The Foraker Group

Right now, as the nonprofit sector, and as individual leaders, we are doing our best to navigate the twisting turns that lay in front of us. There are lions, and tigers, and bears, and a lot of “oh my” every day. That is, if lions are impoundment, tigers are rescission, and bears are the threat to nonprofit nonpartisanship, and the are all sitting against the backdrop of executive orders, that makes us exclaim another “oh my!”

This journey is sometimes loud, often confusing and even dizzying, and a lot to take in on any given day regardless of whether you agree with the actions or not. Honestly, it is so much all at once, one could just get overwhelmed without a full understanding of the whole story.

Let’s take impoundment, for example. This is the act of a President and administration to hold back or not release money approved by Congress. This has been happening since January in small and big ways all across the sector as nonprofits, local and state governments, and even for-profit contractors wait for money that has been signed and dated but not delivered. Congress has not stopped these actions so groups are turning to the judicial branch for relief because impoundment is illegal without Congressional approval. For the most part, the courts seem to agree. It is too soon to tell how it will all play out, and the consequences of these actions are also too soon to notice on a large scale. The loud and ferocious roar of this lion was deafening at first, but now we see that while some programs are closing, preparing to close, or paring down, many more have cut through the noise to rethink and reimagine their business models. And since most government funds are reimbursements not advancements, their challenge is to deal with the loss of revenue they already have spent. And, the freezing, unfreezing, withholding, and lawsuits continue.

Rescission is the tiger that literally hunted in the late-night sessions of Congress. Rescission is the act of revoking, cancelling, or repealing a law, order, or agreement. In this case, Congress acted on the President’s request to cancel funding of practically every federal department and their affiliated nonprofits with notable highlights including USAID, Department of Education, and the Center for Disease Control (CDC). Rescission also occurred directly with nonprofits engaged in public broadcasting. While the data shows people across the world and at home will suffer from these decisions, and the move certainly harms nonprofits and communities that depend on vital community and emergency information, education, and access, the act of rescission spells out an even larger set of threats as we move forward. The larger implications are, of course, general uncertainty in the marketplace which disrupts staffing, service delivery, and future planning. Since rescission is not ideologically neutral, it weakens the credibility of Congress and disrupts a basic tenant of American democracy – the separation of powers. Further, it could undermine bipartisan cooperation that is essential to pass major legislation including the federal budget. Every few years it seems we are on the verge of a government shutdown for failure to pass a budget or a continuing resolution, but usually compromise brings us back from the brink. We are about to witness what happens in this “post rescission Congress” when assumptions of “how things generally work” are no longer a given.

Nonprofit nonpartisanship is the bear that was just minding its own business but now threatens to rip apart the very structures we hold dear. Indeed, nonprofit nonpartisanship is under threat, and if you listen to any news station currently (regardless of political bent), you might believe it has already been gobbled up. However, the truth is that nonprofit nonpartisanship as outlined in the Johnson Amendment is still in place, for all but two nonprofits. For now. The Johnson Amendment was passed in 1954 with bipartisan support as a tool to keep partisan politics out of charitable 501(c)(3) organizations. Most of us, maybe you too, spend very little time thinking about this rule because it is so woven into the fabric of how charitable nonprofits do business – it is not an issue. But here we are again. Yes again.

In 2017, during his first administration, President Trump sought to overturn the Johnson Amendment. It didn’t work because it would have taken an act of Congress and the enforcement of the IRS. Neither of those things happened. In March 2025, the Free Speech Fairness Act was introduced in Congress – S. 1205 in the Senate and H.R. 2501 in the House. The legislation would weaken the Johnson Amendment by permitting charitable nonprofits from electioneering and supporting or opposing candidates for public office. Nonprofit nonpartisanship also faces another threat – this time from the IRS. In a court filing on July 7 of this year, the agency maintained that two churches can endorse political candidates without jeopardizing their nonprofit tax-exempt status. This case is not yet settled, and the bill in Congress has not yet passed – so the time to pay attention is now.

Keeping partisan politics out of charitable nonprofits is not only a matter of maintaining mission focus, it threatens to undermine existing donor and stakeholder relationships while also creating a backdoor to campaign fundraising using charitable nonprofit missions as a shield. This is a beast of a bear that could threaten so much. You can learn more about the threats and the action you can take here.

And let us not forget the “oh mys” that are the continued effects of the executive orders aimed at nonprofits and their work in communities. An executive order is a signed, written, and published directive from the President of the United States that manages operations of the federal government. It has the force of law but is not legislation so it does not require Congressional approval and Congress cannot simply overturn an executive order. However, Congress may pass legislation that might make it difficult, or even impossible, to carry out the order, such as removing funding. Only a sitting President may overturn an existing executive order by issuing another executive order to that effect. While every President has used the power of executive orders, we are in unprecedented times in their use and focus on dismantling the work of nonprofits. If you have not bookmarked this link and check it regularly, I recommend you do. While only focused on the impact on charitable nonprofits, this executive order tracker provides a solid understanding of what is at play and where things stand.

Phew! The threats are real. The journey is long. Thank goodness we are not walking this road alone. Just like Dorothy and her friends from varied backgrounds and lived experiences, we have some tools at the ready to pull us through together.

We have heart, courage, intelligence, and a deep belief that our work matters to count on.

And, because we don’t have to find complete alignment to work together for the common good, we can instead use all our various strengths to make us stronger together.

Let’s remember our commitment to the people and communities we serve is our superpower.

Let’s remember our courage to be bold and clear and dig deep when we need it the most.

Let’s remember our collective power and draw from every major social and civic movement in this country that was born in our sector and led the government to change for the betterment of everyone.

Let’s remember that civic engagement lives inside nonprofits as the essence of who we are.

Let’s remember all the incredible innovation that has come from the intelligence within our sector – innovations like the life-saving polio vaccine, the MRI machine, oil spill clean-up tools, and the economic development opportunities, educational adaptations, food systems, housing structures, art and religious experiences, and global systems of support. We are the home of intelligent innovation every day that supports the greater good.

And let us remember that our compassionate hearts, our creativity, and our intelligence will nourish our courage every day as we lock arms across political ideology and mission focus to persevere in providing what we know our communities are counting on. Not for ourselves but for our communities.

So, find your favorite shoes, your board, your peers, your colleagues across the sector and keep remembering “we have had the power all along.” We can do this if we do it together.

Know we are walking with you every step of the way.