Samwise Nonprofits and Charities Newsletter
Thursday, June 4, 2026
Federal Court Hears PSLF Nonprofit Lawsuit as July 1 Rule Effective Date Approaches
A coalition of nonprofits, cities, and labor unions argued before the U.S. District Court for the District of Massachusetts on June 3 that a Trump administration rule overhauling Public Service Loan Forgiveness is unconstitutional. The rule, finalized in October 2025 and set to take effect July 1, 2026, grants the Secretary of Education authority to disqualify employers with a “substantial illegal purpose,” including organizations serving undocumented immigrants or promoting diversity, equity, and inclusion. The National Council of Nonprofits co-filed the suit, arguing the rule rewrites the bipartisan Higher Education Act and violates First Amendment protections. No ruling has been issued.
Sources: National Council of Nonprofits
New CEP Study Finds Sector in Unprecedented Crisis as Federal Cuts Hit Demand Spike
A new study by the Center for Effective Philanthropy, released June 2, reveals nonprofits face an unprecedented crisis driven by federal funding freezes, DOGE grant terminations, and threats to tax-exempt status since January 2025. The report found 73 percent of nonprofits report increased demand for services at COVID-19-era levels, while funding from government and foundations has simultaneously declined. Thirty percent of nonprofits have already reduced staff size, and 66 percent of leaders express deep concern about financial stability. The sector cut nearly 29,000 jobs in 2025, and experts estimate 2.8 million more jobs are at risk if government funding continues to erode.
Sources: Nonprofit Quarterly
Immigrant-Serving Nonprofits Struggle as Federal Agencies Become Deportation Tools
Nonprofit organizations serving immigrant communities face an expanded enforcement landscape as the Trump administration redirected agencies including the IRS, HUD, Medicaid, and the Department of Education to support deportation efforts, according to a June 2 Nonprofit Quarterly analysis. The administration also rescinded sanctuary space protections for frontline community organizations. Leaders from HIAS and Church World Service told NPQ clients now avoid hospitals and food pantries out of fear of enforcement. A 2025 KFF/New York Times survey found 51 percent of immigrant adults worried health providers might share their information with ICE. The Protecting Immigrant Families Coalition reported 83 percent of Americans support preserving immigrants’ access to health and social services.
Sources: Nonprofit Quarterly
Trump Budget Would Zero Out $1.3 Billion Afterschool Program, States Seek Alternatives
The Trump administration’s fiscal year 2027 budget would eliminate the 21st Century Community Learning Centers grant—the sole dedicated federal afterschool funding stream at $1.329 billion—replacing it with a $2 billion MEGA block grant with minimal requirements, Nonprofit Quarterly reported June 1. Research by the Afterschool Alliance shows 77 percent of the 29.6 million children whose parents seek afterschool slots cannot access them. Republican senators Susan Collins and Shelley Moore Capito pushed back in April hearings. A bipartisan coalition introduced the Afterschool for All Act to grow the program to $10 billion annually. Vermont and Alaska are using cannabis tax revenue to build independent state afterschool funding streams.
Sources: Nonprofit Quarterly
Collapse of Small-Dollar Donations Threatens the Future of Social Innovation
The number of Americans giving to charity has declined for five consecutive years, dropping 4.5 percent in 2024, with charitable giving households falling from two-thirds of American households in 2000 to about half today, according to a Stanford Social Innovation Review analysis. Just 3 percent of donors now provide 78 percent of all charitable dollars, representing what SSIR calls an existential threat to social innovation. The steepest declines are in donations under $100, and donor retention has fallen to 31.9 percent as of 2025. Congress enacted a permanent $1,000 charitable deduction for nonitemizers in 2026, though SSIR notes the cap is unlikely to meaningfully expand the donor base.
Sources: Stanford Social Innovation Review
Analysis: Legacy Foundation Overhead Ranges from 1 Cent to 81 Cents Per Dollar Granted
A new Inside Philanthropy analysis finds America’s top 40 legacy foundations spent an average of nearly 19 cents in administrative expenses for every dollar they granted in 2024, but the spread is dramatic. The Lilly Endowment, America’s largest foundation, spent less than 1 cent per grant dollar—while the Annie E. Casey Foundation spent 81 cents and the Rockefeller Foundation spent $386,145 in expenses per grant, roughly seven times the sector average of $52,469. The Ford Foundation spent 25.3 cents per dollar granted, compared to the William and Flora Hewlett Foundation’s 10.4 cents. The piece is based on 2024 financial filings from the 40 largest long-established U.S. foundations.
Sources: Inside Philanthropy
MissionWired Acquires BWF to Create Integrated Nonprofit Fundraising and Technology Firm
MissionWired, a nonprofit fundraising firm formerly known as CCAH, announced June 1 the acquisition of BWF, a leading provider of capital campaign consulting, analytics, and technology transformation for higher education, healthcare, and nonprofit organizations. Under the MissionWired umbrella, BWF will join Zuri Group to form BWF Zuri, offering end-to-end fundraising intelligence and systems integration. The deal reflects growing consolidation in the nonprofit consulting and technology sector, as organizations seek integrated platforms to manage donor acquisition, retention, and digital giving. The acquisition comes as nonprofits face declining donor numbers and reduced government funding, creating demand for more efficient and data-driven fundraising strategies. NonProfit PRO reported the announcement June 1.
Sources: NonProfit PRO
Curated by JD · samwise.agency
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