I had the opportunity to attend 3 separate online events this past week hosted respectively by CalNonprofits; the California Lawyers Association Nonprofit Organizations Committee; and Independent Sector, NTEN, Bridgespan Group. Each event was packed with valuable information, some of which I share (together with my own commentary and additional resources) with readers below.

Federal Threats, Local Impact: A Policy Update for California’s Nonprofits – CalNonprofits

Webinar recording

• Virtual Town Hall with Rep. Robert Garcia (D-CA), Ranking Member of the House Committee on Oversight and Government Reform
• Need younger, more aggressive voices for change to antiquated systems and practices
• Nonprofits are under attack, including with reporting burdens, and the holding back of awarded grants
• Oversight Committee (chaired by Rep. James Comer (R-KY)) is itself attacking nonprofits right now throughout the country (esp. if engaged in DEI, immigration, LGBTQ, advocacy) – this could be reversed after the November elections with a new majority and chair
• Garcia doesn’t believe in harming many for the mistakes of a few when it comes to the nonprofit sector; instead he believes that the focus must be on the current big problems of political corruption, large corporations enriching themselves at expense of labor, AI companies and public officials enriching themselves – the big problems are not within the nonprofit sector

Understanding the Constantly Changing Legal Landscape – CLA Nonprofit Orgs Committee

• Presentation by Rose Chan Loui,  Founding Executive Director of the Lowell Milken Center for Philanthropy and Nonprofits at UCLA School of Law
• Deluge of activity:
  • To date in 2nd Term: 274 Executive Orders, 84 presidential memoranda,167 proclamations
  • Use of federal agencies to change regulations and policies
  • 3rd Party Lawsuits, especially in DEI area
  • Demonization of philanthropy and nonprofit sector
• Threats against nonprofits:
  • Loss of federal funding
  • Loss of donor support or access to donor support
  • Tax audit or investigation (civil or criminal)
  • Loss of federal tax exemption (and/or other favorable status)
  • Being labeled a domestic terrorist organization
  • Civil or criminal liability
• Bases for actions against nonprofits
  • Illegality (e.g., “illegal DEI,” aiding and abetting undocumented persons, providing abortions or otherwise helping women access abortions, protecting the environment, child abuse and mutilation)
    • Related post: Navigating the Practical Implications of the Illegality and Public Policy Doctrine – ABA Tax
    • Related article: Once and Future Revocation of Tax Exemption for Pursuit of DEI and Other Alleged Violations of Section 501(c)(3) (Ellen P. Aprill, SSRN)
  • Terrorism designation
    • Related article: How the IRS Can—and Cannot—Revoke Federal Tax-Exempt Status (Jeff Tenenbaum, ABA Business Law Section)
  • False claims
    • Related articles: What Nonprofits Receiving Federal Funds Need to Know About the False Claims Act (Arent Fox); FAQs for Recipients of Federal Funding Regarding Required Certifications(Lawyers Alliance for New York and NYLPI
  • Fraud
    • Related article: DOJ Sets Priorities for New National Fraud Enforcement Division (Morgan Stanley) 

AI & Nonprofits: The View from Within and Without – Independent Sector, NTEN, & Bridgespan Group

• Discussion of AI and nonprofits, featuring Amy Sample Ward, Nate Wong, and Kevin Miller, with a review of findings from two surveys: a joint NTEN/Bridgespan survey of nonprofit workers and leaders about how they are using AI and an Independent Sector survey of the American public’s opinions about nonprofits using AI
• The social sector sees opportunities for AI to advance their work, though those opportunities are largely untapped
• 2026 State of Nonprofit: AI Adoption and Governance Survey (subscribe here for updates on publication)
  • 70% – Agree that there are meaningful AI opportunities that their organizations are not yet taking advantage of
  • 8% have a 1-2 year roadmap in place for AI implementation
  • 4% believe AI is meaningfully integrated into how their work gets done
  • USA: 59% report that AI has had positive impacts where already implement on staff time and efficiency in last 12 months (Global Majority: 72%)
  • USA: 28% report that AI has had positive impacts where already implement on program reach in last 12 months (Global Majority: 42%)
  • 74% say that misuse of powerful AI by bad actors or the loss of control of powerful AI systems is a very urgent issue for civil society and philanthropy to address
  • 41% participate in field-level peer groups or coalitions on AI
• Impact of AI Usage on Trust in Nonprofits (see survey results within Trust in Nonprofits and Philanthropy report)
  • Those who use AI in their personal life or at work are significantly more likely to trust nonprofits who also use AI
  • There is broad agreement that transparency and human oversight are key to nonprofit’s AI usage
  • AI seen as more harmful than helpful for nonprofit activities
  • AI is not building trust with constituents (partly because of the absence of transparency – e.g., insufficient disclosure of whether and how constituents’ data is being used by AI)
  • Nonprofits must recognize that they have agency and options to determine whether to adopt AI (the fundamental question is will your contemplated use of AI be in service to your mission)
• Choosing Your AI Path: A Framework for Nonprofit Leaders to Make Strategic Choices (Nate Wong, Derek Brine, Natalia Alarcon, Paige Boehmcke, Eliza Patterson, Zach Slobig, Bridgespan Group)