Carolyn Woodard covers two developing stories this week that together raise a bigger question for nonprofits: as AI infrastructure money floods into communities and philanthropic channels, is your organization ready to navigate it?

First, Senator Bernie Sanders has introduced the American AI Sovereign Wealth Fund Act, which would require large AI companies to transfer half their stock to a federally managed public fund, with annual payments going directly to every American. The idea draws on a broader argument gaining traction across the political spectrum: that AI was built on humanity's collective output, and the public deserves a share of what it produces.

The second story hits closer to home — literally. What would you do with a one time gift that was more than your annual operating budget? Would you worry about the strings attached? In Fauquier County, Virginia, a data center developer called Gigaland has announced $10 million in grants for 10 local nonprofits, contingent on receiving a building permit. Some nonprofits have said yes, some have said no, and most are waiting to see what happens. This tactic may be coming to a community near you soon. What can citizen groups do locally when up against data center money? 

This episode also zooms out to look at how Meta, Google, and Amazon run ongoing community grant programs in their data center host communities, and how citizen coalitions in places like Lancaster, Pennsylvania have negotiated binding community benefit agreements instead of accepting gift-bribes.

This episode covers:

• The Sanders bill and the question of who benefits from AI-built-on-public-data.
• How data center developers are using advance grant offers to nonprofits as a goodwill strategy before permits are approved.
• The difference between voluntary corporate giving and binding community benefit agreements, and what nonprofits and citizen coalitions can do to push for the latter.
• Four questions every nonprofit board should think through before a windfall lands: donor displacement, reputational risk, sustainability, and your ability to advocate freely.
• Why having clear organizational values and a gift acceptance policy in place before the money arrives is the most important preparation you can make.

Resources Mentioned:

• American AI Sovereign Wealth Fund Act – Senator Bernie Sanders – https://www.sanders.senate.gov/op-eds/the-public-should-own-half-of-the-big-a-i-companies/
• Exclusive: Gigaland Data Center Developers Offering Millions to Fauquier Nonprofits – FauquierNow – https://www.fauquiernow.com/news/business/exclusive-gigaland-data-center-developers-offering-millions-of-dollars-to-fauquier-nonprofits/article_193216f9-e23a-4aca-ae8f-679846bd2ef1.html
• The Third Wave of American Philanthropy – Nan Ransohoff – https://nanransohoff.substack.com/p/the-third-wave-of-american-philanthropy
• Fair AI-Fueled Data Center Development for Communities – Federation of American Scientists / Day One Project – https://fas.org/publication/community-benefit-agreements-data-center-development/
• Why Community Benefit Agreements Are Necessary for Data Centers – Brookings Institution – https://www.brookings.edu/articles/why-community-benefit-agreements-are-necessary-for-data-centers/
• Lancaster Data Center Agreement's Benefit to Community Questioned – Lancaster Online – https://lancasteronline.com/news/local/lancaster-data-center-agreement-s-benefit-to-community-questioned/article_b2654db6-c6e3-4719-8a0e-1f839c1e325e.html
• Is Your Nonprofit Ready for a Windfall? – Successful Nonprofits – https://successfulnonprofits.com/nonprofit_windfall/
• Nonprofit Windfalls: Managing Transformative Gifts – PNC Insights – https://www.pnc.com/insights/corporate-institutional/manage-nonprofit-enterprises/you-received-a-windfall-now-what.html
• Have a Plan Ready for When Big Gifts Surprise You – Chronicle of Philanthropy (paywall) – https://www.philanthropy.com/solutions/have-a-plan-ready-for-when-big-gifts-surprise-you/

New every Tuesday.

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