Features General

Amid Executive Orders: What Nonprofits Need to Know

There is a lot happening in Washington, D.C. right now, with numerous executive orders and policy changes emerging from the Trump Administration. Regardless of political views, these shifts bring questions and potential implications for nonprofit organizations.

Nonprofits should brace for long-term changes in federal grant policies. Organizations must stay informed, adaptable, and engaged with both policymakers and funders to navigate this uncertain landscape.

On January 28, 2025, at 5:00 PM, a new directive from the Trump Administration took effect, placing a temporary freeze on all federal financial assistance programs. This sweeping policy, outlined in a memorandum from the Office of Management and Budget (OMB), mandates a pause on issuing new awards, disbursing funds for open awards, and other related activities across federal agencies.

For nonprofits that receive federal grants, this memo presents significant operational and financial challenges. Key concerns include:

  • Funding Disruptions: Cash flow interruptions could affect payroll, programming, and service delivery.
  • Grant Cancellations: Awards currently in process, yet not contracted, may be revoked or modified if deemed inconsistent with new priorities.
  • Increased Oversight: Federal funding recipients should expect heightened scrutiny, with potential audits and performance evaluations.
  • Program Uncertainty: Nonprofits engaged in DEI, environmental, or international aid work are particularly at risk of funding reductions or termination.

According to the National Council of Nonprofits, the White House issued a new memorandum later rescinding the call to halt federal grants.

Nonprofits were loud, and they were heard!

Based on other executive orders, there will be more developments within the coming weeks, but let’s celebrate this win.

At the North Texas Nonprofit Institute, we understand that staying informed amidst these changes can feel overwhelming. That’s why we are committed to equipping you with reliable resources to track executive orders, assess their impact, and make informed decisions for your organization and those you serve.

We stand ready to support you in navigating these challenges, whether through information, guidance, or opportunities to connect with fellow nonprofit leaders. Together, we can remain adaptable, resilient, and focused on the mission-driven work that strengthens our communities.

Steps Nonprofits Can Take

Given these developments, nonprofit organizations should take proactive steps to mitigate risks:

  1. Assess Current Funding Status – Review all federal grant agreements and pending reimbursements to determine exposure to the freeze.
  2. Communicate with Federal Agencies – Reach out to grant officers for clarity on how this memo affects specific funding streams.
  3. Develop Contingency Plans – Identify alternative funding sources, including private grants, corporate sponsorships, and donor appeals.
  4. Advocate for Support – Engage with policymakers, industry groups, and nonprofit coalitions to push for exemptions or revised policies. Tell elected officials about the importance of these grants and that pausing them will have negative effects.
  5. Enhance Financial Planning – Reduce reliance on federal grants where possible and build emergency reserves to weather funding uncertainties.

Please find below a list of resources to help you stay updated. If we can be of further assistance, don’t hesitate to reach out.

RESOURCES

Democracy Forward
Democracy 2025 Response Center
Real-time analysis of Trump-Vance administration actions, to support legal challenges and provide resources.

National Council of Nonprofits
Executive Orders Affecting Charitable Nonprofits 
This document is being updated frequently, so you can click on the link to be sent to the most up-to-date version. 

United Ways of Texas

Local Nonprofit News
DFW501c Nonprofit Business Journal
We are partnering with DFW501c to publish periodic updates on changes.

Read an article we published a few months ago:
Why Nonprofits Must Embrace Lobbying Now More Than Ever

DFW501c.news publishes every week.
All of our reporting takes hours of time to curate, research and report news that can impact the work you do!

Your contribution of a few dollars a month will support our reporters, expand our coverage and ensure we continue bringing you timely, relevant nonprofit news!

Support This Site

About the author

Colton Strawser, Ph.D., CFRE

Colton C. Strawser, Ph.D., CFRE is the President of Colton Strawser Consulting. His work focuses on empowering organizations to create change through research, evaluation, fundraising, and capacity building. He can be found on Twitter at @Colton_Strawser.