Navigating the Changes: Trump's Executive Orders and Nonprofits

Timeline on President Trump’s Executive Orders and Their Impact on Charitable Nonprofits: What’s Next?

Information about the Administration’s EO and Memorandums are subject to change. Most EOs may face legal challenges in the Courts. 

Just mere hours after President Trump was inaugurated, surrounded by supporters in the Capital One Arena in Washington, DC, Trump signed 26 Executive Orders (EO), making history as the most EOs signed by a President on Inauguration Day. In this article, we’ll explore the key EOs and their specific implications for nonprofits and grant-seeking organizations on a daily and long-term basis.

Among the Orders signed by President Trump was EO 14151, “Ending Radical And Wasteful Government DEI Programs And Preferencing”, which immediately spurred confusion across the Nation, especially for charitable nonprofits and grant professionals. The EO claims to terminate all Federal funding to grant awardees who “provide or advance Diversity, Equity, and Inclusion (DEI), Diversity, Equity, Inclusion and Accessibility (DEIA), or ‘environmental justice’ programs, services, or activities since January 20, 2021” (Sect. 2, iiC).  This EO was critical as the first to specifically name DEI and environmental justice efforts as the culprits of government inefficiency. The Order goes further by requiring the Office of Budget and Management and the Attorney General to terminate all ‘“equity-related” grants or contracts” and DEIA training for grantees and government contractors, and require monthly meetings between the OBM, the Office of Personnel Management, and the Assistant to the President on Domestic Policy to discuss any barriers to comply with the EO. 

Nonprofit organizations working directly in the fields of Environmental Justice and Protection, and promoting DEIA initiatives in the workplace and schools, who aim to obtain federal funding have reason to be wary.  It’s important to note that due to the sweeping nature of the EO, even nonprofits that work intersectionality and not directly impact or serve racial and ethnic minority groups, underprivileged socioeconomic groups, disabled folks, the LGBT+ community, or the environment may still face hurdles as to messaging concerns, reevaluating cash flows, and having to pivot away from federal opportunities to not compromise their mission. 

News of the Administration issuing more Orders and Memorandums that directly impacted nonprofits came at break-neck speed, with EO 14173, “Ending Illegal Discrimination And Restoring Merit-Based Opportunity”, issued the following day, as well as “Ending Radical And Wasteful Government DEI Programs And Preferencing” which terminated all DEI programs in Federal agencies. EO 14173 requires the heads of each Federal agency to conduct up to 9 investigations to ensure that all grant contracts with “public traded associations, large non-profit corporations or associations, foundations with assets of 500 million dollars or more…and institutions of higher educations with endowments over 1 billion dollars” include written agreements from the receiving organizations pledging their commitment to “not operate any programs promoting DEI” in line with new Federal EOs, and to “excise all references to DEI” (Sec 3). However, the vague and foggy nature of this EO rang many alarm bells because the ability to apply such a sweeping EO without defining the metrics used to determine which nonprofits are “large” and how each Federal agency will select their 9 organizations to investigate without facing legal trouble, is unclear. 

The EO went further by revoking 5 previous EOs that were signed dating from 1964 through  2016 that were aimed at boosting diversity and inclusion efforts and requiring nondiscrimination and affirmative action provisions in Federal hiring processes.

Adding to the confusion, a week later, the Office of Management and Budget (OMB) released a Memorandum of Temporary Pause of Agency Grant, Loan, and Other Financial Assistance Programs, which aimed to stop all federal funds to grantees, organizations, and individuals (outside of those receiving Medicare, Medicaid, and SNAP benefits). This Memo was met with panic and lawsuits, notably, from the National Council of Nonprofits the following day. Since February third the Memo was rescinded by OMB because of how quickly the order disrupted on-the-ground operations across Federal Agencies in hospitals, homeless and domestic violence shelters, suicide hotlines, and food pantries.  

Throughout this wave of Executive actions, there began to emerge a recurring set of targets: DEI, Environmental justice, LGBTQ+ rights, and Immigrants- that the Administration has set its sights on to eliminate from both governmental and private spheres. These EOs are currently jeopardizing many grant-seeking organizations that work with specific communities, use certain language, or have certain funding priorities in an unprecedented way. 

Resources and Moving Forward

Describing the strategy nonprofits, grant-seeking organizations and grant professionals must adopt when facing this new Administration, Diane Yentel, the President and CEO at the National Council of Nonprofits, argues that “to be successful, our response has to be equal to their efforts in strength, collaboration, sophistication, and coordination.” Which can already be seen in the efforts by state chapters of NCNs, professional non-profit networks, and community leaders, to compile informative lists of resources, educate non-profits on lobbying and effective communication with State Elected Officials, and to provide timely information on further policy and legal challenges that may affect nonprofits. The Minnesota Council of Nonprofits has provided Resources to Navigate Uncertainty which serves as a comprehensive list of informative and strategic resources nonprofits can use touching on a range of topics from Scenario Planning (Emergency succession, Presenting risks to board members and Explaining model to stakeholders, Risk Assessment), and Financial Modeling (Budget Scenario Planning, Cash Flow Management, Federal Funding Freezes), among others. 

Stories serve as powerful tools for truly understanding the work nonprofits do on a daily basis to keep communities thriving. This is an excellent time to provide context on how these EOs have impacted your ability to do so. Visit the The National Council of Nonprofits Tracking Executive Orders chart and share how the EOs have impacted your nonprofit's mission and the communities you serve. As federal funding challenges continue and the Administration publicizes negative messaging about the importance of nonprofit work and the marginalized communities we serve, the need for nonprofits is crucial and only growing. As CEO and President of the Minnesota Council of Nonprofits, Nonoko Sato stated “We fill gaps that the government cannot.” In these unprecedented times let us look to the communities we serve, that are at the heart of everything we do, for inspiration and as a true example of living and working resiliently.