The 54th ARNOVA Annual Conference took place in Indianapolis last month. The Association for Research on Nonprofit Organizations and Voluntary Action (ARNOVA) describes itself as “a diverse community of scholars, educators, philanthropists, and practice leaders focused on strengthening the field of nonprofit and philanthropic research to improve civil society and human life.” The ARNOVA conference provides a forum for its members, presenters, and attendees to share and learn from research about pressing issues and vital opportunities facing the voluntary or nonprofit sector.

While I did not have the pleasure of attending the Conference, I did catch a Pre-Conference Webinar: Fast Forward: Policy & Legal Implications for the Future State of the Philanthropic Sector. I have included some highlights of the session with additional resources below.

Session Description

Tremendous change came to the philanthropic and nonprofit sector in 2025 in light of a slate of new policy pronouncements and resulting legal challenges. A portion of these changes resulted from rapid shifts in U.S. federal and state policy, yet others are the progeny of longstanding differences in perspectives regarding the role of the philanthropic sector in the U.S. All are harbingers of greater change that fundamentally will alter the future landscape of philanthropy, with impacts to be felt domestically and globally for many decades to come.

Join us for a deep dive on what these changes may augur for the future state of philanthropy with a panel of national policy and legal scholars and practitioners.

Panelists:

• George Mitchell, CUNY – Baruch College, Marxe School of Public and International Affairs; Center for Nonprofit Strategy and Management
• Phillip Hackney, University of Pittsburgh School of Law
• Mark Sidel, UW Madison Law School; ICNL; GPEI
• Matthew L. Evans, United Philanthropy Forum, VP of Advocacy & External Relations
• Sara Barba, Managing Director, Integer Policy

Facilitator: Cindy M. Lott, Clinical Professor of Philanthropic Studies, Director, Professional Doctorate in Philanthropic Leadership (PhilD), Stead Policy Fellow

Selected Highlights

• There has been an unprecedented convergence of threats to philanthropy and the nonprofit sector, including those targeting certain kinds of work (e.g., climate change, issues-based work that don’t align with the administration’s priorities), certain countries like China, and specific groups (e.g., Ford, Gates, Soros)
• Philanthropy is at risk when Congress is looking for revenues and Congress is always looking for revenues – see, e.g., Threats to Nonprofits — and an Opportunity — on Capitol Hill in 2025 (Ben Gose, Chronicle of Philanthropy)
• There have been critically harmful cuts in federal funding; new and increased taxes on nonprofits (e.g., universities, executive compensation), a change in approach as to regulating nonprofits based on ideology, and the use of antiterrorism as a basis to attack certain domestic nonprofits
• Philanthropy has a trust problem, and it has become an easier target for politicians to blame when it is not highly trusted by the public – see also Trust in Nonprofits and Philanthropy (Independent Sector)
• The 2023 Supreme Court case striking down affirmative action in higher education (Students for Fair Admissions case) is being used by opponents of diversity, equity, and inclusion and related activities as the establishment of public policy which may be used to threaten charitable organizations’ 501(c)(3) status – but see Revoking Tax Exemption for Pursuit of DEI and Other Alleged Forms of Discrimination (Ellen Aprill, SSRN)
• The following myth believed by many politicians and others must be dispelled and the narrative changed: philanthropy can fill the gaps caused by federal cutbacks – see also Philanthropy Alone Can’t Fill the Void — And it is Not Designed To (Lancaster County Community Foundation)
• Ignore policy at your peril; be vigilant about what’s going on
• Policy makers and their advisors do not understand the exempt organizations and private foundation tax structures well and often conflate taxable entity principles when making or suggesting changes to the law – they need to be educated by nonprofits
• There remains murkiness among the differences between what is permissible and impermissible for 501(c)(3) and 501(c)(4) organizations, particularly when they are affiliated with each other and sharing resources; this murkiness is taken advantage of by both progressive and conservative groups
• Need more discussion about how the nonprofit sector should help form what federal regulations should look like and the need for possible transformational changes (should the IRS even be the agency regulating nonprofits on the federal level?)
• Need to break down silos within the sector and build long-term infrastructure for regulating nonprofits
• Need more investment in narrative change about philanthropy