Public policy news and updates for the philanthropic sector

July 25, 2025

What's Happening This Week...

• Happening at the Council
• What We're Tracking
• Additional Updates
• Happening in the States
• News, Resources, and Events

Happening at the Council

August Recess

With members of Congress leaving Washington D.C. for the August recess, we are also taking a break. You won’t see Snapshot in your inbox until after Labor Day unless there is breaking news impacting philanthropy. Have a lovely rest of your summer!

What We're Tracking in DC

Congress Investigates Nonprofits 

Last week, the House held several hearings on issues related to the tax-exempt sector, including two that focused specifically on 501(c)(3) organizations:

• On July 15, the House Judiciary Subcommittee on Oversight held a hearing titled “How Leftist Nonprofit Networks Exploit Federal Tax Dollars to Advance a Radical Agenda.” Committee Republicans criticized the Biden-Harris Administration for giving federal grants and tax dollars to charitable nonprofit organizations that they claimed used that funding to pursue left-leaning agendas, while raising questions about the activities of the organizations and in some cases naming their foundation partners. Committee Democrats called the hearing political theater, arguing the majority was targeting organizations that support vulnerable communities instead of addressing civil rights issues.
• On July 16, the House Homeland Security Committee held a hearing titled “An Inside Job: How NGOs Facilitated the Biden Border Crisis.” Republicans criticized the Biden-Harris Administration for its response to immigration at the Southern border and focused on how nonprofits that received federal grants from the Administration contributed to, exacerbated, or benefitted from the situation. Committee Democrats emphasized the humanitarian work done by nonprofit organizations.

These hearings reflect continued scrutiny of the nonprofit sector. The Council monitors all congressional activity related to nonprofit organizations. We will continue to update you in Washington Snapshot and our other channels. 

Additional Updates

• On July 29, The Funders Network will host a webinar covering the latest executive actions impacting transportation funding in communities across the nation and exploring the possibilities under the next reauthorization of the surface transportation bill. Register to learn more about the future of transportation funding in the United States.
• The Funders' Committee for Civic Participation (FCCP) announced the release of the Census Funder Toolkit to help the philanthropic community and community partners prepare for the 2030 Census. Join FCCP on August 12 at 1pm to learn more about the toolkit and receive updates on 2030 Census planning. 

Happening in the States

Lawmakers Enact Nonprofit Legislation

Newly enacted laws will impact nonprofit donations, fees, and regulations.

• Arizona: Newly enacted legislation clarifies the statute governing the qualifying charitable organizations tax credit, which affects cash donations made by individuals.
• Delaware: A bill signed into law amends the Newark Charter, authorizing the City of Newark to levy a $50 per student, per semester tax on all colleges and universities that host in-person classes there. This includes colleges and universities in Newark, whether state-run or otherwise tax-exempt.
• Maine: Lawmakers passed a bill to prohibit employer surveillance, including by nonprofits, of employees unless the employee is notified before surveillance begins. The bill awaits the Governor’s signature.
• Rhode Island: Companion bills (H.B.5562/S.B.783) will increase the audit threshold for charitable organizations to $1 million. The new law is effective immediately. 

News & Resources

• Could US charitable giving eclipse the government as a source of aid?, DevEx
• The government was once a steady partner for nonprofits. That’s changing, AP
• Development Philanthropy Must Be Partnership Not Patronage, Stanford Social Innovation Review 

Keep in Touch!

Please feel free to reach out to any of us on the Government Relations Team with comments or concerns, or to share an issue, article, event, or op-ed you would like to see covered in a future Washington Snapshot.

View this email as a web page.