Samwise Nonprofits and Charities Newsletter
Monday, May 4, 2026
Fidelity and Vanguard Halt Donor-Advised Fund Grants to SPLC After Federal Indictment
Fidelity Charitable and Vanguard Charitable, two of the largest donor-advised fund sponsors in the United States, blocked account holders from directing grants to the Southern Poverty Law Center following the organization’s April 21 federal indictment on 11 counts of wire fraud, bank fraud, and conspiracy to commit money laundering. Prosecutors allege the SPLC secretly funneled more than $3 million in donated funds to extremist group informants between 2014 and 2023, concealing payments through fictitious company accounts. The SPLC denies wrongdoing, arguing its informant program was lawful and protected lives. The San Francisco Foundation announced on April 30 it would continue permitting donors to direct grants to the SPLC, citing due process concerns over pre-conviction penalties.
Sources: San Francisco Foundation
IRS Moves to Rework Form 990 Requiring Deeper Disclosure by Nonprofits
The U.S. Department of the Treasury announced on April 30 that the Internal Revenue Service plans to revise Form 990—the annual disclosure document filed by tax-exempt organizations—to require more detailed reporting on government contracts, government grants, and fiscal sponsorship arrangements. Treasury Secretary Scott Bessent said the changes aim to detect misconduct and reduce fraud in the nonprofit sector. The IRS intends to require nonprofits to identify sponsored projects, disclose who controls those funds, and describe how the money is spent—addressing what Treasury describes as “opaque arrangements” that obscure accountability. Proposed regulations will be published for public comment before any changes take formal effect.
Sources: The NonProfit Times
Foundations Urged to Rethink Wealth Deployment as Political Attacks on Philanthropy Mount
Nonprofit Quarterly published an analysis on April 30 arguing that progressive foundations and donor networks must adopt more strategic approaches to wealth deployment as politically motivated attacks on philanthropy intensify. The piece, by movement organizers Rebecca Vilkomerson and Chanelle Gallant, follows a September 2025 executive order directing the Justice Department to investigate the Ford Foundation and Open Society Foundation—prompting more than 180 philanthropies to sign a joint statement condemning political interference. The authors contend that many foundations responded by quietly withdrawing support from grassroots organizations, and argue that movement donors must instead organize wealth with greater urgency and strategic intent rather than protecting existing grantmaking structures.
Sources: Nonprofit Quarterly
Microsoft Launches AI Fellowship Program for Nonprofit Leaders
Microsoft launched the Microsoft Elevate for Changemakers fellowship program, opening applications to nonprofit leaders seeking to build artificial intelligence credentials and peer networks. The program offers role-based training, AI tool access, and capacity-building resources designed to help organizations lead AI adoption aligned with their missions. The initiative is backed by Microsoft’s pledge of more than $5 billion in discounts, donations, and grants to nonprofits and education systems globally over the next year. The company currently partners with nearly one million nonprofits and education systems worldwide. No application deadline was specified in the April 30 announcement, and enrollment details are available at the Microsoft Elevate website.
Sources: The NonProfit Times
VeraData Acquires Avalon Consulting in Fundraising Technology Consolidation
Nonprofit fundraising data and technology firm VeraData Holdings acquired Washington, D.C.-based Avalon Consulting, a direct response fundraising agency with clients spanning health, humanitarian, and cultural sectors. Terms of the deal were not disclosed. The acquisition continues a consolidation strategy by VeraData, which has been backed by private investment firm Beringer Capital since November 2022 and previously acquired Faircom New York and Teal Media—which merged in July 2025. VeraData rebranded as “The Donor Science Company” in January 2024 and now reports more than 400 clients across humanitarian aid, animal welfare, veteran services, and health research. BrightTower served as exclusive financial advisor to VeraData in the transaction.
Sources: The NonProfit Times
Smiley Charity Film Awards Recognize 29 Winners in Global Advocacy Storytelling
The 2026 Smiley Charity Film Awards recognized 29 winners across the United Kingdom and internationally, honoring advocacy films and videos addressing street violence, animal cruelty, and challenges facing modern nursing. Now in its ninth year and powered by the Smiley Movement news platform, the program is recognized by the British Film Institute and listed on IMDb. The 2026 edition used a digital-first format designed to convert viewership directly into donations and advocacy engagement. The People’s Choice Award went to “Alesha Dixon and Roy,” a film examining street violence. Over nine years, the awards have recognized more than 300 organizations across more than 120 countries and distributed $865,000 to impact-driven groups.
Sources: The NonProfit Times
Nonprofit AI Adoption at 92 Percent but Governance Policies Lag Far Behind
Ninety-two percent of nonprofits have adopted AI-enabled tools, yet nearly half—47 percent—report having no AI governance policy, according to the 2026 Nonprofit AI Adoption Report. That gap creates escalating cybersecurity risks, including AI-assisted phishing, unvetted third-party integrations, and sensitive donor data exposure. Scott Beale, writing in The NonProfit Times, identifies five priority steps for boards and executives: mapping AI data flows, establishing an acceptable-use policy, vetting vendor AI practices, training staff on prompt discipline, and designating an internal AI steward. He argues the 92-percent adoption rate alongside a 47-percent governance deficit represents an unusually high-risk profile for a sector entrusted with sensitive donor and beneficiary information.
Sources: The NonProfit Times
Curated by JD · samwise.agency