Executive Orders’ Impact on Charities
Jan 30, 2025
President Trump signed dozens of executive orders following his January 20th inauguration, some of which affect nonprofit organizations. Not all of the executive orders will take effect immediately and many will likely be challenged in court. The National Council of Nonprofits has outlined a number of such executive orders to keep the nonprofit sector and donors apprised of issues that could impact them directly or indirectly.
According to The American Bar Association, “An executive order is a signed, written, and published directive from the President of the United States that manages operations of the federal government.” Executive orders “have the force of law, much like regulations issued by federal agencies,” but “are not legislation; they require no approval from Congress, and Congress cannot simply overturn them. Congress may pass legislation that might make it difficult, or even impossible, to carry out the order, such as removing funding. Only a sitting U.S. President may overturn an existing executive order by issuing another executive order to that effect.”
Diversity, Equity, & Inclusion
One executive order is related to shutting down Diversity, Equity, and Inclusion (DEI) programs. After the order was signed, the U.S. Office of Personnel Management (OPM) sent guidance to federal agencies instructing them to begin the process of shutting down any DEI-related programs; to put any federal staff working on DEI-related programs on administrative leave; to remove all outward facing media of DEI offices or initiatives, such as websites and social media accounts; and to terminate any DEI-related contractors. The order also rescinds Executive Order 11246, which required government contracts to include anti-discrimination provisions and affirmative action requirements. On January 27th, 2025, the U.S. Office of Management and Budget issued a memo calling for a pause of all federal funding for such programs beginning at 5pm Eastern Standard Time (EST) on January 28th, 2025.
In response, a number of organizations collaborated to file a temporary restraining order to stop the memo from going into effect, including The National Council of Nonprofits, American Public Health Association, Main Street Alliance, and SAGE. A separate suit was also filed in federal court by 22 state Attorneys General. A D.C. federal judge subsequently ordered an administrative stay temporarily blocking the funding freeze until February 3rd, 2025 at 5pm EST. On January 29th, 2025, the OMB rescinded its memo. The ultimate outcomes of the President’s executive order impacting DEI programs will unfold over time as these lawsuits work their way through the courts.
According to the National Council of Nonprofits, this executive order will have a negative impact on the nonprofit sector: “Nonprofits partnering with federal government agencies or receiving federal funding, especially through government grants and contracts, may experience longer wait times and slower processing, loss of points of contacts or difficulty reaching them, and increased strain on relationships.”
Return to In-Person Work
Another of the President’s executive orders ends remote working options, directing all federal employees to return to in-person work. Federal employees have until February 6th, 2025 to decide and communicate whether they will stay in their current role or resign under a deferred resignation program. Those choosing the latter can work through September 30th, 2025.
Immigrants
Many nonprofits working with immigrant populations can expect the need for their services to increase, such as those that provide legal aid or training, and those that deliver humanitarian or other direct aid. While the demand for services is likely to increase, the funding available to serve these populations is likely to go down as a result of the loss of federal funding. Human and social service organizations may be targeted by law enforcement as the President’s order related to removing undocumented immigrants from the country goes into effect.
This executive order directs federal agencies to:
*take action to remove undocumented immigrants from the country.
*requires the identification of all “unregistered illegal aliens.”
*directs relevant agencies to take action to block federal funding to sanctuary cities.
*requires all federal agencies to ensure undocumented immigrants do not receive any public benefits.
*directs the creation of statewide Homeland Security Taskforces and detention centers.
*requires the Attorney General and Secretary of Homeland Security to review all federal contracts, grants, and other agreements providing funding to nongovernmental organizations supporting or providing services to “illegal aliens” for conformity, waste, fraud, abuse, and compliance with immigration laws and pauses in funding.
*challenges the birthright citizenship under the 14th Amendment when the person’s mother was unlawfully in the U.S. and the father was not a U.S. citizen or permanent resident, or the mother’s presence was lawful but temporary and the father was not a U.S. citizen or permanent resident.
LGBTQ+
Charities serving the LGBTQ+ community, including those that provide gender-affirming care and other services, are expected to experience a loss of federal funding, strained relationships with government partners, and an increase in demand for services.
One of the President’s executive orders revokes a previous executive order preventing and combating discrimination on the basis of gender identity and sexual orientation. It also requires the United States to recognize only two sexes, male and female; directs the Executive Branch to enforce all sex-protective laws under the lens of two sexes; directs government-issued identification documents to only recognize two sexes; prohibits federal funds to be used to promote gender ideology; and requires all agencies to remove all references promoting gender ideology.
Other Executive Orders
Other of the President’s executive orders that could have a direct or indirect impact on nonprofits include implementing a federal government hiring freeze, removing pay transparency and equity requirements for federal workers, rescinding a previous Biden executive order requiring executive employees to commit to an ethics code and not accept gifts from lobbyists, and changing human resource policies for federal workers to allow for easier termination of employment.