While President Trump may not have signed the most Executive Orders out of all U.S. Presidents (that honor goes to Franklin D. Roosevelt), he has certainly made headlines with a flurry of orders limiting funds to various organizations, including institutions of higher learning and organizations funding nonprofits. If you are following the news closely, you know that it can be challenging to sort myth from fact when it comes to the impact of Executive Orders. Here, we sort through how these orders impact nonprofits, and what the President can—and cannot—do with the stroke of a pen.
Executive Orders Cannot Limit or End 501(c)(3) Status
One persistent myth is that the President, via an Executive Order, can limit or end an organization’s 501(c)(3) status. This is definitely a myth; the IRS governs 501(c)(3) status, and any changes to the rules regarding this must pass through a vote of Congress.
So, although the president may limit funds designated for organizations, he cannot strip that organization of its nonprofit status for any reason, including its adherence to diversity, equity, and inclusion policies.
DOGE May Investigate Nonprofits Receiving Federal Funding
Another rumor circulating in the nonprofit world is that DOGE, or the Department of Government Efficiency, may begin investigating nonprofits that receive federal funding. This is unproven but could potentially be true in the upcoming months.
Blocks on Grants to Organizations That Focus on International Issues
Washington State has a high percentage of nonprofits that focus on international issues. There are rumors that the President will sign an Executive Order blocking funding from such organizations. If your organization’s mission encompasses such work, it is vital to watch the news and watch for any such orders that may impact your work. You may also wish to get involved now to make your feelings known (see the end of this article for action steps you can take to make your voice heard).
Orders Targeting Specific Nonprofits
Other orders may be coming that target specific nonprofits, including those linked to climate change activities and specific organizations named by the President, such as the Gates Foundation, the Ford Foundation, and others.
What You Can Do
If you are reading this and researching other Executive Orders that may impact your organization, you may feel frightened or helpless. What can you do to protect your organization, its funding, and its mission?
You can take several steps:
- Sign an open letter to the President: Coordinated by the National Council of Nonprofits, Public Citizen, State Democracy Defenders Fund, Leadership Conference on Civil and Human Rights, ACLU, and Americans Against Government Censorship, this letter states unequivocally that the President should not have the power to punish nonprofits based on ideological beliefs. You can find the letter here: An Open Letter Rejecting Presidential Attacks on Nonprofit Organizations.
- Contact Your Congressional Representative: You can contact your representatives and make your feelings known about the impact these Executive Orders may have on the non-profit sector and your organization. Find Your Representative.
- Prepare Now: Watch this video and read articles such as this one from the Nonprofit Quarterly on how nonprofits can prepare for changes due to Executive Orders.
It is unfortunate that nonprofits must prepare for situations in which their livelihood may be threatened, but this is the reality we are dealing with. Now is the time to understand the rapid changes at the government level and take steps to prepare for any potential impacts on your organization.
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