Samwise Nonprofits and Charities Newsletter
Thursday, April 23, 2026
Flipcause Bankruptcy Leaves Spokane-Area Nonprofits Without $175,000 in Donations
Ten nonprofit organizations in the Spokane and North Idaho area are cutting services after the collapse of fundraising platform Flipcause, which filed for Chapter 11 bankruptcy in December 2025. The organizations are collectively owed more than $175,000 in donations they are unlikely to recover, according to the Spokesman-Review. Flipcause served more than 3,200 charities nationwide and owed a combined $29 million after Stripe froze $2.2 million in payments and the company failed to maintain adequate reserves. A court-approved sale to Software4Nonprofits for $400,000 in March 2026 leaves creditors with virtually nothing after legal fees. The collapse has renewed calls for stronger state oversight of charitable fundraising platforms.
Sources: The Spokesman-Review
Twenty-Four Attorneys General Demand GoFundMe Remove Unauthorized Charity Pages
A bipartisan coalition of 24 attorneys general has formally demanded GoFundMe prove it removed more than 1.4 million unauthorized donation pages created for charities without their consent. New Jersey Attorney General Jennifer Davenport led the multi-state letter accusing GoFundMe of copying charity content and applying a default 16.5 percent tip that routes money to the company rather than the named charity. Alaska separately sued GoFundMe and five other platforms—PayPal Giving Fund, Charity Navigator, JustGiving, Pledgeling Technologies, and Network for Good—under state charitable solicitation law. Three nonprofits filed a federal lawsuit in March 2026 alleging reputational harm. The Chronicle of Philanthropy called the legal actions a warning shot for the fundraising platform industry.
Sources: Chronicle of Philanthropy
DOGE Has Terminated Nearly 16,000 Federal Grants Totaling $49 Billion
The Department of Government Efficiency has driven the termination of nearly 16,000 federal grants totaling approximately $49 billion, with nonprofit service providers among the hardest-hit recipients. The Urban Institute found one in three nonprofit service providers experienced a government funding disruption in early 2025, with 21 percent losing a grant or contract entirely. The National Endowment for the Humanities saw 97 percent of active grants terminated after DOGE used ChatGPT to flag them for DEI content. AmeriCorps lost nearly $400 million in active grants, eliminating more than 32,000 service positions. Multiple federal judges have issued orders blocking or reversing specific terminations, and legal challenges continue across the country.
Sources: GCN
American Water Charitable Foundation Awards $1.5 Million to 86 Nonprofits Across 13 States
The American Water Charitable Foundation awarded $1,502,392 to 86 nonprofit organizations across 13 states on April 22 through its 2026 Water and Environment Grant Program. The grants support communities served by American Water utility service areas, focusing on water education, conservation, and environmental stewardship. Individual grants fund local nonprofits addressing watershed protection, STEM education related to water access, and environmental awareness in underserved communities. The 2026 round continues the foundation’s investment in organizations addressing clean water access and sustainability at the community level. American Water operates regulated utilities across 14 states, making the grant program a direct extension of its community investment in the regions it serves.
Sources: American Water Newsroom
Planned Parenthood President Navigates Federal Defunding and 53 Health Center Closures
Alexis McGill Johnson, only the second Black woman to lead Planned Parenthood in its more than 100-year history, is navigating one of the organization’s most turbulent periods. Since taking the helm in 2020, the U.S. Supreme Court ended federal abortion protections, and the Trump administration’s second term cut funding representing roughly one-third of the organization’s budget. Since early 2025, 53 health centers have closed. In a Nonprofit Quarterly interview published April 22, McGill Johnson described recalibrating the organization’s advocacy strategy as abortion’s political urgency fades among mainstream funders—even as demand for reproductive health services among low-income patients continues to grow.
Sources: Nonprofit Quarterly
Nonprofits Build Parallel Institutions to Preserve Public Services Lost to Federal Cuts
Civil society organizations across the United States are building parallel institutions to preserve public services and democratic functions disrupted by federal policy changes, Nonprofit Quarterly reported April 21. When the Centers for Disease Control’s main website removed public health data, volunteers launched RestoredCDC.org to archive thousands of datasets. Researchers at universities and community colleges have mirrored federal scientific databases threatened with deletion. The article examines how nonprofits and community organizations have stepped in as structural alternatives to government functions—while noting that many of these organizations are themselves facing significant funding shortfalls as federal support diminishes and the pace of service-demand increases.
Sources: Nonprofit Quarterly
Senate Majority Leader Stalls SAVE America Act, Preserving Nonprofit Voter Registration Drives
Senate Majority Leader John Thune declined as of April 20 to bring the SAVE America Act to a Senate vote, effectively stalling legislation that would have required documentary proof of citizenship—such as a passport or birth certificate—to register to vote. The nonprofit sector had actively opposed the bill, with Independent Sector and Nonprofit VOTE warning that it would end nonpartisan third-party voter registration drives run by charities. The Brennan Center estimated more than 20 million citizens lack the required documents. The Senate’s inaction follows bipartisan resistance and sustained advocacy from civil society groups. Nonprofit voter registration programs in at-risk communities remain active pending any future legislative action.
Sources: Independent Sector
Private Foundation Grantmaking Rose 4.2 Percent in 2024 With Shift Toward Operating Support
Private foundations increased grantmaking by 4.2 percent year-over-year in 2024, and more than half of early 2025 grants were designated for general operating support—a sign that funders are prioritizing nonprofit resilience over project-specific funding, according to Foundation Source’s 2026 Giving Outlook. The report projects continued charitable giving growth in 2026 despite headwinds from federal funding cuts and anticipated tax code changes. Resilient donor behavior and a shift toward strategic, values-aligned philanthropy are cited as key drivers. The outlook follows a period of disruption in which federal grant reductions and higher operational costs have increased pressure on private foundations to close gaps previously covered by government programs.
Sources: Foundation Source
Curated by JD · samwise.agency
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