Samwise Nonprofits and Charities Newsletter
Monday, April 27, 2026
Trump Administration Terminates $400 Million in AmeriCorps Grants, Ending 1,000 Programs
The Trump administration on April 25 terminated nearly $400 million in AmeriCorps grant funding, cutting more than 40 percent of the agency’s active grants and immediately shutting down more than 1,000 local service programs. Over 32,000 AmeriCorps members and AmeriCorps Seniors volunteers received stop-work orders, many mid-program. America’s Service Commissions, the nonprofit association representing state service commissions, condemned the cuts as devastating to communities that rely on member labor for food access, education, public health, and disaster response. Programs ranging from food banks to afterschool tutoring and rural conservation were ordered to stand down. Legal advocates say the cuts likely violate federal appropriations law, and litigation is expected.
Sources: KUOW
Justice Department Charges Southern Poverty Law Center With Defrauding Donors; Legal Experts Question Case
Federal prosecutors on April 22 indicted the Southern Poverty Law Center on charges of defrauding donors by allegedly using charitable donations to fund activities the organization publicly opposed. The SPLC, a prominent civil rights organization based in Montgomery, Alabama, denied the allegations. Analysis published April 24 by Beth Gazley in The Chronicle of Philanthropy concluded the indictment may lack evidence of criminal wrongdoing, noting no federal funding is involved and no donor complaints have been cited—an unusual basis for a criminal fraud prosecution. Legal experts warn the case could set a chilling precedent for advocacy organizations that publicly take positions while receiving charitable contributions.
Sources: The Chronicle of Philanthropy
Trump Administration Appeals Federal Funding Freeze Injunction; D.C. Circuit Decision Pending
The Trump administration on April 24 filed an appeal with the U.S. Court of Appeals for the D.C. Circuit, challenging a federal district court preliminary injunction that has blocked the administration’s attempt to freeze all federal grant and loan disbursements. The lawsuit, National Council of Nonprofits et al. v. Office of Management and Budget, was filed by Democracy Forward on behalf of the National Council of Nonprofits, the American Public Health Association, Main Street Alliance, and SAGE. The February 2025 injunction has shielded thousands of nonprofit grantees from abrupt funding cutoffs. A D.C. Circuit ruling is expected in the coming weeks and could significantly alter the federal funding landscape for the sector.
Sources: National Council of Nonprofits
New York Legislators Push for State Grant Program to Fund Nonprofit News Outlets
Bills introduced in both chambers of the New York State Legislature would create a grant program providing public funding to nonprofit news organizations. Publishers of 16 digital nonprofit news outlets have endorsed the proposal, arguing in a joint statement that nonprofit newsrooms fill critical gaps left by downsizing commercial news operations and deserve comparable treatment to other charitable activities the state supports. Advocates are lobbying legislative leaders and the governor to include funding in the 2026–27 state budget. The proposal comes as local news deserts continue to expand across New York and as traditional news organizations cut staff at record rates, leaving nonprofit outlets as the primary source of accountability journalism in many communities.
Sources: Investigative Post
Nonprofits and Service Leaders Convene in Washington to Mark 250 Years of American Volunteerism
Thousands of students, educators, and nonprofit leaders gathered in Washington, D.C. on April 24 for “250 & Beyond,” a national convening co-hosted by Independent Sector and the National Museum and Center for Service to celebrate volunteer service as a defining element of American identity. Timed to National Volunteer Month and the United States Semiquincentennial, the hybrid event featured panels on the history and future of American service. Independent Sector estimates the value of a volunteer hour at $36.14—a 3.9 percent increase over the prior year. Organizers called on policymakers to protect national service programs, a message carrying particular weight as AmeriCorps grant terminations took effect the following day.
For-Profit Fundraising Platforms Pose Systemic Risk to Nonprofit Financial Security, NPQ Finds
A Nonprofit Quarterly investigation details how for-profit intermediaries handling charitable fundraising concentrate financial power and data control away from nonprofits, creating risks that the Flipcause bankruptcy has made concrete. Flipcause, which filed for Chapter 11 bankruptcy in December 2025, owes nearly $29 million to more than 3,200 nonprofits nationwide after routing all donations through a single company account. The platform’s March 2026 auction netted only $400,000—far short of the $29 million owed. NPQ argues that light regulation of fundraising platforms in most states, combined with single-merchant-of-record structures, leaves nonprofits with little recourse when platforms fail, and calls for stronger state and federal oversight of charitable fundraising intermediaries.
Sources: Nonprofit Quarterly
GreenLight Fund’s Two-Decade Model Shows How National Nonprofits Can Scale Without Sidelining Local Groups
A Chronicle of Philanthropy examination of the GreenLight Fund profiles the organization’s 20-year approach to scaling proven anti-poverty nonprofits into new cities while preserving community ownership. GreenLight selects national organizations with evidence-based track records, then builds relationships with local funders and stakeholders before making placements—what the piece describes as a disciplined model for scaling without displacing local organizations. The model has drawn renewed attention as federal program cuts push communities to seek private sector alternatives at scale. The story offers a practical framework as philanthropists and sector leaders debate how national organizations can effectively address local problems without undermining community-led solutions.
Sources: The Chronicle of Philanthropy
Curated by JD · samwise.agency
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