Policy Shifts Raise New Questions for Nonprofit Fundraising and Reporting

Policymakers are weighing changes that could affect how nonprofits fundraise, report, and manage costs — from the potential wind-down of the Combined Federal Campaign (CFC) to expected postal rate increases and renewed interest in Form 990 reform.

At the 2026 Nonprofit Fundraisers Symposium, Ann Hollingsworth, vice president of government affairs at The Nonprofit Alliance, outlined how these issues are evolving in Washington and what they could mean for nonprofit operations in the months ahead.

A Major Fundraising Channel Faces Uncertainty

The future of the Combined Federal Campaign, a longstanding workplace giving program for federal government employees and retirees that has raised more than $9 billion for nonprofits, is still in limbo.

Last fall, the Office of Personnel Management considered ending the 2025 campaign, prompting a coordinated response from the sector. More than 400 nonprofits signed a letter urging the administration to continue the program, and the decision was ultimately reversed in time for the 2025 campaign to launch.

But that reversal may only be temporary.

“There really is a winding-down effort by this administration to end the CFC altogether,” Hollingsworth said.

The Nonprofit Alliance helped advocate for an extension of the campaign through the end of January following government shutdown delays, but by the next month the campaign portal was on the chopping block again, much to the surprise of many members of Congress, Hollingsworth said. 

“We met with the White House to raise our concerns about this directly, and we are working in coalition on an additional letter and outreach campaign, and continue to message directly to members of Congress to call the White House about the importance of this program,” she said.

Postal Changes Could Raise Costs

At the same time, the U.S. Postal Service is considering changes that could affect another core fundraising channel: direct mail.

Earlier this year, the Postal Regulatory Commission finalized rules that generally limit how often the Postal Service can raise rates. But the U.S. Postal Service has since petitioned for additional pricing flexibility, seeking greater control over how and when those increases are implemented. A rate increase is expected as soon as mid-July, Hollingsworth said as the agency continues to face ongoing financial challenges.

“If implemented, this decision would permit the U.S. Postal Service to set prices without oversight or constraint by the PRC.”

Nonprofit advocates have pushed back, warning that continued rate increases are already affecting fundraising programs.

“Nonprofits want to mail more, but they can’t keep pace with the USPS price increases,” The Nonprofit Alliance wrote in comments to the commission. 

In another comment submitted to the commission, Disabled American Veterans (DAV) reported that postage increases have already forced the organization to reduce mail volume — even as direct mail continues to generate the majority of its donations.

“Direct mail generates more than 88% of DAV’s annual donations. However, since 2021, Nonprofit Marketing Mail postage has increased by 37% for DAV,” Tracey Burgoon, chief development officer for Disabled American Veterans, said. “This necessitated that we decrease our mail volume by 15% in order to ensure that our nation’s heroes receive the services and benefits that they deserve.”

Reporting Requirements May Expand

Beyond fundraising channels, nonprofits may also face increased attention on reporting and transparency.

In February, the House Committee on Ways and Means held a hearing focused on foreign influence in American nonprofits, raising broader questions about oversight and accountability across the sector.

There is bipartisan support among lawmakers to explore potential updates to Form 990 reporting requirements in order to gather more information from nonprofits.

“We anticipate that being something that could actually move this year,” Hollingsworth said.

Data Privacy and AI Rules Are Still Taking Shape

Data privacy is an additional area where nonprofits may continue to face uncertainty.

After previous efforts to pass a comprehensive federal privacy law stalled, the House Committee on Energy and Commerce has launched a new working group to restart the process and learn from past failings, Hollingsworth said.

“One of the key lessons was ensuring open lines of communication with their Senate counterparts, and all seemed to be very thoughtful with their engagement, which included a lot of outreach with our sector, she said. “... So we've been in constant communication with them, being very clear about the piecemeal approach and the impacts of that.”

The bill has yet to be introduced.

At the same time, the direction of whether artificial intelligence (AI) will be regulated at the federal or state level is still unclear. 

On the issue, President Donald Trump has issued the administration’s AI action plan as well as several executive orders focused on limiting the use of biased AI in federal agencies, speeding up data center approvals, expanding exports of U.S. AI technologies, curbing state-level AI rules, and reducing regulatory barriers.

“The plan was what we anticipated, but it was a little more detailed,” Hollingsworth said. “It focused very much on the importance of the creation of jobs, pushed for a lack of oversight, and, in fact, threatened retribution for states that actually regulated AI.”

Those actions have drawn pushback from state attorneys general, who argue they should retain authority over data and AI regulation.

That dynamic could prolong the current patchwork approach — requiring nonprofits to navigate varying rules across states. 

Artificial intelligence is also emerging as a policy focus, though the direction of regulation remains less clear. Policymakers are still grappling with questions around oversight, bias, and accountability, leaving organizations with limited guidance on how future requirements may take shape.

Last week, the White House also released a national AI legislative framework (opens as a pdf) that calls on Congress to establish a single national standard, prioritizing innovation and economic competitiveness while limiting a patchwork of state-level regulations. It also highlights areas such as child safety, intellectual property, and energy use.

“Multiple pieces of legislation that mirror President Trump's support of AI and the lack of oversight have been introduced on the Hill. Sen. [Marsha] Blackburn introduced the latest last week, but nothing has passed yet.”

More Attention on the Sector

Despite the uncertainty, there are also signs of increased engagement with the nonprofit sector at the federal level.

Hollingsworth pointed to a newly reconstituted philanthropy caucus in Congress, which is expected to create more space for discussion around charitable giving and the role of nonprofits.

That renewed attention could create opportunities for the sector to shape policy conversations, even as other developments introduce new challenges.