ADVOCACY UPDATE

March 27, 2026

In this update:

• ACT by March 30 - oppose proposed harmful federal grant process changes 
• Advocating for nonprofits and philanthropy in DC
• Ramped up federal efforts to scrutinize nonprofits, foundations
• New toolkit for federal spending advocacy
• Governor signs immigration bills into law
• Upcoming events

ACT by March 30 to oppose harmful federal grant process changes

Sign onto nationwide letter and submit your own comments by March 30

Nonprofits have until March 30 to oppose proposed drastic changes to the System for Award Management (SAM) that would significantly alter the eligibility, process and execution of federal grant programs. 

SAM is the online portal through which nonprofits and other entities register and apply for grants and contracts from the federal government. As we reported earlier this month, the United States General Services Administration (GSA) has proposed changes to SAM that would require nonprofits and other federal grant recipients to sign new certifications in order to apply for or receive federal funding. These certifications mirror President Trump’s January 2025 executive order and a July 2025 memo from Attorney General Pam Bondi that attempts to significantly broaden interpretations of “illegal” diversity, equity, inclusion, and accessibility (DEIA). The proposed certifications also include provisions related to undocumented immigration and terrorism. 

In order to register for SAM or be eligible for federal grants, nonprofits and other grant or contract recipients would be required to certify that they do not engage in “illegal” DEI or other activities similar to descriptions in the Bondi memo. Examples include using criteria such as cultural competence, lived experience, “overcoming obstacles” or “diversity statements”; training sessions that exclude participants based on race or other protected characteristics; “diverse-slate” policies in hiring, and others. 

Entities would also have to certify that they will not “knowingly bring or attempt to bring to the United States, transport, conceal, harbor, shield, hire, or recruit for a fee an illegal alien” or “fund, subsidize, or facilitate violence, terrorism, or other illegal activities that threaten public safety or national security.”

The text of the GSA Federal Register notice is here, and the supporting documents, including the proposed certification statement, can be downloaded here.  The National Council of Nonprofits has prepared a comprehensive summary and comment guide regarding the proposal.

This directive, if adopted, would cause significant harm for nonprofits and the people and communities they serve.  It asks entities to certify that the entire organization does not and will not engage in or promote the wide array of activities that are deemed “illegal” in the executive order or Attorney General memo. Especially given the sweeping nature of these guidelines, the GSA proposal could subject organizations to significant risk of significant financial or legal penalties, and could cause many capable organizations to forego participating in the federal grants process altogether, to the detriment of the communities they serve.

ACTIONS NEEDED:

The deadline for public comment on the GSA proposal is March 30, 2026. 

1. Sign your organization onto a nationwide letter opposing the proposed changes.
2. Submit your own comments in opposition to the changes.  See this guide from the National Council of Nonprofits for assistance.
3. Contact New Jersey’s United States Senators, Cory Booker and Andy Kim, and your own Congressional Representative, to ask for their help in protecting nonprofit grantees and the communities they serve.
   
   

For more information:

·        National Council of Nonprofits analysis and Comment Guide

·        GSA Federal Register notice and supporting materials

Advocating for Nonprofits and Philanthropy in DC

Senator Andy Kim (third from left) and New Jersey's delegation of nonprofit/philanthropic advocates

Last week, the New Jersey Center for Nonprofits joined the Council of New Jersey Grantmakers in Washington, DC, to visit with federal lawmakers as part of Foundations on the Hill (FOTH). Organized by the United Philanthropy Forum, Independent Sector and the Council on Foundations, FOTH convenes philanthropic champions from across the country for several days of connections and learning, culminating with visits to Congressional representatives and staff on Capitol Hill. CNJG has invited the Center to join with its New Jersey delegation for many years.

In our meetings on the Hill, we reiterated several key themes:

• The important role nonprofits and philanthropy play in the wellbeing of our communities;
• The toll federal government policies are having on the ability of nonprofits to meet escalating needs;
• The negative impact of GSA’s proposed changes to the SAM government grants portal; and
• Specific items such as a bipartisan Congressional Philanthropy, and federal legislation to make community foundations and other funds eligible for IRA rollover donations.

It was clear from our meetings that our elected officials want to keep hearing about the impact policies are having on your organizations and the people and causes you serve.  We will continue to share our perspectives and those stories you give us (with your consent, of course), but it’s also important that they hear from you directly on a regular basis. 

As a reminder, 501(c)(3) nonprofits may advocate about general issues without limit, and may lobby on legislation within certain specified limits. See our fact sheet or contact us if you have questions.

White House, federal agencies ramp up efforts to scrutinize nonprofits, foundations

The Center continues to track growing efforts by the White House and other government agencies to investigate nonprofits and foundations under the pretext of “domestic terrorism” or fraud, all of which threaten to undermine the work of nonprofits.  As just a few recent examples reported by the National Council of Nonprofits and elsewhere:

• A September 2025 presidential memorandum directing the National Joint Terrorism Task Force (JTTF) and its local offices to “coordinate and supervise a comprehensive national strategy to investigate, prosecute, and disrupt entities and individuals engaged in acts of political violence and intimidation designed to suppress lawful political activity or obstruct the rule of law.”  The memo further directs the IRS “take action ensure no tax-exempt entities are directly or indirectly financing political violence or domestic terrorism,” and gives the Attorney General broad authority to recommend investigation of organizations as “domestic terrorist organizations” as defined by federal regulations.
• U.S. Attorney General Pam Bondi in December 2025 issued a memorandum ordering prosecutors and law enforcement agencies to prioritize the investigation of “extremist groups” engaged in "sophisticated, organized campaigns of targeted intimidation, radicalization, threats, and violence designed to silence opposing speech, limit political activity, change or direct policy outcomes, and prevent the functioning of a democratic society.” The memo lists "extremist” activities as including opposition to law and immigration enforcement; extreme views in favor of mass migration and open borders; adherence to radical gender ideology, anti-Americanism, anti-capitalism, or anti-Christianity."  On March 18, CBS News reported that the IRS and FBI are working together on an initiative to investigate nonprofit organizations in furtherance of the memos from President Trump and Attorney General Bondi.
• In February 2026, the attorney general of Montana and 18 other states (not New Jersey) requested that the Justice Department investigate more than 150 organizations for allegedly receiving “foreign dark money” from five organizations that “push extreme policies and fund left-wing green-energy and climate advocacy.”  Among other things, the letter points to funder site visits, financial reviews, due diligence, program progress and other activities to support its questionable claim that the grantee organizations are acting as “agents” of the funding entities and, by extension, of foreign actors.

These and other actions by the Executive Branch seek to undermine the credibility and missions of nonprofits nationwide, often on purely ideological, and constitutionally questionable, grounds. 

What can you do?

 Be sure your organization is as prepared as it can be in case of an investigation. This includes compliance, legal counsel, document retention communications plans, and ongoing conversations with your board, funders and staff teams.  For more suggestions, see https://nonprofitquarterly.org/nonprofit-legal-compliance-in-an-unfriendly-political-environment/  and   https://protectdemocracy.org/work/nonprofit-toolkit-responding-to-government-investigations/ .  Also keep speaking up in response to proposed changes, and feel free to contact the Center with any news about what you are experiencing.

New toolkit aids in federal spending advocacy 

Governor signs immigration bills into law

Two bills designed to provide increased protections for New Jersey’s immigrant communities and the entities that serve them were signed into law by Governor Sherrill on March 25.  

• A-4070/S-3522 (now P.L.2026, c.4) establishes the “Privacy Protection Act,” concerning the collection and sharing of certain personal information by State and local government entities and health care facilities. Under the bill, government entities and health care facilities are prohibited from requesting or collecting information relating to a person’s immigration status, place of birth, social security number, and individual taxpayer identification number unless it is strictly necessary to assess eligibility for, or to administer, a requested public service, benefit, or program. 
• A-4071/S-3521 (now P.L.2026, c.5) codifies the Attorney General’s “Strengthening Trust Between Law Enforcement and Immigrant Communities” directive, also known as the Immigrant Trust Directive, which reaffirms that there is a necessary distinction between State, county and local law enforcement and federal immigration authorities. It makes clear that it is not the role of State, county, or local police officers in New Jersey to carry out federal civil immigration enforcement. The federal government is responsible for enforcing federal civil immigration violations. New Jersey law enforcement officers are already tasked with the demands of protecting the public, investigating state criminal offenses, and enforcing state criminal law.

UPCOMING EVENTS 

This series is presented by the Council of New Jersey Grantmakers, Gathering Ground, Grunin Foundation, New Jersey Center for Nonprofits, NonprofitConnect, Nonprofit Professionals of Color Collective, Pro Bono Partnership, and the Support Center, with support from the Community Foundation of New Jersey, Grunin Foundation, and Schumann Fund for New Jersey. 

Join us April 8 for Policy World Wednesday!

Wednesday, April 8, 12:30-1:30 PM 
FREE; open to staff or board members of nonprofit or philanthropic organizations

Hosted by the New Jersey Center for Nonprofits and the Council of New Jersey Grantmakers, Policy World Wednesdays are FREE monthly Zoom sessions focused on key policy issues affecting the nonprofit and philanthropic communities.

Join us to discuss all things policy, including the latest developments at the federal, state and local levels; legislative insights and advocacy opportunities; and to share any other policy or advocacy issues currently on your organization’s radar. Network with, and learn from, other changemakers to help stay abreast of current trends, build partnerships and strengthen advocacy skills for increased influence in public policy matters. Whether you’re new to advocacy or an experienced veteran, we hope we’ll see you there!

You must be a staff or board member of a nonprofit or philanthropic organization to participate. Preregistration is recommended but not necessary. (You will need to sign in to participate.)

Register for Policy World Wednesday

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As part of that promise, we have a responsibility to advance an equitable society, to shine a bright light on the harsh reality of systemic racism and injustice and to actively work against it."

Membership is a sound investment in your organization and in New Jersey's nonprofit community. Benefits include:

• The Center as your nonprofit advocate in Trenton and Washington 
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• And so much more!

Annual dues start at just $99. Become a member and start your benefits right away!

Information in this communication does not constitute legal advice or a legal opinion. For answers to specific questions concerning your situation, you should consult a knowledgeable attorney who can advise you regarding your particular circumstances.