Philanthropy This Week

Good morning.

Nonprofits have had more than their share of worries these past few years: spiraling costs, rising inflation, reduced giving, and the end of pandemic relief. Combine that with even greater need in the case of social services and declining audiences in the case of arts groups, and many charities are taking drastic measures, reports Sara Herschander in our January issue, posted online this week. They’re cutting programs, taking on debt, reducing staff, or closing their doors altogether.

“We’ve seen an increase in longstanding organizations deciding to close over the last three to six months,” Kristin Giantris of the Nonprofit Finance Fund told Sara. “What we’re finding with these longstanding leaders is that they’re at a point in their own careers where transitioning the organization to its next iteration, at a time when funding is decreasing and there is so much external pressure on nonprofits, just doesn’t feel realistic.”

There are signs the tide may be turning, with inflation easing and unemployment low, but questions surrounding the Trump administration add another element of uncertainty.

Alaska’s Perseverance Theatre is operating at a deficit with a bare-bones staff but isn’t raising prices for fear of losing more of its audience.

“We’re struggling but we’re not losing hope,” Frank Delaney, managing director, told Sara. “Theater is one of the only industries that has been reported to be dying for 1,000 years.”

Other highlights from this week:

• Whether you’re just starting out in your nonprofit career or you’re ready to move up the ladder, it’s important to know how to “manage up,” reports Lisa Schohl. From knowing how to communicate the impact of your work to figuring out your leadership style and getting to know your boss’s boss, Lisa outlines 11 steps to help you succeed in your career.
• Inspired by MacKenzie Scott’s example, a tech entrepreneur is vowing to give away half his family’s wealth in the next five years, reports Eden Stiffman. Jeff Atwood, who co-founded the question-and-answer network Stack Exchange, went from being an admirer to a critic of the Giving Pledge, which he says lacks urgency. “I lived the American Dream,” he told Eden in an emotional interview. “The American Dream doesn’t end with you getting rich. It ends with you helping everyone else get to where they need to be, too.”
• In her annual list of buzzwords nonprofits are likely to come across this year, Lucy Bernholz says the emphasis is on power — “who has it, who doesn’t, and how to get more of it,” she writes. They also reflect the growing influence of artificial intelligence, social media, and more in today’s world — from accelerationism (“a movement that promotes the most rapid and unregulated research and development of A.I.”) to weaponize (‘to turn a legitimate issue or concern into a tool for inflicting political damage”).

We devoted Friday’s Philanthropy Today newsletter to reporting and opinion about how nonprofits can prepare for what’s next. For example —

• Ben Gose explores how the incoming administration has many in the nonprofit world bracing for policy fights. Plus: the threats to nonprofits — as well as an opportunity — on Capitol Hill in 2025.
• Rasheeda Childress takes an early look at the potential for Rage Giving 2.0 — the phenomenon of donors opening their wallets to support charities whose missions are likely to be at risk during the new administration.

If you’re not already a subscriber, you can sign up for Philanthropy Today here.

— Marilyn Dickey, Senior Editor, Copy

As Donald Trump takes office a second time, the American Civil Liberties Union faces a tougher legal and political landscape than it did when it led the resistance to his first administration. Exhaustion and resignation among liberal activists and donors, a more conservative judiciary, and a more experienced and savvier cadre of people inside the second Trump administration will make the group’s battles more difficult. But ACLU Executive Director Anthony Romero predicted that activists and donors will come around as Trump begins to implement his policies this year. (Wall Street Journal — subscription)

A nonprofit-run app has become a lifeline for people in Los Angeles trying to track the path of the fires should they need to evacuate. Watch Duty, which relies on 200 volunteers and 15 full-time employees, has sometimes been more reliable than the official notification service. It has seen 2 million downloads since Jan. 7, and 14 million unique users over the past week, according to CEO John Mills, who said he set up the app in 2021 as a nonprofit because he has no wish to sell it and become a “disaster capitalist.” (New York Times)

Nonprofit clinics for low-income patients are being squeezed by a new law regulating what pharmaceutical companies can charge for certain drugs. Manufacturers sell those drugs at a discount to the clinics, and they must offer further discounts whenever they raise the price of the drugs above the rate of inflation. A 2024 law increased those “penalty” discounts so much that drug makers dropped their prices, wiping out the additional discounts for clinics. In response, some clinics have had to cut programs or switch patients to second-choice drugs, while some patients are paying considerably more out of pocket. (New York Times)

The Texas Supreme Court heard arguments Monday over whether the state’s attorney general can shut down a Catholic charity that provides aid to immigrants and poor people. Attorney General Ken Paxton has sought documents from Annunciation House, and ultimately its closure, but was thwarted by a lower court. The state argues that the charity harbors people who are in the country illegally and that religious protections do not confer immunity for violating immigration laws. The charity says the actions violate its religious freedom and that officials have failed to show that it conceals people from law enforcement. (Courthouse News Service)

A nonprofit that has opposed clean-energy measures, arguing they are a financial burden on minority households, has undisclosed ties to the fossil-fuel industry. The Energy Poverty Awareness Center, which last year helped kill a Maryland bill to ban natural gas in most new buildings, was launched with help from the Consumer Energy Alliance, most of whose members are “oil companies, gas utilities, and other firms that profit from fossil fuels.” An energy-policy researcher said the fossil fuel industry uses such groups as fronts “to obscure the harms this industry causes these communities.” EnPAC’s founder, former Baltimore Ravens player Gary Baxter, said it is an independent organization, and a spokesperson for CEA said the alliance’s early support of EnPAC was a “normal practice.” (Washington Post)

Your Chronicle subscription includes free access to GrantStation’s database of grant opportunities.

Archives: The Andrew W. Mellon Foundation’s Call for Proposals to Community-Based Archives will provide general operating support grants to community-based archives in the United States. The focus is on community-based archives that represent and serve communities marginalized due to oppression. These organizations gather and share materials as members of under-documented communities to preserve and celebrate their collective histories. Grants range from $25,000 to $100,000 over two years; application deadline is March 12.

The Outdoors: The National Park Trust’s Kids to Parks Day School Grants Program helps under-resourced U.S. schools and students to discover and explore parks, historic sites, public lands, and waters. Title I, pre-K through 12 classrooms in the U.S., including U.S. territories, are eligible to apply for grants of up to $1,000 for in-park experiences. Application deadline February 7.