Latest news with #WayfarerFoundation
Time of India
04-07-2025
- Entertainment
- Time of India
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. Live Events 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.' Economic Times WhatsApp channel )
Forbes
04-07-2025
- Entertainment
- Forbes
How The Blake Lively Saga Led A Billionaire To Shut Down His Foundation
A ll appeared normal at the Wayfarer Foundation in the weeks prior to its announcement that it was shutting down. The team was actively recruiting a grant manager and summer interns. A new manager of growth and culture started in April. Employees were planning events with Wayfarer's nonprofit grantees. Even its billionaire founder, Steve Sarowitz, was talking about a bright future, emailing grantees on April 9: 'Though we're living in a time of profound change, the Foundation remains committed to our mission [...]. Our work is only beginning and we have much to do together.' Then, around 5:30 a.m. on Monday, April 28, Sarowitz awoke to a dwindling fire in a trash can in the driveway of his home in a Chicago suburb; he put it out with two water bottles, according to a fire department report. Later that day, his wife received a text from an unknown sender claiming to have helped set the fire. The person threatened to kidnap the couple's daughter, a senior at Northwestern University, writing that she wouldn't 'make graduation' unless they forked over $80,000, a Lake County State's Attorney's Office spokesperson confirms. 'If you guys are prepared to spend a hundred million to ruin the lives of Ms. [Blake] Lively and her family, we are sure you can spare a few for your daughter,' the text said, referencing a claim in actress Blake Lively's lawsuit against Sarowitz, his partner Jason Baldoni and the film studio they cofounded, Wayfarer Studios. The threats kept coming and became increasingly violent, per an indictment filed with the 19th Judicial Circuit Court of Illinois. By that Friday, Sarowitz had decided to shut down his foundation. 'Upon unanimous decision of the board of directors, today we will begin the process of sunsetting,' he wrote on Facebook, Instagram and LinkedIn, hours after informing staff. In an email to grantees, he added that the foundation would honor existing grants, but provided no specific explanation for the closure: 'We have determined that this decision is necessary to ensure the long-term sustainability and impact of our charitable mission.' 'I was shocked when I heard the news,' says Christopher LeMark, founder and CEO of Coffee, Hip Hop & Mental Health, one of the nonprofits Wayfarer had been funding. 'It's hard to even put on paper how much they were doing for us.' 'We decided that private giving was a better way to go forward,' Sarowitz tells Forbes , explaining that he will start donating through a donor-advised fund instead. DAFs are increasingly popular philanthropy vehicles for high-net-worth individuals, in part because they do not require filing public financial reports. He adds: 'Foundations can be slow and bureaucratic. This gives us a lot more flexibility and allows us to give more money with fewer resources.' DAFs also allow the ultra wealthy to give in near secrecy. Justin Baldoni and Blake Lively captured in a scene from their movie "It Ends with Us," in which Baldoni plays an abusive husband. The movie came out in August 2024. Four months later Lively sued Baldoni, Sarowitz and Wayfarer Studios. Jose Perez/Bauer-Griffin/There's ample reason for Sarowitz to want privacy at the moment. In December, Blake Lively sued him, Baldoni and Wayfarer Studios. She accused Baldoni of sexually harassing her on the set of their movie It Ends with Us , which he directed, they co-starred in and the studio produced. She alleged that Baldoni then illegally retaliated with a media smear campaign—funded by Sarowitz—when she spoke out about his behavior. He, Sarowitz and the studio have denied the allegations. They countersued Lively for defamation and extortion, claims that a judge dismissed on June 9. The Wayfarer Foundation was widely reported to be Baldoni's organization when the news of its closure broke. According to Forbes reporting, though, it was Sarowitz's entity: He provided the funding, while Baldoni advised on its activities as a board member. Sarowitz contributed some $160 million to the foundation, which doled out nearly $60 million to over 200 nonprofits from its 2021 founding through 2024. (He's contributed another $90 million to a separate charitable family foundation with a separate mission that his wife runs.) Inspired by Sarowitz's Baháʼí faith, the name Wayfarer was meant to evoke traveling the path toward a more unified world. The foundation—which aimed to promote social justice and empower minorities—tried to avoid being associated with the studio's legal drama, which has captured the public's attention like few other Hollywood spectacles in recent years. For instance, it armed staff with language to help differentiate between the two entities. But sharing the now controversial Wayfarer name may have led to its shutdown. 'To me, the purpose of money is to serve humanity. Period,' Sarowitz told Forbes in an interview in Highland Park, Illinois last year discussing his giving, before the controversy erupted. Yet the shuttering of Wayfarer complicates that goal, and may have turned its 150-plus grantees into the latest casualties of the PR circus. Some say their nonprofits will struggle to survive without Wayfarer's backing. 'One thing private foundations can provide is stability and as close as you can get to a long-term commitment to funding,' says Brian Mittendorf, an accounting professor and nonprofit specialist at Ohio State University. 'To suddenly shut down all at once undermines that.' W ell-established private foundations typically sunset over years, not weeks. Several media outlets blamed Wayfarer's shuttering in part on financial difficulties arising from the legal battle. That's not likely the case. While experts say the hefty legal, security and PR expenses could already total $40 million, Sarowitz still has an estimated $2.3 billion fortune, which stems from founding payroll firm Paylocity (market cap: $10.2 billion) decades ago and running it as CEO until 2011. While $1.6 billion of that is tied up in Paylocity shares, Forbes estimates he has another $700 million in cash and other investments—more than enough for him to have funded the foundation's 2025 budget of $40 million for several decades. When asked why he shut down so quickly or if there were specific events that led to his decision, Sarowitz declined to comment on the Lively lawsuit or the personal threats and instead simply said that now was 'as good a time as any.' The day after Wayfarer announced its shutdown, police arrested a suspect in the arson and blackmail incidents: Eduardo Aragon, 26; he has been charged with 13 criminal counts of arson, intimidation and harassment. Illinois does not allow bail at all, and Aragon must remain in custody until the case is resolved, a judge ruled. The next court date is scheduled for July 8. Nevertheless, Sarowitz has remained on high alert. He stationed 24/7 security guards outside his homes as well as the foundation headquarters, according to a source familiar with the deployment. Foundation staff signed NDAs as part of their severance agreements, so none would speak to Forbes on the record. But two former workers who asked not to be identified said that safety concerns were discussed at Wayfarer even before the arson. Several defendants named in Lively's case have said they received death threats in recent months. Safety concerns at many nonprofits have increased since President Trump's inauguration, says Elisha Smith Arrillaga, research VP at the Center for Effective Philanthropy. That's been especially true if their work lies in a controversial area: 'Anything can become a lightning rod.' S arowitz, who is 59, still plans to give away all his money well before he dies. His interest in social justice began early, inspired in part by getting bullied and beaten up for being Jewish while growing up in Homewood, Illinois. In 1997, he founded Paylocity, which took off after he launched one of the first cloud-based payroll systems in 2004. By the time it went public in 2014, Sarowitz had stepped away from day-to-day involvement, though he stayed on as chairman until August and still sits on the board. That IPO turbocharged Sarowitz's wealth and inspired his pivot to philanthropy. Meanwhile, friends teased him for continuing to fly coach, drive a Prius and dress simply. 'I'm not interested in luxury,' he told Forbes last year. Around the time of the IPO, after studying the Bahá'í faith for a few years at the recommendation of a friend, Sarowitz says he had an epiphany, followed by a four-day spiritual transformation while visiting the prophet Bahá'u'lláh's shrine in Israel. His wife promptly sent him to two psychologists. He appeared to be in something like a manic state, constantly elated and sleeping little. Sarowitz formally converted in 2015. 'Baháʼí made the most sense to me. I have a very logical mind,' he told Forbes last year. Baháʼís believe that all faiths are manifestations of the same fundamental religion—and it would be illogical to think that the billions of people who follow Christianity, Islam and Judaism are all mistaken, he argued. Around 2018, Sarowitz met Baldoni, from whom he sought advice for a documentary he was producing on the origins of Baháʼí. Baldoni, who also follows the faith, was already running a small company called Wayfarer Entertainment and a small nonprofit called The Wayfarer Foundation that put on an annual Skid Row Carnival of Love for unhoused residents of L.A. Sarowitz joined the foundation board and worked with Baldoni to transform the film company into a new entity that he would finance, Wayfarer Studios. Since 2020, the studio has helped produce a diverse array of films it deems to have positive messages, like Garfield and Will & Harper . It Ends with Us depicted overcoming spousal abuse. Sarowitz has also created Wayfarer Theater, a cinema outside Chicago that only plays movies that 'uplift the spirit.' For him, that means no gratuitous sex, violence or drug use, and no objectification of women. Movies like The Life of Chuck , Jurassic World Rebirth and Everything's Going to Be Great are currently playing. In 2021, when Baldoni changed his foundation's name to Sarowitz started his own Wayfarer Foundation, which he funded entirely himself. Baldoni, who was a 'key advisor' to Sarowitz's entity, will continue to advise him on new philanthropic efforts, says Sarowitz. The foundation, which was supposed to disburse nearly $40 million this year (up from about $20 million), funded nonprofits that identified as having a spiritual purpose. 'If you only apply material solutions, which we tend to do—we see a person who's starving and give them food; we see a person who's homeless and give them a home—we haven't actually solved the core problem,' he argued. 'And it becomes, in the long run, a band-aid solution.' Wayfarer estimated it was the first significant donor for 15% of grantees. Grantees' annual budgets were usually around $1 million and always less than $5 million, meaning they often relied heavily on Wayfarer, which bequeathed more and smaller awards than was typical for a private foundation of its size. Its 152 recipients in 2023 received an average of $127,804. 'It goes back to the entrepreneurial spirit that Steve has,' the foundation's former executive director, Laura Herrick, told Forbes last year. 'He has seen so often what can happen when somebody invests in a project early on, and the impact that it can make.' Most of Wayfarer's donations were unrestricted—a rarity among private foundations, which often prefer to fund programs rather than salaries or other crucial operational expenses. Grantees gushed to Forbes about the ultra-supportive attitude of the foundation's staff (who regularly sent them care packages and showed up to their events), and Sarowitz himself. They praised the fact that Wayfarer gave not only donations but mentorship, including trainings in everything from communications to fundraising. Wayfarer shut down for good on June 30. By then, nearly all remaining grants had been paid, according to Sarowitz, though a few final sums are going out in the next couple of days. He says he will keep funding many grantees in private, though it's unclear which ones, and to what extent future donations will be commensurate with the old. He also says he is not accepting any new grant solicitations at this time. 'At times, my biggest frustration is feeling like I'm an ATM and not a human being,' he told Forbes last year. Many of those previously funded by Wayfarer who hadn't submitted their renewal applications before the buzzer are scrambling. 'We'd just started the conversation with them to fund us again,' says Takisha Miller, executive director of Chocolate Milk Café, which organizes lactation support for African diaspora families. But she hadn't yet applied. 'So we're not promised anything. Which is why it's unfortunate—like, 'Aw man, one more month…'' Organic Oneness founder Syda Segovia Taylor's renewal application was denied, but Sarowitz has assured her that he will continue to fund her in some way privately. She remembers learning of Wayfarer's closure during a break at her annual board gathering. 'I was like, 'Okay, you guys, our safety net is not as thick or as wide as we thought,'' she says. But like all grantees with whom Forbes spoke, her primary emphasis was gratitude for Wayfarer's support until now. 'I feel like they've prepared me for this moment,' she says, citing guidance she'd received on fundraising and strategizing. 'Now I've just got to stand on my own two feet.' No matter how Sarowitz proceeds as a philanthropist, his decision to step back and go dark has had an impact. 'I looked to them as an example of what a foundation could be,' says Mary Carl, executive director of Miracle Messages, a group helping people experiencing homelessness. 'For that to be taken away from some of the nonprofits that are very small is devastating for their sustainability.' 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Yahoo
26-05-2025
- Entertainment
- Yahoo
Taylor Swift Free From Justin Baldoni Subpoena As Blake Lively Battle Heats Up
It seems Taylor Swift just had her "wildest dreams" come true: lawyers representing Justin Baldoni have dropped their subpoena against her, marking the latest update in his "It Ends With Us" lawsuit against costar Blake Lively. The "Look What You Made Me Do" singer's subpoena made headlines last week after Baldoni's team alleged that the "Gossip Girl" alum's lawyers had threatened to expose personal text messages from the singer in exchange for her public support. On May 22, Baldoni's legal team withdrew its subpoena against the 'Shake It Off' singer. Baldoni's lawyers had filed paperwork seeking information about how involved Swift was in the creation of the film, given speculation that she was involved in everything from script changes to casting. Deadline was the first to report the news, who noted that Swift's team responded to the legal update with 'no comment,' while they had yet to hear back from reps for Baldoni or Wayfarer Studios, who recently closed down their Wayfarer Foundation due to the mounting legal fees in their dueling lawsuits. As The Blast previously reported, Bryan Freedman, Baldoni's attorney, argued in court papers that he had received a tip from a 'source who is highly likely to have reliable information' about Swift's involvement in the film. Freedman claimed that Lively's attorney contacted Swift's attorney and 'demanded that Ms. Swift release a statement of support for Ms. Lively,' as well as "intimating that if Ms. Swift refused to do so, private text messages of a personal nature in Ms. Lively's possession would be released." Freedman argued that 'those communications' would come to light with the subpoena, which has now been withdrawn. Mike Gottlieb, an attorney for Blake Lively, told PEOPLE magazine that Baldoni's allegations were 'categorically false,' adding, 'We unequivocally deny all of these so-called allegations, which are cowardly sourced to supposed anonymous sources, and completely untethered from reality.' He went on to say, 'This is what we have come to expect from the Wayfarer parties' lawyers, who appear to love nothing more than shooting first, without any evidence, and with no care for the people they are harming in the process. We will imminently file motions with the court to hold these attorneys accountable for their misconduct here.' In an August 2024 interview with Gayle King on CBS Mornings, Lively thanked Swift for allowing her to use her song, 'My Tears Ricochet,' in the film's trailer and soundtrack. However, she also took things one step further, and insinuated that Swift's involvement extended just beyond her music. "She was with me throughout this whole process. So I think that, for better or worse, she, you know, experienced the whole thing with me," she said at the time. However, Swift's rep strongly denied the suggestion that the 'Love Story' singer was involved with the film shortly after news of the subpoena broke. "Taylor Swift never set foot on the set of this movie, she was not involved in any casting or creative decisions, she did not score the film, she never saw an edit or made any notes on the film, she did not even see It Ends With Us until weeks after its public release, and was traveling around the globe during 2023 and 2024 headlining the biggest tour in history," the singer's rep said in a statement. "The connection Taylor had to this film was permitting the use of one song, 'My Tears Ricochet,'' the statement continued. "Given that her involvement was licensing a song for the film, which 19 other artists also did, this document subpoena is designed to use Taylor Swift's name to draw public interest by creating tabloid clickbait instead of focusing on the facts of the case." It is unclear where their friendship currently stands. As The Blast previously reported, the "Cruel Summer" singer has reportedly 'halted' their friendship, with a source previously telling PEOPLE magazine, 'Taylor wants no part in this drama.' Other sources have indicated that, while they are still friends, they are "taking some space" as Lively's legal battle continues.
Yahoo
17-05-2025
- Entertainment
- Yahoo
Justin Baldoni's Lawyers Accuse Blake Lively's Lawyers of Extorting Taylor Swift
Days after a subpoena roped Taylor Swift into the legal battle between Blake Lively and Justin Baldoni, the latter's lawyers accused the actress' legal team of attempting to extort a public statement out of the singer. According to a letter filed Wednesday in court by Baldoni's lawyer Bryan Freedman, Lively's lawyer Michael Gottlieb allegedly demanded, via Swift's law firm Venable, 'that Ms. Swift release a statement of support for Ms. Lively, intimating that, if Ms. Swift refused to do so, private text messages of a personal nature' would be released to the public. More from Rolling Stone Taylor Swift Lawyers Fight Justin Baldoni Subpoena in Blake Lively Case Taylor Swift Rep Slams Singer's Subpoena in Blake Lively-Justin Baldoni Legal Battle Justin Baldoni's Wayfarer Foundation Shuts Down Amid Blake Lively Legal Battle Freedman claimed that a rep for Swift 'addressed these inappropriate and apparently extortionate threats,' which reflect an alleged pattern of intimidating and coercing witnesses by Lively's legal team, the letter stated. In response to Friedman's letter, Gottlieb said in a statement to the Hollywood Reporter that the accusations were 'categorically false. 'We unequivocally deny all of these so-called allegations, which are cowardly sourced to supposed anonymous sources, and completely untethered from reality,' Gottlieb continued. 'This is what we have come to expect from the Wayfarer parties' lawyers, who appear to love nothing more than shooting first, without any evidence, and with no care for the people they are harming in the process. We will imminently file motions with the court to hold these attorneys accountable for their misconduct here.' Swift's law firm, Venable, previously called the subpoena an 'abuse of the discovery process,' meant to distract from the case.' 'Venable had nothing to do with the film at issue or any of the claims or defenses asserted in the underlying lawsuit,' wrote the firm in a motion on Monday. 'There is no reason for this subpoena other than to distract from the facts of the case and impose undue burden and expense on a non-party.' Last week, Swift's spokesperson slammed the singer's involvement, telling Rolling Stone that Swift's connection to It Ends With Us was limited to licensing her song 'My Tears Ricochet.' 'Taylor Swift never set foot on the set of this movie, she was not involved in any casting or creative decisions, she did not score the film, she never saw an edit or made any notes on the film,' the spokesperson said. Baldoni has been in a legal battle with Lively since December, when she sued him for alleged sexual harassment and a smear campaign. Baldoni has since denied the allegations and countersued Lively, her husband Ryan Reynolds, and their publicist, alleging civil extortion and defamation. Lively's case will go to trial in March 2026. Best of Rolling Stone The 50 Best 'Saturday Night Live' Characters of All Time Denzel Washington's Movies Ranked, From Worst to Best 70 Greatest Comedies of the 21st Century
Yahoo
15-05-2025
- Entertainment
- Yahoo
Justin Baldoni Makes a Move Amid Blake Lively Legal Battle
Justin Baldoni has decided to shut down his Wayfarer Foundation. The news was announced on May 3 with a lengthy Instagram post. Followers didn't hear the update from Baldoni though, it was founder Steve Sarowitz who revealed it instead. 'Over the past four years, Wayfarer Foundation has supported dozens of grantee partners in fulfilling their missions,' Sarowitz wrote in the caption about the charitable organization founded in 2016. 'I am so incredibly proud of the impact this organization has made and deeply grateful for our staff, board, donors, and partners.' He noted that the "unanimous decision" was made by "the board of directors" and that they are beginning the "process of sunsetting the Foundation." Sarowitz added, "We will honor all of our current grant commitments as we carefully wind down operations over the next several weeks. Although the Wayfarer Foundation is closing, my personal commitment to giving remains strong, and I'm dedicated to making an impact on society through the ongoing mission and work." "We understand that this news may come as a surprise, and we will be actively working over the next several weeks to ensure all matters are concluded with care and attention," the message concluded. There was no reason given for the shutdown, but the closure happened amid Baldoni's lengthy legal battle with former It Ends With Us co-star, Blake Lively. Sarowitz was also named in her lawsuit when she claimed he told an unnamed person at the film's August 2024 premiere that he was "prepared to spend $100 million to ruin the lives of Ms. Lively and her family.' Baldoni has denied all sexual harassment allegations. The director is suing Lively, her husband, Ryan Reynolds, and publicist Leslie Sloane for $400 million, citing "civil extortion, defamation, and invasion of privacy." Baldoni and Lively are scheduled for trial on March 9, 2026.
