In recent months, the threats facing nonprofit organizations have continued to develop at a furious pace. In the face of challenges like funding reductions and congressional investigations, nonprofits are taking the time to shore up their defenses and prepare for what’s to come. On this episode, we’ll discuss several recent events that have the sector talking so that your nonprofit can take the steps necessary to ensure your continued ability to boldly advocate on behalf of your communities.
Our Attorneys for This Episode
- Brittany Hacker Leonard
- Tim Mooney
- Natalie Roetzel Ossenfort
Recap
In recent months:
- Federal Executive Orders & Memos
- March 7: EO entitled “Restoring Public Service Loan Forgiveness,” which makes employees of organizations with a “substantial illegal purpose” ineligible for public service loan forgiveness benefits.
- August 28: EO entitled “Use of Appropriated Funds for Illegal Lobbying and Partisan Political Activity by Federal Grantees,” where the President directs the Attorney General to investigate whether federal grant funds are being used to support lobbying initiatives.
- September 25: National Security Presidential Memorandum (NSPM-7)+ Sept 22 EO designating Antifa as domestic terrorist org: designating domestic groups as terrorist orgs.
- Congressional Oversight (Letters and Hearings)
- October 6: Ways and Means Committee Letter to IRS requesting investigation of specific nonprofits and revocation of their tax-exempt status
- October 28: Letter sent to three 501(c)(3) foundations regarding their compliance with nonprofit tax law
- November 5: Letter sent to the Environmental Protection Agency regarding its funding of “far-left” organizations via the Greenhouse Gas Reduction Fund
- Check out the International Center for Not-for-Profit Law’s congressional investigations tracker for additional examples.
- State Level Actions
- Texas: November 18 Executive Order designating certain organizations “foreign terrorist organizations,” barring them from purchasing property in the state.
Stay Alert
- Be on the lookout for new state laws related to foreign contributions to ballot measures. At least 19 states have enacted bans on contributions from foreign nationals to ballot question efforts, nine during the 2025 legislative session alone.
- Expect a possible uptick in I-9 (Employment Eligibility Verification) Enforcement. Employers are required to timely and properly complete and retain Form I-9 for each employee they hire.
What You Can Do
- Don’t fall for the sternly worded “Letters to Santa” by Members of Congress.
- Conduct a compliance self-assessment with AFJ Bolder Advocacy’s “Advocacy Check-Up” tool.
- Take advantage of the Nonprofit Legal Defense Network (created in partnership with We The Action).
- Brush up on federal and state election season advocacy rules in advance of the 2026 Midterms, and adopt an election season advocacy policy for signature by staff, board members, and volunteers.
- Lobby against legislation that would create new barriers to your nonprofit’s advocacy. Just remember to stay within your public charity lobbying limits.
- Go on the offense.
- Reach out to AFJ’s Bolder Advocacy team for free technical assistance.
Resources
- Break in Case of Panic! (Hub)
- Preparing for Politically Motivated Attacks (On-Demand Webinar)
- How Nonprofits Can Fight Back Against Trump’s Harmful Executive Orders (Blog)
- Advocacy Check-Up: Compliance Self-Assessment Tool for 501(c)(3) Public Charities
- Nonprofit Legal Defense Network