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Philanthropy This Week

This newsletter featured a roundup of the most important news, opinion, tools, and resources of the week. The last issue ran on May 31, 2025 and was replaced by Need to Know This Week.

May 31, 2025
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From: Marilyn Dickey

Subject: The Growing Nonprofit Digital Divide: An Exclusive Chronicle Survey

Note: This is your last edition of Philanthropy This Week — but don’t worry! A brand-new weekly newsletter crafted to help you navigate all that is happening as a result of policy shifts in Washington is coming your way soon, so keep an eye on your inbox.

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Note: This is your last edition of Philanthropy This Week — but don’t worry! A brand-new weekly newsletter crafted to help you navigate all that is happening as a result of policy shifts in Washington is coming your way soon, so keep an eye on your inbox.

Art- Old Ways main art.png
Matthew Laznicka for The Chronicle of Philanthropy

Good morning.

The tech divide is growing, as some nonprofits embrace artificial intelligence and digital tools while others still print out emails and can’t take credit cards. Those are among the findings from the Chronicle’s exclusive new survey to find out how nonprofits are responding to rapid changes in technology, reports Sara Herschander.

Improved tech is among the top three priorities for 64 percent of nonprofits, yet many grant makers don’t fund technology, and those that do tend to support cutting-edge projects. And companies that once offered free software for some nonprofits no longer do so.

One nonprofit leader talked about a continuous loop of inefficiency. For example, her group can’t afford the tech tools to create slick presentations and data visualizations that could help it get funding for technology.

Not having better access to tech tools could be dire for some groups, Alethea Hannemann of Board.Dev told Sara, ushering in a “phase of extinction” for nonprofits unable to adapt.

Organizations that are joining the tech revolution should take their time, advises Jim Fruchterman, a 40-year veteran of AI technology. Don’t panic and jump into artificial intelligence as a cure-all, he says. Going in too fast can cause problems with data security and legal vulnerabilities.

“Don’t leap to the leading edge of tech. Just work your way up,” he advises. “Start with the cheap, generally accessible tech first. Walk before you try to drive a Ferrari.”

Other highlights from the week:

Legislation that would have allowed the U.S. Treasury Department to strip nonprofit status from any group it believes supports terrorists was excised from the massive tax bill in May, but that may not be the end of it, reports Alex Daniels.

In an interview with Alex, Lara Friedman of the Foundation for Middle East Peace said the “nonprofit killer bill” idea could resurface in future legislation because some in the GOP see it as a means to silence free speech. “There are likely going to be efforts to attach it to other pieces of ‘must-pass’ legislation,” she said, “which is a tried-and-true method in Congress of pushing through things that are more controversial or harder to pass on their own.”

The collapse of the nonprofit crowdfunding site Ioby last year should worry grant makers, writes Roger Doiron, the founder of SeedMoney, in an opinion piece. Ioby, which stands for “in our own backyards” — had been around for 16 years, helping people donate to environmental and social efforts in neighborhoods that are often overlooked by for-profit crowdfunding sites and other funders. But grant makers seldom support such platforms, which puts the small groups they raise money for in even greater peril.

“It isn’t just the end of a single platform,” he writes, “but a warning to philanthropy about the fragility of nonprofit crowdfunding.”

Most nonprofits are confronting unprecedented challenges amid federal funding cuts in terms of staffing, financial uncertainty, and the politicization of their work, especially those that work with marginalized communities. That’s according to a new survey by the Center for Effective Philanthropy, which found that more than half of respondents were considering reducing staff-related costs or drawing from reserves or endowments, reports Stephanie Beasley.

“I don’t want to overstate this because the finances of these organizations, over all, are relatively solid,” the group’s Phil Buchanan told Stephanie. “But there are more storm clouds that people see on the horizon as they look out into the future, more worries about the financial context than there were a year ago.”

      — Marilyn Dickey, Senior Editor, Copy


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      WHAT WE’RE READING ELSEWHERE

      Nonprofits and the Trump Administration

      NPR and three Colorado public radio stations have filed suit against the Trump administration, calling the withholding of federal support for the broadcasters “textbook retaliation” against news outlets that the president is critical of. “It is not always obvious when the government has acted with a retaliatory purpose in violation of the First Amendment. ‘But this wolf comes as a wolf,’” states the legal brief for the public broadcasters. The White House did not immediately comment. In his May 1 executive order barring the use of congressionally appropriated funds to support the Corporation for Public Broadcasting, which distributes more than a half billion dollars to public radio and television stations each year, Trump wrote that “neither NPR nor PBS “presents a fair, accurate, or unbiased portrayal of current events to taxpaying citizens.” (NPR)

      A group of young people who have used the courts to block state policies friendly to fossil fuel production are suing the Trump administration over several executive orders that roll back Biden-era climate efforts. Represented by Our Children’s Trust, a nonprofit law practice, the plaintiffs say the orders violate their constitutional “rights to life and liberty by infringing on their health, safety, and prospects for the future,” and that the president cannot “unilaterally override federal laws like the Clean Air Act.” Some of the plaintiffs are from Montana, where the state supreme court upheld one of their previous court victories and where the country’s only coal plant without modern pollution controls has been given an exemption from a Biden-era requirement to install them. (New York Times)

      Law enforcement agencies and nonprofits across the country have lost an estimated 373 grants from the Department of Justice worth about $500 million. Prosecutors and police, who thought their work aligned with the Trump administration’s priorities, are puzzled by the cuts, and nonprofit groups say officials knew little about the programs, such as violence prevention, they targeted. A scholar who is about to release an assessment of violence prevention efforts said “he’s seen no sign that the administration sought out” solid research before ending the grants. In a statement, the Justice Department said, “discretionary funds that are not aligned with the administration’s priorities are subject to review and reallocation” and that it was open to appeals from the groups. (NPR)

      The Trump administration’s cancellation of foreign aid in poor, volatile regions has already led to an uptick in “criminality, sexual violence, and instances of human trafficking,” U.S. diplomats have told the State Department. The U.S. had contributed nearly half of the UN World Food Program’s budget, but the administration has ended funding for the program in several countries, leading to slashed rations and starving children who resemble “walking skeletons,” the WFP’s Kenya country director said. Staff at U.S. embassies in several African and Middle Eastern countries have warned that the withdrawal of foreign aid could destabilize regions, leave an opening for terrorist groups and endanger U.S. security interests. A State Department spokesperson said, “No one can reasonably expect the United States to be equipped to feed every person on earth or be responsible for providing medication for every living human.” (ProPublica)

      Among the overlooked casualties of the Trump administration’s cancellation of arts and humanities grants are small organizations that preserve the history of their region or tell the stories of marginalized communities. In Los Angeles, groups like Clockshop, which has compiled a “cultural atlas” of peoples who have lived alongside the Los Angeles River; the One Institute, which “houses the largest queer archive in the world”; and the Los Angeles Poverty Department, which chronicles the history of the city’s Skid Row, have been left scrambling to make up for canceled grants. Many smaller groups lack the endowments, visibility, and deep-pocketed donors that larger organizations have been able to tap. (Guardian)

      More News

      In its five years, South Carolina’s Palmetto Abortion Fund has helped more than 2,000 women receive the procedure by going to states where abortion is more accessible. Working remotely through phones and an app, the volunteer-run nonprofit funded 1,022 abortions across seven states in 2024, spending $312,859, up from 390 procedures in 2023 and 200 in 2021. It has 2,000 individual donors across the country, but fundraising has slowed, and the fund has had to cap most grants at $300. Meanwhile the state legislature continues to consider tightening South Carolina’s six-week abortion ban. (Post and Courier)

      The closure of four Planned Parenthood clinics in Iowa will only feed the surge in demand that an abortion-access fund says it has seen since tight restrictions on the procedure went into effect in 2024. Last year, 625 Iowans received grants from the Iowa Abortion Access Fund and similar organizations to travel out of state for abortions, up from 194 in 2023. Planned Parenthood recently announced that it would close four of its six clinics in Iowa and four clinics in Minnesota. (KCRG)

      Almost all of some 20 groups in Boston surveyed by the Boston Globe about their pledges to racial justice causes in the wake of George Floyd’s murder five years ago say they have fulfilled or are in the process of honoring their commitments. “At least 20 foundations, organizations, and corporations pledged about $1 billion in grants, investments, and scholarships for equity-related causes,” according to a Globe review that could not independently verify many of the donors’ claims. Some recipients say the money has come with fewer strings and less paperwork, and that some donors have stepped up giving to replace canceled federal grants. Many worry, though, that the urgency around racial justice has faded and philanthropy’s focus will soon shift elsewhere. (Boston Globe)

      NEW GRANT OPPORTUNITIES

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

      Mental Health: The Saks Fifth Avenue Foundation’s mission is to make mental health a priority in every community, especially those where support is most needed. The Foundation’s Local Grant Program supports U.S.-based, local organizations serving the mental health of those in need. Support will be provided for ten organizations focused on increasing awareness and education, improving access to care, and building protective factors. Grants range from $10,000 to $30,000; application deadline July 1.

      Green Spaces: The Lots of Compassion Grant program, an initiative of KidsGardening and Mrs. Meyer’s Clean Day, provides support in the United States, including U.S. territories, to local leaders looking to transform vacant lots into gardens to help grow compassion in their community. Supported projects should work with or serve communities with a majority of individuals that are under-resourced, have fifteen or more people participate in the garden program, and use the funds to build a garden on a vacant lot. Ten grantees will receive $20,000 each; application deadline June 16.

      Marilyn Dickey
      Marilyn Dickey is senior editor for copy at the Chronicle of Philanthropy.
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