August brings sharpened focus to the systems shaping daily life in our communities—from housing and healthcare to nonprofit funding and civic participation. Across every issue, one thing is clear: the fight for equity is not abstract. It’s local, urgent, and deeply impacted by policy decisions happening now.
At the federal level, the passage of H.R. 1 brought both expanded charitable deductions and troubling restrictions, including a 1% floor on corporate giving and a ban on federal funding for nonprofits that provide or refer for abortion care. An IRS filing threatens nonprofit non-partisanship by exempting religious organizations from the Johnson Amendment, which would allow them to endorse political candidates for office. A coalition of nonprofits is opposing this exemption and needs signatories for their petition.
In California, the 2025–26 state budget closed a significant deficit while cutting one-time funds for the arts, climate, and equity infrastructure. Though some safety net programs were protected, the trade-offs underscore the long-term risks of unstable public funding.
Affordable housing remains a top concern. Advocates are rallying behind proposals to build affordable homes, calling for bold use of public land to meet local needs. Meanwhile, new data from the Out of Reach report and the Silicon Valley Pain Index highlight the widening gap between wages, rent, and racial equity across the region.
Each action, petition, or training is a step toward a more just and inclusive future. Thank you for showing up, speaking out, and building that future alongside us.
In solidarity,
Skye Hathaway, Policy and Equity Coordinator
To view Thrive and community events or to submit an event, visit Thrive's Event page.
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The federal tax package H.R. 1 introduces major changes to charitable giving and nonprofit policy—with consequences still unfolding. As outlined by the Council on Foundations and the National Council of Nonprofits, the bill temporarily reinstates a non-itemizer charitable deduction, allowing taxpayers to deduct up to one-third of the standard deduction for donations through 2026. This could encourage broader giving but falls short of permanent or more robust reforms.
More consequential is the new 1% floor on corporate charitable deductions—meaning corporations can only deduct donations that exceed 1% of their income. Nonprofit leaders warn this could significantly reduce corporate philanthropy, especially from companies that make smaller, consistent donations just under the threshold.
The bill also introduces new donor-advised fund (DAF) reporting requirements starting in 2026, aiming to increase transparency but adding complexity for fund managers. Several key nonprofit asks—like workforce relief and a permanent universal deduction—were left out.
In addition, H.R. 1 includes a provision that blocks federal funding to any nonprofit that provides or refers for abortion services, regardless of whether federal dollars are used for that care. As reported by the Los Angeles Times, California and more than a dozen other states are suing to stop the measure, warning it will gut access to cancer screenings, STI testing, and reproductive health services—especially in low-income and rural areas. For nonprofits, the bill marks both an expansion of donor incentives and a politicization of service delivery that could chill key sectors of the field.
IRS Filing to Allow Church Political Endorsements
The National Council of Nonprofits has strongly opposed a recent IRS court filing that suggests churches should be allowed to endorse political candidates. In a public statement, the Council called the move “deeply disturbing,” warning that it threatens the longstanding nonpartisan nature of charitable work. Under current law, 501(c)(3) organizations—including churches—are prohibited from endorsing or opposing candidates. Advocates fear the IRS position could open the door to increased politicization of the nonprofit sector and erode public trust in community institutions.
The NAACP Legal Defense Fund says the administration’s July 24 executive order, “Ending Crime and Disorder on America’s Streets,” pushes punitive approaches to homelessness by promoting anti-camping and loitering enforcement, inviting federal assistance for encampment removals, threatening harm reduction programs, and ending funding for “housing first” models. Mental Health America warned the order conflates homelessness and mental illness with crime, relies on forced institutionalization, and coincides with proposed Medicaid cuts, urging investment in housing and community-based care instead. Read the LDF explainer and MHA’s statement.
Proposed Limitations on Public Service
Loan Forgiveness
The National Council of Nonprofits is urging organizations to speak out against proposed federal changes that could limit access to Public Service Loan Forgiveness (PSLF) for nonprofit workers. As detailed in their press release, the proposed rule would restrict which nonprofits qualify as public service employers under PSLF, potentially excluding entire segments of the sector. Nonprofit leaders warn this would undermine recruitment, retention, and the public value of nonprofit work. The U.S. Department of Education is accepting public comments through mid-August.
Federal Agencies to Base Eligibility on
Immigration-Status
New federal proposals from the Departments of Labor and Education would cut off access to workforce and education programs for many immigrants, including DACA recipients and long-term residents. As noted by the National Immigration Law Center, the changes shift eligibility from residency-based to immigration status-based criteria, reversing decades of inclusive policy. Advocates warn this will harm workforce equity and urge public opposition.
Retirement Startup Credit for Small Businesses
A new bipartisan bill introduced in both houses of Congress would create a “startup credit” to help small nonprofits launch retirement plans for their employees. As reported by the Plan Sponsor Council of America, the legislation would provide up to $2,500 in tax credits for nonprofits with 100 or fewer employees to offset plan startup costs. An additional $500 credit would be available for plans with automatic enrollment features. Supporters say the bill addresses longstanding inequities in retirement access among nonprofit workers, many of whom currently lack employer-sponsored options.
State Updates
California Budget Updates
California’s 2025–26 budget closes a nearly $47 billion deficit through cuts, delays, and reserve withdrawals—but structural challenges remain. As the California Chamber of Commerce notes, the budget protects core areas like education, health care, and housing, while scaling back climate, broadband, and infrastructure programs.
The arts saw mixed results. According to Californians for the Arts, base funding for the California Arts Council and youth grants was preserved, but one-time cultural investments—including museum grants and arts education partnerships—were cut.
As CalMatters highlights, these short-term fixes fail to address California’s long-term structural deficit. Nonprofits face continued instability, with year-to-year funding uncertainty threatening service continuity and sector planning.
CEQA Scaled Back to Speed Up Infill Housing
One of California’s most contested housing laws—the California Environmental Quality Act (CEQA)—was quietly scaled back in a budget trailer bill signed by Governor Newsom. As reported by CalMatters, the change eliminates the ability for opponents to sue infill housing developments under CEQA if those projects meet local zoning and planning rules. While environmental advocates have long warned of CEQA’s misuse to block housing, labor and equity groups worry this rollback could fast-track gentrification without community input. The change reflects a significant win for pro-housing advocates in a budget year otherwise marked by deep cuts. Read the full article here.
County Updates
New San Mateo County Office of Labor Standards
San Mateo County has launched a new Office of Labor Standards and Enforcement to combat wage theft and support workers’ rights. Housed within the County Executive’s Office, the initiative will focus on education, enforcement, and outreach in partnership with local organizations. According to the official announcement, the office aims to ensure fair treatment for low-wage workers and expand access to workplace protections countywide.
San Mateo County Correctional Health Receiving Additional Funding
San Mateo County Correctional Health Services has begun receiving CalAIM reimbursemenmarking a major step forward in providing more equitable care for justice-involved populations. As announced by the County Executive’s Office, these funds support pre-release care coordination for individuals exiting jail, connecting them to health coverage, housing, and community-based services. San Mateo County is one of only nine counties statewide currently accessing these reimbursements, advancing the broader goals of CalAIM to transform Medi-Cal into a system that treats the whole person.
Food Banks Struggling Amidst Federal Budget Cuts
Following major federal cuts to food assistance, Bay Area food banks are bracing for a surge in need. As reported by the San Mateo Daily Journal, the end of pandemic-era programs has reduced resources just as demand spikes—particularly among seniors, immigrants, and low-income families. Local providers warn that without sustained funding, many could face hunger despite being employed or housed.
Redwood City Anti-Camping Ordinance
Redwood City has adopted a new anti-camping ordinance that bans sleeping or storing belongings on public property when shelter is available. As reported by RWC Pulse, the policy passed after a tense public hearing in which dozens of residents expressed concern over safety, displacement, and the criminalization of homelessness. City officials claim the law aligns with legal precedents requiring available shelter before enforcement, while advocates warn it will further marginalize unhoused residents without addressing the root causes of homelessness.
Thrive Updates
CalSavers: Workshop for Nonprofits and
Small Businesses
Thursday, August 28, 3–4 pm, in person
Thrive Alliance, the San Mateo County Commission on the Status of Women, and CalSavers will host a workshop at the Sobrato Center for Nonprofits in Redwood City on California’s retirement savings program. Designed for local nonprofits and small businesses, the session will cover program benefits, compliance requirements, and the registration process ahead of the December 31, 2025 deadline for employers without a qualified plan. More info and registration here.
Apply to Thrive Alliance’s Translation Services Hub to receive free translation and interpretation support that your organization may not be able to provide independently. Our goal is a nonprofit sector where language is never a barrier—so every community member can access services and participate fully, no matter what language they speak.
The Hub offers free translation and interpretation services in Spanish, Chinese, and Filipino for eligible nonprofits.
If you have any question, feel free to email Skye Hathaway
Webinar: How the Voter’s Choice Act Changed Turnout in California
Tuesday, August 12, 11–11:30am, virtual
The Public Policy Institute of California will host a brief virtual event examining how the Voter’s Choice Act (VCA) has affected turnout across the state. PPIC policy director Eric McGhee will present findings from a new report showing mixed results: while the VCA has expanded voting access in some areas, turnout has declined among Latino voters and in recent midterms. The session will explore lessons for future reforms aimed at equitable participation.
Webinar: Navigating Changing Laws on Voter Registration Drives
Tuesday, August 19, 11am, virtual
Nonprofit VOTE is hosting a webinar on changing state laws affecting voter registration drives ahead of the 2025 elections. The session, co-organized with the Fair Elections Center and National Voter Registration Day, will cover recent legal updates across states, practical strategies for compliance, and access to updated 50-state registration guides.
Conference: Powering California’s Future
Thursday, August 21, 2025, 9am–2:15pm, hybrid
This conference from the Public Policy Institute of California convenes energy experts, regulators, utilities and stakeholders at the SAFE Credit Union Convention Center in Sacramento. Organized as part of PPIC’s Speaker Series on California’s Future, this half-day event will explore how the state can meet its ambitious clean energy goals—balancing affordability, reliability, and sustainability amid growing demand and climate risks. Learn more and register here.
BATEP Trainings
Friday, August 22, 2025, in-person
The Bay Area Training and Exercise Program (BATEP) is offering two free trainings for nonprofits during the month of August. These trainings have been funded by the Bay Area Urban Areas Security Initiative (BAUASI) and attendance will be capped at 25 students.
The Continuity of Operations seminar (10am-12pm) was designed to provide nonprofit organizations with the information needed to differentiate between continuity of operations plan and emergency operations plan and provide tools and resources to develop plans. Technical assistance is a component of this seminar.
Active Attacker Response for Community Members is a 2-hour in-person workshop that helps prepare people for what to do in case of violence in their work or worship place. Utilizing proven best practices, research, and statistical resources, the workshop encourages people to create safe spaces, engage in situational awareness, practice how to respond in violent situations, and how to care for self and community after an incident.
Women's Equality Day 2025
Tuesday, August 26, 6–7:30pm, in person
The San Mateo County Commission on the Status of Women will host its annual Women’s Equality Day celebration, marking the anniversary of the 19th Amendment. This year’s theme, “Her Voice. Her Power. Our Future,” will spotlight women’s leadership and civic engagement, with speakers, local leaders, and community advocates reflecting, connecting, and encouraging action. More info and registration here.
Webinar: Climate Resilience & Economic Development
Thursday, August 28, 10–11am, virtual
Northern California Grantmakers and Sierra Health Foundation will host a virtual event exploring the intersection of climate resilience and economic development. The session will examine how climate disasters—like floods, wildfires, and extreme heat—are impacting both household and municipal finances, and how funders can support a just transition that builds wealth in frontline communities. Discussions will feature lessons from California Jobs First, Fresno DRIVE, and the Asset Funders Network’s 2025 report on climate and economic security. Registration is open to funders, nonprofits, and public leaders. Learn more and register here.
Silicon Valley Bike Summit
Thursday, August 28, 9am–5pm, in-person
The 15th Annual Silicon Valley Bike Summit will convene transportation leaders, advocates, and community members at the Library | Parks & Recreation Center in South San Francisco. Hosted by the Silicon Valley Bicycle Coalition, the summit focuses on advancing safe streets, equitable mobility, and active transportation infrastructure across the region. Registration is open through August 14, with discounted rates available for community partners and groups.
CalNonprofits 2025 Policy Conference
Wednesday, November 5, 8:45am–5pm, in person
CalNonprofits will host its 2025 Policy Conference at the California Endowment in Los Angeles, themed “United. Fearless. Powerful.” The event will bring together national and state nonprofit leaders, including Diane Yentel of the National Council of Nonprofits, Akilah Watkins of Independent Sector, Assemblymember Gregg Hart, and Senate President Pro Tempore Monique Limón, to reflect on this year’s challenges, strategize responses to funding cuts and policy threats, and build collective advocacy power. More info and registration here.
San Mateo County Youth Advocacy Group
San Mateo County’s Youth Advocacy Group (YAG) is now accepting applications for its next cohort of youth leaders focused on tobacco prevention and community health. As outlined on the program website, YAG offers teens the chance to research local tobacco issues, meet with decision-makers, and lead public health campaigns. Open to San Mateo County residents in 8th-12th grade, the program provides training, leadership development, and a platform to create real policy impact. Applications are currently open.
The State Council of Developmental Disibilities (SCDD) is offering free virtual trainings on upcoming Medi-Cal changes affecting people with disabilities. As listed on the SCDD website, sessions will cover redeterminations, CalAIM reforms, and how to keep coverage as policies shift. Open to individuals, families, and providers. Registration required.
Resources
Thrive Community Safety Resources
Thrive is committed to highlighting the incredible organizing power of our local nonprofit and partner communities always and especially during this time. We have created this Community Safety Resources section to do just that. By working collectively and shining a light on our sector's collaborative, caring power, we will lighten each others' loads as we renew ways to safeguard our diverse communities. All resources for responding to the new federal administration, from immigration to financial support (which we would normally have shared in this newsletter), can be found there.
Index on Unaffordability of Housing
The National Low Income Housing Coalition’s 2025 Out of Reach report shows that housing remains unaffordable for low-wage renters. In California, a worker must earn $47.38/hour to afford a two-bedroom rental—far above average wages. The report calls for urgent federal and state action on rental assistance and affordable housing.
California's "Frozen" Housing Market
California’s housing market has slowed to a crawl, with both home sales and listings at record lows. As reported by CalMatters, high interest rates and limited inventory have created a “frozen” market, where would-be buyers are priced out and current homeowners are reluctant to sell. Experts say the stall is deepening California’s housing crisis and increasing pressure on the rental market, particularly in high-cost regions.
Of Interest
Impact on Job Site Immigration Raids
A CalMatters investigation finds that immigration raids at job sites rarely lead to long-term employment gains for U.S. citizens. Instead, they often disrupt industries and harm communities without addressing labor shortages or wage issues. The findings challenge renewed political calls for aggressive enforcement.
Report on California Digital Access
A new PPIC report shows that while internet access has improved statewide, significant digital divides persist—especially for low-income, rural, and Latino households. Nearly one in five Californians still lack reliable home internet, limiting access to education, health care, and public services. The report calls for targeted investments in broadband infrastructure and affordability programs to close the gap.
2025 Silicon Valley Pain Index
The 2025 Silicon Valley Pain Index reveals deepening racial and economic inequality in the region. Black and Latino residents face persistent disparities in income, housing, and incarceration, while tech wealth continues to surge. Researchers urge systemic reforms to address exclusion and redistributive policies to close the region’s growing equity divide.
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