Samwise Nonprofits and Charities Newsletter
Monday, April 13, 2026
Charitable Tax Changes Under the “One Big Beautiful Bill” Take Effect in 2026
The One Big Beautiful Bill Act has reshaped charitable giving incentives heading into 2026. For the first time, standard deduction filers — now roughly 86 percent of all taxpayers — may deduct up to $1,000 in cash donations ($2,000 for joint filers). However, itemizers now face a 0.5 percent AGI floor before any deduction is allowed, and high earners in the 37 percent bracket are capped at a 35 percent deduction benefit. Giving USA and Harvard’s Social Impact Review warn the net effect on major donors is likely negative, urging nonprofits to adapt fundraising strategies now.
Sources: Tax Foundation · Giving USA · Harvard ALI Social Impact Review
Federal Grant Terminations Continue to Batter Nonprofit Sector
The Department of Government Efficiency has driven the cancellation of nearly 16,000 federal grants totaling approximately $49 billion, with nonprofits bearing the brunt. Among the hardest hit: AmeriCorps, where the administration terminated roughly $400 million in grants supporting more than 1,000 programs and 32,000 service members. A federal judge subsequently ordered funding restored for states that filed suit, with grantees required to submit revised spending plans by April 2026. The Urban Institute reported that one in three nonprofit service providers experienced at least one government funding disruption in the first half of 2025, with 21 percent losing grants outright.
Sources: Granted AI · Urban Institute · Star Tribune — AmeriCorps ruling
Nonprofits Scramble for Creative Revenue Solutions Amid Funding Uncertainty
With federal dollars shrinking and political headwinds intensifying, nonprofits are pursuing aggressive revenue diversification in 2026. Organizations are expanding income streams to include online giving platforms, merchandise, paid training, membership models, and digital events. The NH Charitable Foundation pulled $3 million from operating reserves to boost grantmaking, including $2 million in immediate unrestricted grants to organizations facing cuts. Meanwhile, the Nonprofit Finance Fund’s 2026 Trends report highlights that organizations with diversified revenue entering this year are significantly better positioned to absorb disruptions — a lesson many are now racing to apply.
Sources: NonProfit Quarterly · Nonprofit Finance Fund — 2026 Trends
AI in Fundraising Shows Promise and Peril in 2026
The Chronicle of Philanthropy’s 2026 fundraising outlook finds that artificial intelligence is moving from experimentation to daily operations — but outcomes are mixed. Grants teams are using AI to screen applications in minutes rather than weeks: the GitLab Foundation reportedly analyzed 800 grant applications in 30 minutes using AI tools. However, email response rates from AI-assisted outreach remain below one percent, and only 19 percent of first-time donors give again, raising concerns about donor relationship quality. Development staff burnout is flagged as a compounding risk, alongside environmental concerns as AI data centers are projected to emit as much CO2 as 5 to 10 million cars by 2030.
Sources: Chronicle of Philanthropy · Chronicle — Can AI Make Grant Seeking Easier?
Foundation Giving in 2026: Resilient Donors, Global Health Focus
Foundation Source’s 2026 Giving Outlook reports that resilient private donors are driving philanthropic growth, with the firm having distributed over $1.6 billion in grants to more than 27,000 recipients in 2025. The Chronicle of Philanthropy projects that two or three gifts of $1 billion or more will be announced in 2026. Wealthy donors are increasing their focus on global health and international development, partly in response to reductions in foreign aid worldwide. With a new big-donor playbook encouraging faster, louder giving, the forecast suggests major philanthropy remains active even as government support contracts.
Sources: Foundation Source — 2026 Giving Outlook · Chronicle of Philanthropy — Forecasts for Foundation Giving · Chronicle of Philanthropy — Major Donor Playbook
Black Philanthropy Circle Opens 2026 Grant Cycle for Black-Led Organizations
The Black Philanthropy Circle opened its 2026 grant application portal this month, targeting organizations that are either Black-led or deeply rooted in serving African-American communities in Baltimore. The fund advances charitable efforts at the intersection of racial equity and community development. The announcement follows a sobering Candid and ABFE analysis that found financial gains for many Black-led nonprofits during the 2020 to 2022 surge were temporary — with funding levels often reverting after the racial justice funding wave subsided. The new cycle aims to provide more sustained, multi-year support to organizations historically passed over during cyclical funding trends.
Sources: Opportunities for Youth · Chronicle of Philanthropy — 5 Trends Shaping Fundraising
Sector Burnout Reaches Crisis Point as Nonprofits Face Double Crunch
United Way Worldwide warns that nonprofits are experiencing a double crunch — severe federal funding cuts compounded by growing community service demands at a time of reduced organizational capacity. The Center for Effective Philanthropy found that 95 percent of nonprofit leaders cite burnout as a major concern, while staff turnover among development professionals remains chronically high. A tight job market has not kept fundraisers in their roles: quiet resignation and productivity slumps are increasingly replacing outright departures. Sector advocates are calling on funders to invest in organizational health and operational capacity, not just program delivery, as a prerequisite for long-term impact.
Sources: United Way Worldwide · NonProfit PRO — 7 Trends Shaping the Sector
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