Impact of Executive Orders on Nonprofits: What You Need to Know
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In the first weeks of the new administration, a series of executive orders have introduced significant policy changes affecting nonprofits.
These cover areas like diversity, equity, and inclusion (DEI), gender and LGBTQ+ rights, international aid, and immigration.
It raises critical questions about compliance, funding stability, and long-term program sustainability.
In this episode, Drew breaks down what these changes mean for nonprofit organizations connected to these areas and how they can adapt.
Skip Ahead:
(01:21) Diversity, Equity, and Inclusion (DEI) initiatives.
(04:03) Gender, sexual orientation, and LGBTQ+ services.
(07:59) International aid, environmental initiatives, and immigration.
(09:59) What can nonprofits do to adapt.
Resources
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Drew Reynolds: Today we're diving into the recent executive orders issued in the first weeks of the new administration and how they might impact nonprofit organizations.
Drew Reynolds: Now the executive orders focus on all kinds of things from diversity, equity, inclusion to gender, LGBTQ issues.
Federal aid and immigration and many more but they have broad implications for nonprofits really across the sector, raising questions about compliance program sustainability, future funding sources, and more before we dive in, I do want to of course mention that I'm not a lawyer and so organizations should consult with legal counsel and understand how these changes may apply to their work and that this episode is not providing any legal advice.
But anyways, as we dive into this I also want to be mindful of the impact this has had on the nonprofit sector. I know I've been in conversations with many folks in the sector and it's been a very difficult week as we've tried to make sense of how these executive orders might [00:01:00] impact the work. So to help with some of that, I think it was good to just understand what's going on and to read these orders.
So I went. It's been the weekend reading through the executive orders, reading through news reports on them as well, to understand how they might impact the sector. So that's the purpose of this episode, so that you can have that information for you to inform you in your work. So first one of the changes that I think has gotten some of the most attention this past week, were changes to diversity, equity, and inclusion programs.
And there were two executive orders and they had a number of different provisions. One that directs fatal federal agencies to eliminate all DEI programs that they currently fund or administer. So at the federal agency level elimination of DEI programs. They also remove DEI related language from federal agency guidance.
So it's going to be gone from websites and materials and reports and things like that, that you may have seen on federal websites previously. These executive orders also require federal grantees to certify that they do not run programs that promote DEI in any way that violates [00:02:00] anti discrimination laws.
Details on this I don't think are entirely clear about what that would include and what that would not include. So I think nonprofits should really be paying attention to that and what, what falls under this, this definition. But it does say that it's not just federal agencies, but also grantees.
So federal grantees who receive federal funds would also have to have some type of way of certifying that they're not running these DEI programs. They also call for investigations into large nonprofits and higher education institutions engaged in some DEI initiatives. So that's another piece that fits with some of those larger organizations.
So what does this mean for nonprofits? Nonprofits with DEI focus grants are going to need to assess their risk for potential funding restrictions or elimination of funding. That's a big one. Organizations also that offer government funded services to marginalized communities may have some additional scrutiny or eligibility and compliance concerns related to future funding.
Basically are the programs and [00:03:00] services you're offering going to fall under what is categorized or understood as DEI? I think that is an ongoing question that a lot of nonprofits are going to have to be thinking about over the next couple well, in the near future. And then even for nonprofits that don't receive federal funds, it is possible that the language in these could shift funding priorities in the private sector as well.
Who, who may have also similar pressure to be turning away from DEI programs as, as understood. Now, of course, there are legal challenges that are underway. For these executive orders. And some organizations are seekering temporary injunctions and things like that to block implementation.
But until these cases play out, nonprofits should closely monitor funding sources and compliance requirements. Okay. So that's the first round. Second set are, executive orders that focus on gender, sexual orientation, and LGBTQ plus services. The most notable was an executive order that previously ensured that federal agencies protected against discrimination based on gender identity and sexual [00:04:00] orientation.
That executive order was revoked. It also requires federal agencies to define sex strictly as male or female in a, in binary And not to use the term gender, but only to use the term biological sex and prohibits the collection of gender identity information and federal programs. It also removes federal funding for initiatives that include LGBTQ plus inclusion efforts.
So there's a lot here and the implications of this one, I think in particular are going to be very broad for nonprofits and includes nonprofits that might not necessarily think of themselves as somebody who provides LGBTQ. Programs per se but that has other ways that this, this particular executive order might impact them.
So certainly those that do provide services gender affirming care, related programming for LGBTQ plus services are likely to have funding disruptions or elimination, right? Should this order stay as it's written. And then also, I think the big challenge that's going to face. Almost every [00:05:00] nonprofit or just changes to government data collection processes and also data sources federal data sources that nonprofits rely on, but also how nonprofits collect data and information about the work that they do and in turn report back to the federal government.
So for example this past Friday, there was some news that the CDC was taking down information from its websites that. In order to be in compliance with this particular executive order. And for those of you who do substance use prevention work, mental health work or other things around adolescent health, you would have noticed that the youth risk behavior survey, which is the big national data set that kind of guides a lot of the work on that was removed this past Friday.
And which I believe is because that survey in particular ask questions around it, gender identity, sexual orientation, things like that, that could have been understood by this executive order to not be in compliance with that executive order. In addition, there was also some reporting that some research papers and other publications from federal agencies like the [00:06:00] CDC would have terms like gender and non binary need to be removed from research before publication.
So there's a real, real concerns, I think, in the research community. Around the implications of this executive order for research in these areas, but also scientific and academic freedom more broadly speaking nonprofits that use gender inclusive language on enrollment forms. That's an area of concern.
So if you are collecting information about your. the people that you serve on enrollment forms, evaluation surveys, or other data collection tools, and you receive federal funding, you may need to review and adjust these forms in order to comply with its executive order, particularly in the way sex gender and sex information would be, would be.
Gathered, so that's something to be reviewing and as an, as a non profit federal agencies have already begun implementing these changes. You know, I mentioned the CDC and the YRBS data. It goes beyond the CDC because many other federal agencies have been adjusting websites and language and materials that they had on their websites in response to this EO.
So [00:07:00] nonprofits should be proactively reviewing these federal funding agreements, your agreements and just prepare for potential shifts in LGBT requirements, focuses, emphases, et cetera, coming down the bike. Other areas. So those are two big ones, DEI and gender other nonprofit sectors that have been affected.
Certainly there has been a lot around international aid and humanitarian work. There was a 90 day pause in all foreign aid disbursement, which is delaying or reducing funding for nonprofits that work in international development and disaster relief, refugee assistance, those kinds of areas. I know that that 90 day pause is causing major disruptions for people who work in that area.
And some people have lost jobs, things like that. Some USAID and State Department contracts may also be reassessed, leading to potential defunding of specific projects in the areas of humanitarian assistance. In addition, there's climate and environmental stuff, and there's a whole lot that's around that around the energy sector, but specifically for non profits.
Rollbacks in the IRA, the Inflation Reduction Act, provisions that would have allowed non profits to use [00:08:00] federal dollars for clean energy. Projects for their own you know, capital worker buildings that they use to provide services. Tax incentives, sustainability, climate related, environmental justice and nonprofit initiatives as well are likely to be affected by these executive orders.
And then of course there's immigration. And I think the focus around immigration in intersection of nonprofit work and human services is an area of, of concern and where we need to be paying attention as, as in the nonprofit sector. There's a new executive order that directs agencies to review and potentially restrict funding for non profits that provide services to undocumented immigrants.
And this is, I think, really challenging for non profits because many non profits do, do not track immigration status so it makes it really unclear about What enforcement would look like in a situation like that and how this would play out in practice but it is going to be increasingly difficult.
I think that nonprofits that provide services to immigrant communities are going to face [00:09:00] increasing scrutiny and, if they're receiving federal funds for the work that they do. So what non profits can do next as a result of all of these executive orders. So first, stay informed and engage in some advocacy work.
Now, non profits can engage in advocacy as a part of their work if it's related to their mission, and it's limited in terms of the amount. There are some reporting requirements around that you want to be aware of. But you are also allowed to do an advocacy work within the executive branch. That's also a piece to to be mindful of.
I will try to also provide some updates to you all out there as how these executive orders impact nonprofit work, how they impact data and evaluation work. And then of course, I encourage you all to consider just finding different ways that you can advocate. On things that are relevant to your mission.
If these executive orders are impeding your ability to carry out your mission you know, consider finding ways to engage in some advocacy to be able to demonstrate the impact of your work, to talk about how important it is. I do think that this is [00:10:00] one of the most important times for nonprofits to really be thinking about storytelling and how you can share the impact of the work that you do and why it's so important that you do that work and the way that you do it.
To be able to communicate to the broader public how these executive orders may be negatively impacting your capacity to do that work. In addition there's a need to think about diversifying funding sources. I think it's important to be thinking about alternative funding options, private foundations state and local, local governance, the extent of that, that, that may work corporate sponsors, things like that.
And then also strengthening relationships with philanthropic funders just to be able to find different sources of, Of funding to be able to support your work. And then of course being on top of the compliance is going to be important. You know, what is the, how has the law been changed and what are your requirements as an organization to comply with the law?
And so your ability to understand those things is going to help you make important decisions around how you carry out your mission moving forward. Now, before we do wrap up. I do want to also take a moment just to simply acknowledge what many of you are probably [00:11:00] feeling right now as nonprofits impacted by these executive orders, whether through funding, uncertainty shifts in policy or changes, challenges and serving your communities.
This is a time of disruption and concern in many organizations are. Working powerlessly to adapt and advocate and continue their mission, despite these rapid challenges and changes really. So if, if your nonprofit is feeling the weight of these policies, I do want you to know that you're not alone.
The nonprofit sector has always been a cornerstone, I think, of, just resilience and innovation and service and, and care and concern. And I have confidence that the organizations are going to continue to find ways to support our communities, even in challenging times. And that as a sector, that's where we're all supposed to, to continue to do it, to come together and find ways to continue to do the work.
I do think it's important to recall too, that it's many of these policies are still evolving. I'm recording this on Sunday evening, February the 2nd. It's likely that by the time this gets to out into [00:12:00] the world, that there will be new changes that are going to be continuing to unfold that could impact these executive orders.
So just know that things are going to continue to change. And And with some legal challenges already underway, opportunities for advocacy, collaboration, collaboration and things like that are going to be important. So, so stay informed, stay connected with pure organizations, listen to the common good data podcast.
We'll try to keep you informed as best as we can to learn how you can advocate and adapt in ways that align with your mission. So again, we'll continue to follow these developments and share resources as best so you can make. The best decision for your organization as you navigate these new, this new terrain for our nonprofit work.
If your organization has been impacted, I'd also love to hear your perspective, reach out through our website, social media, just keep the conversation going about how we can continue to support each other. So thank you for all the work that you're doing out there, your dedication to your mission, your dedication to the community certainly matters now more than ever.
So until next time, take care, stay engaged [00:13:00] and let's keep working for the common good.
