Good afternoon,

What you need to know this week: cuts to public funding of nonprofits, repeal of the EPA’s authority to fight climate change, pro bono services for charities ramp up, and more.

—Tamara Straus, senior editor

Bronx River Alliance

• Transformed relationships: With its cuts to a wide range of social services, the Trump administration is poised to upend decades of partnerships between the federal government and nonprofits to help people in their communities, reports Thalia Beaty of the Associated Press. Those partnerships have translated into a lot of money: The Urban Institute found $267 billion was granted to nonprofits from all levels of government — federal, state, and local — in 2021, the last year comprehensive data was available.
• Disappearing safety net: In McDowell County, W.V., the birthplace of the Food Stamps Program, nonprofits are already laying off staff or dipping into cash reserves because of lost government funds, reports the Chronicle of Philanthropy’s Alex Daniels. The strains created by new eligibility restrictions on SNAP are expected to be dire in McDowell, where more than a third of the population lives below the federal poverty line, said Rosemary Ketchum, executive director of the West Virginia Nonprofit Association. “These federal cuts are starving people.”
• Bronx nonprofits hit hard: The Bronx, where federal funding has proved indispensable for revitalizing green spaces, protecting survivors of domestic violence, and preventing youth violence, faces a reckoning. More than 84 percent of nonprofits based in the Bronx — which total 342 organizations — rely on federal grants that are now at risk, reports Sara Herschander for the Chronicle.
• Response from Washington: In response to questions about grant cuts to nonprofits offering early childhood education, food assistance, and refugee resettlement, White House spokesperson Kush Desai told AP, “Instead of government largess that’s often riddled with corruption, waste, fraud, and abuse, the Trump administration is focused on unleashing America’s economic resurgence to fuel Americans’ individual generosity.”

• ‘Endangerment finding’: The Trump administration is expected to repeal a 2009 declaration known as the “endangerment finding,” which scientifically established that greenhouse-gas emissions are a threat to human lives and the planet, reports the New York Times. The finding is the foundation of the Environmental Protection Agency’s authority to regulate greenhouse gases under the Clean Air Act and the federal government’s only tool to limit climate pollution from vehicles, power plants, and other industries.
• Nonprofit response: Nonprofit organizations, such as the Sierra Club and the Environmental Defense Fund, argue that repealing the finding would lead to more climate-related disasters, increased respiratory illnesses like asthma, and other adverse health outcomes, particularly in communities already vulnerable to pollution. Many of those nonprofit efforts have been defunded in recent months.
• Scientific research cut: On Friday, EPA Administrator Lee Zeldin announced the EPA will eliminate its Office of Research and Development, which focuses on improving air quality and reducing life-threatening chemicals, the Washington Post reports. In a statement, Zeldin noted $748.8 million in savings.

• Peak pro bono: Eighty percent of nonprofits say they will be interested in pro bono assistance within the next six to 12 months, according to a survey from the Taproot Foundation, reports the Chronicle’s Stephanie Beasley. Volunteers with legal, public relations, and human resources expertise are gearing up to meet the demand.
• Big versus small law: While some large law firms targeted by Trump have agreed to steer about $1 billion in pro bono work toward the administration’s favored causes, an “army” of solo practitioners, former government litigators, and small law firms have stepped up to volunteer to challenge the administration’s agenda, reports the New York Times. “I don’t know if the administration knew how many little guys are out there,” said Michael H. Ansell, a solo practitioner who joined the Pro Bono Litigation Corps, recently launched by Lawyers for Good Government, a legal nonprofit.

• Bush-era program: Changes from the U.S. Department of Education could limit which nonprofits qualify as eligible employers under the Public Service Loan Forgiveness program, according to the National Council of Nonprofits. The 2007 program is designed to encourage Americans to enter public service by promising to forgive their remaining student loans after they have completed 10 years of service.
• Some nonprofits might be excluded: The Education Department is expected to propose a rule that would exclude some nonprofits based on their mission or the communities they serve, such as organizations providing medical care for transgender minors, assisting immigrants, or “violating state tort laws, including laws against trespassing, disorderly conduct, public nuisance, vandalism, and obstruction of highways,” according to a March White House statement.
• Public comment period: The National Council of Nonprofits is urging nonprofit leaders and the public to comment on the proposed changes. “Charitable nonprofits rely on the Public Service Loan Forgiveness program to attract and retain the skilled work force needed to meet everyday challenges,” said Diane Yentel, NCN’s president. “Preserving the current definition of qualifying employer without additional limitations best serves nonprofit employees, public service graduates, and the communities that depend on them.”

• The Christian camp director: Sen. James Lankford, a Republican from Oklahoma, is widely regarded by nonprofit advocates as one of the strongest champions in Congress for the charitable sector, despite his vote for the One Big Beautiful Bill Act, reports Ben Gose of the Chronicle. His 15 years running the nation’s largest Christian camp have given him considerable nonprofit expertise.
• Lankford’s big win: In a seven-year legislative effort, Lankford helped establish a permanent charitable deduction for the 90 percent of Americans who don’t itemize their taxes. The new tax law, which goes into effect in 2026, will allow singles who don’t itemize to deduct up to $1,000 in cash gifts to charities and couples to deduct up to $2,000. “I made it very clear to my colleagues that we need strong nonprofits as a safety net,” Lankford said. “The more you can incentivize small-dollar donors, the stronger you are making nonprofits.”

“There’s no real playbook that we can draw on. And so that’s exactly what we’re hard at work trying to figure out right now.”

— Chronicle of Philanthropy interview with Mark Suzman, CEO of the Gates Foundation, on the philanthropy’s decision to spend $200 billion in the next 20 years and then shut down

If you have any tips for this newsletter, email us.