Samwise Nonprofits and Charities Newsletter
Thursday, June 18, 2026
OMB Proposes Major Overhaul of Federal Grant Rules Governing Nonprofits
The Office of Management and Budget proposed sweeping changes to the Uniform Guidance governing federal grants to nonprofits, drawing more than 14,800 public comments since the proposal dropped May 29. The revision would grant the administration unprecedented discretion to withhold, suspend, or terminate grants, raising alarm across the sector. The National Council of Nonprofits is urging organizations to submit comments before the July 13 deadline. Museums and other cultural institutions face particular exposure, according to the American Alliance of Museums, which warned member organizations of the risks. Sector advocates say the changes would upend decades of stable grant administration practices.
Sources: Legal Planet
One Big Beautiful Bill Reshapes Charitable Giving Incentives for Donors at Every Level
Congress’s sweeping tax and spending legislation, with key provisions taking effect June 11, fundamentally reshapes the tax incentives driving charitable giving. For the first time, non-itemizers may deduct up to $1,000 (or $2,000 for joint filers) in charitable contributions—but itemizers face a new 0.5% AGI floor, and the deduction is capped at 35% for top earners. Executives earning over $1 million now trigger a 21% excise tax. The Council of Nonprofits projects the package will reduce sector resources by $81 billion over ten years, while Medicaid and food assistance cuts simultaneously drive up demand for nonprofit services.
Sources: Council of Nonprofits
Donor-Advised Funds Deliver 75% Revenue Growth as DAF Share of Philanthropy Climbs
Donor-advised funds are reshaping nonprofit revenue at a remarkable pace, according to a new report from K2D Strategies and Chariot covering 54 nonprofits and $3.3 billion in DAF revenue. Organizations receiving DAF gifts saw 75% median revenue growth between 2022 and 2025, compared to just 12% growth from non-DAF sources. The median DAF gift is now 12 times larger than a non-DAF donation. DAFs have grown from 7% to 11% of total nonprofit revenue during that period. More than 50,000 donors shifted to DAF giving between 2021 and 2025, the report found, signaling a structural transformation in how major philanthropic dollars flow to the sector.
Sources: Candid
PSLF Rule That Could Strip Nonprofit Workers of Loan Forgiveness Takes Effect July 1
A new Department of Education rule takes effect July 1 that allows the federal government to strip Public Service Loan Forgiveness eligibility from employees of nonprofits deemed to have a “substantial illegal purpose.” The rule, finalized last October, would cover organizations whose work involves DEI programs, immigration legal services, gender-affirming care, or protest-related activities. Employees at affected organizations would lose the ability to count future loan payments toward the program’s 120-payment requirement. A coalition led by the National Council of Nonprofits and state attorneys general has challenged the rule in court, but legal proceedings have not blocked its scheduled implementation.
Sources: Independent Sector
CharityWatch Releases Guide to Top-Rated Civil Rights Charities Ahead of Juneteenth
With Juneteenth arriving Friday, CharityWatch has released its guide to top-rated civil rights and racial justice charities for donors seeking to mark the holiday with impact. The watchdog group recommends organizations including the ACLU Foundation, Center for Constitutional Rights, National Urban League (National Office), Electronic Frontier Foundation, Fortune Society, and Institute for Justice—all earning high marks for financial efficiency and transparency. CharityWatch updated its guide on June 16 to reflect the latest ratings across its Black American and Civil Rights & Social Justice categories. The timing offers donors a vetted list as Juneteenth grows into one of the year’s most significant giving occasions.
Sources: CharityWatch
Federal Funding Crisis Deepens as Nonprofit Sector Absorbs $425 Billion in Cuts
The nonprofit sector is absorbing a multi-front financial crisis, with more than $425 billion in federal funds canceled or frozen since January 2025, according to the National Council of Nonprofits. A recent NCN survey found 66% of nonprofits now have concerns about financial stability, 34% report reduced federal funding, and 29% report cuts from state and local government. Payment delays compound the strain, creating growing wait lists for essential services including food assistance, housing support, and crisis intervention. NCN leaders say service disruptions are spreading across the country and warn the situation will worsen if Congress passes further cuts to Medicaid and nutrition programs.
Sources: National Council of Nonprofits
Independent Sector Launches Nonpartisan Voter Engagement Series Ahead of 2026 Midterms
Independent Sector is launching “Voices in Action,” a monthly nonpartisan email series providing nonprofits with practical guidance for civic engagement ahead of the November 2026 midterm elections. The initiative draws on recent IS research showing that significantly fewer nonprofits report engaging in advocacy or lobbying compared to 20 years ago—even as polls show strong bipartisan public support for the sector’s civic role. An IS poll conducted in April 2026 found broad support across party lines for nonprofits helping communities participate in elections. IS emphasized the series will not endorse candidates, positioning it as a tool to help nonprofits exercise their full legal right to voter education.
Sources: Independent Sector
Curated by JD · samwise.agency
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