Samwise Nonprofits and Charities Newsletter
Wednesday, July 15, 2026
IRS Moves to Codify Racial Discrimination Ban and Johnson Amendment Rules for Tax-Exempt Private Schools
The Internal Revenue Service has proposed regulations addressing how Section 501(c)(3) tax-exempt status applies to private schools, according to a report in The NonProfit Times. The proposed guidance—filed with the Office of Management and Budget under Identifier 1545-BS05—focuses on two issues: applying the fundamental public policy prohibition against racial discrimination in determining eligibility for tax-exempt status, and providing guidance on the Johnson Amendment’s statutory bar on partisan political campaign activity by charitable organizations. The proposed changes have not yet been made public, and no implementation timetable has been announced. Both items were included in the Treasury Department’s 2025–2026 Priority Guidance Plan.
Sources: The NonProfit Times Share ↗ ✉︎ Email 💬 Text
Corporate Funding to Equity-Focused Nonprofits Falls from 62% to 36%, Benevity Survey Finds
Companies are pulling back from equity-focused philanthropy in 2026 even as overall corporate giving rises, according to Benevity’s sixth annual State of Corporate Purpose report. The share of companies that said they would increase funding for diverse-led, equity-focused nonprofits fell from 62 percent in 2024 to 36 percent in 2026. Funding commitments for international development dropped from 56 to 32 percent, and for crisis response from 58 to 31 percent. Nearly two-thirds of companies changed which nonprofits or programs they funded. Nearly three-quarters of corporate impact leaders said the political and regulatory environment directly influenced their strategy. Corporate giving overall rose eight percentage points year-over-year.
Sources: The NonProfit Times Share ↗ ✉︎ Email 💬 Text
Foundations Urged to Adopt Outcomes-Based Funding as Federal Cuts Reshape Sector
Foundations face one of the most urgent periods in their history as federal budget cuts, inequality, climate change, and artificial intelligence disruption mount simultaneously, according to an opinion piece published July 14 in the Chronicle of Philanthropy. The author argues that the conventional approach of unrestricted grants is insufficient to match the scale of current challenges, and proposes a model combining initial unrestricted funding—giving nonprofits room to develop creative approaches—with outcomes-based awards that reward documented results. Many funders are already increasing annual grant-making budgets, the piece notes, but the structural question of how grants are designed, not just how large, remains underaddressed.
Sources: Chronicle of Philanthropy Share ↗ ✉︎ Email 💬 Text
OMB Grant Overhaul Draws More Than 40,000 Comments as Nonprofit Sector Pushes Back
The public comment period on the federal government’s proposed overhaul of grant rules closed July 13 after drawing more than 40,000 submissions, the National Council of Nonprofits reported. The Office of Management and Budget had proposed sweeping revisions to the Uniform Guidance—the framework governing federal grants and cooperative agreements—on May 29, 2026. The proposal would grant administrators unprecedented discretion to withhold, suspend, or terminate grants, and would prohibit federal awards from funding programs related to diversity, equity, and inclusion. The proposed effective date is October 1, 2026. Nonprofits, state and local governments, and higher education institutions were among the most active commenters.
Sources: National Council of Nonprofits Share ↗ ✉︎ Email 💬 Text
Community Disaster Fatigue Rises as Repeated Floods Leave Nonprofits Stretched Thin
Nonprofit organizations and emergency management agencies are confronting a growing phenomenon known as community disaster fatigue as repeated flooding returns to the same towns before residents can fully recover, according to a new analysis in Nonprofit Quarterly. Flash floods swept across communities from Texas to Kentucky and through the Mid-Atlantic and Northeast during June and early July 2026. Cocke County, Tennessee, still recovering from Hurricane Helene’s 2024 floodwaters, faced new flooding in June. Tioga County, Pennsylvania, saw early-July flooding in communities hit by Hurricane Debby two years prior. Community disaster fatigue is defined as the deterioration of a community’s ability to function when repeated disasters overwhelm available resources.
Sources: Nonprofit Quarterly Share ↗ ✉︎ Email 💬 Text
Curated by JD · samwise.agency