Samwise Nonprofits and Charities Newsletter
Tuesday, July 14, 2026
IRS Proposes Rules Linking 501(c)(3) Status to Anti-Discrimination Standards
The IRS has proposed regulations (RIN 1545-BS05) that would amend Section 501(c)(3) to clarify that schools discriminating on the basis of race do not operate exclusively for charitable purposes and therefore do not qualify for tax-exempt status. The proposal, still under OMB review with no announced timetable, draws on the 1983 Supreme Court ruling in Bob Jones University v. United States and incorporates 2023’s Students for Fair Admissions v. Harvard. Treasury’s 2025–2026 Priority Guidance Plan also promises guidance on the Johnson Amendment’s ban on political campaign activity by houses of worship, subject of a Fifth Circuit appeal now pending by the National Religious Broadcasters.
Sources: The NonProfit Times Share ↗ ✉︎ Email 💬 Text
Corporate Philanthropic Priorities Shifted Sharply Under Political Pressure in 2026
Benevity’s State of Corporate Purpose 2026 survey of 165 nonprofit organizations finds nearly two-thirds of companies changed which nonprofits or programs they funded over the past year. Funding commitments to diverse-led, equity-focused organizations fell from 62% in 2024 to 36% in 2026; international development dropped from 56% to 32%; and crisis response from 58% to 31%. Nearly three-quarters of corporate impact leaders say the political and regulatory environment directly influenced their strategy. Reporting burdens on nonprofits also intensified: only 10% of companies plan to reduce requirements, compared with 70% that planned to do so last year.
Sources: The NonProfit Times Share ↗ ✉︎ Email 💬 Text
Experienced Gen Z Donors Less Responsive to Overhead Transparency and Emotional Imagery Appeals
New research from Georgia State University and the University of Texas at Dallas tested how overhead transparency and emotional imagery interact in fundraising appeals for Save the Children. In a nationally representative adult sample, participants chose the combined appeal over a control at nearly 3-to-1. In a Gen Z laboratory sample, that ratio narrowed to 2-to-1—driven almost entirely by young donors who already had experience giving to international relief organizations. Researchers Jonathan Oxley and Elizabeth A. M. Searing caution that organizations investing in Gen Z donor cultivation may need to test whether the standard fundraising playbook still delivers expected results for this cohort.
Sources: Association of Fundraising Professionals Share ↗ ✉︎ Email 💬 Text
AFP Member Spotlight: Scholarship Coordinator Steps Into Foundation Leadership After Back-to-Back Vacancies
Andrew Kapelewski, director of foundation development at Western Dakota Technical College, joined the Association of Fundraising Professionals in November 2024 while navigating simultaneous leadership vacancies: the foundation’s director and assistant director had both departed, and the college president died unexpectedly while Kapelewski was on paternity leave. In a member spotlight interview with AFP, Kapelewski describes building an operations handbook capturing the “what, when, by who, and why” of foundation functions, and credits AFP’s Fundamentals of Fundraising course and its member network with equipping him for the role. He is preparing to sit the CFRE certification exam in the next available testing window.
Sources: Association of Fundraising Professionals Share ↗ ✉︎ Email 💬 Text
National Council of Nonprofits and Democracy Forward Urge OMB to Withdraw Federal Grantmaking Overhaul
The National Council of Nonprofits, with support from Democracy Forward, submitted formal comments to the Office of Management and Budget calling on it to withdraw a proposed rewrite of the Uniform Guidance governing more than $1 trillion annually in federal grants and cooperative agreements. The comments argue OMB is claiming rulemaking authority Congress never granted, that participating agencies failed to conduct required reasoned decisionmaking, and that the rule would allow agencies to terminate or suspend grants mid-project for an undefined “national interest” without hearing or appeal. NCN president and CEO Diane Yentel said the proposal “would replace stability with unchecked political discretion.”
Sources: National Council of Nonprofits Share ↗ ✉︎ Email 💬 Text
NCN Report Calls for 25% Upfront Funding and 15% Indirect Cost Rate in Government Contracts
The National Council of Nonprofits released an issue brief, Opportunity for Reform: Strengthening the Nonprofit Sector’s Ability to Deliver Essential Services Through Grants and Contracts, calling on governments to modernize grantmaking practices it says force nonprofits to subsidize government programs with their own resources. An estimated 30% of U.S. nonprofits rely on government grants and contracts. Key recommendations include providing at least 25% of grant funding upfront, reimbursing indirect costs at a minimum 15% rate (or the federally negotiated rate if higher), and modernizing application technology. NCN president Diane Yentel said outdated systems divert nonprofit staff from service delivery.
Sources: National Council of Nonprofits Share ↗ ✉︎ Email 💬 Text
Curated by JD · samwise.agency
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