, the foundation’s grantmaking peaked at $19 million, supporting 153 organizations—78% of which were BIPOC-led. In total, the foundation gave out nearly $60 million to over 200 organizations, providing multi-year, flexible funding. As of 2022, the foundation’s assets stood at $89.6 million, with Sarowitz contributing approximately $160 million of his own fortune.

Sarowitz explained that his decision to close the foundation was driven by a desire for privacy and safety. He opted to shift his giving to a donor-advised fund (DAF), which allows for greater anonymity and less public disclosure. “DAFs can be more flexible and allow us to move more money with fewer resources,” Sarowitz told Forbes. The abrupt closure left many nonprofits in a difficult position, with some organizations in the midst of renewal talks suddenly facing uncertainty about future support.

The closure of the Wayfarer Foundation has had a profound impact on the nonprofit community. Christopher LeMark, CEO of Coffee, Hip Hop & Health, expressed his shock, saying, “I was shocked when I heard the news. It’s hard to put into words how much they were doing for us.” Isha Miller, Executive Director of Chocolate Milk, shared her concerns: “We’d just started the conversation for renewed funding. Now, everything is up in the air.” Mary Carl, Executive Director of Miracle Messages, highlighted the broader implications, stating, “Wayfarer was a model for effective philanthropy. Its closure is a huge blow to small nonprofits.”