Dallas Fort Worth Nonprofit Business Journal

Author: Colton Strawser, Ph.D., CFRE

  • Policy update: news and resources

    Washington continues to present uncertainty and new challenges for nonprofits providing programs and services in our communities. Executive orders are being issued, legal cases are making their way through the courts, and the constant starts and stops leave many of us navigating confusion. I can’t help but think we need a new Schoolhouse Rock video to keep up—but in the meantime, we at the North Texas Nonprofit Institute are working hard to track and report on these developments.

    Nonprofits across North Texas are fighting to ensure their clients receive essential services, including Catholic Charities of Fort Worth. Unfortunately, this case may be just the beginning.

    There are growing concerns from Washington that more nonprofits may come under scrutiny and face potential “investigations” in the coming months. With that in mind, I wanted to share a few key tips to help you stay prepared.

    1. Designate a Media Representative

    Ensure your organization has a trained spokesperson who can confidently communicate your mission, impact, and response to emerging issues. This person should be well-versed in your key messaging, able to handle press inquiries, and prepared to respond swiftly and strategically to media coverage. 

    2. Stay Informed and Proactive

    Keep up with policy changes, legal developments, and sector-wide trends that may impact your work. Join nonprofit coalitions, engage with advocacy groups, and regularly review updates from trusted sources to ensure you’re prepared for potential challenges.

    3. Maintain Strong Documentation and Compliance

    Ensure all policies, financial records, and program documentation are up to date and readily accessible. A clear record of your organization’s compliance with regulations, ethical standards, and impact metrics can help protect against unwarranted scrutiny and reinforce your credibility.

    4. Fight with Facts and Figures, Not Emotions

    When facing criticism or scrutiny, let data be your strongest advocate. Track and share key metrics that highlight your organization’s impact—such as the number of people served, success stories, and financial accountability measures. Clear, compelling data can help counter misinformation and reinforce your organization’s value to the community. From a regulatory and compliance standpoint, data often tells the real story. 

    While there have been many positive outcomes such as injunctions and pauses on different bills, the reality is that there will be more challenges ahead. It is important that organizations be proactive and prepare to defend their missions – regardless of the population served. 

    The North Texas Nonprofit Institute is planning some new trainings in the coming months to support agencies in activating their networks and informing stakeholders of the importance of their work, so stay tuned. If we can support your organization in any way, please let me know.

    Resources from the National Council of Nonprofits
    Free National Webinar Multiple lawsuits are underway to protect charitable nonprofits from blocks to federal funding they have earned, and to challenge attacks on diversity, equity, and inclusion initiatives. The National Council of Nonprofits is hosting this informational webinar to explain the current legal landscape and to highlight how philanthropic leaders are acting with urgency in supporting nonprofits during this difficult period. We’ll conclude with actionable steps nonprofits and all who support the charitable sector can take. Register to attend live Register to receive the recording only
    General FAQs on Executive Actions Impacting Nonprofits
    UPDATE: Executive Orders Affecting Nonprofits
    Additional National Council of Nonprofits Resources

  • Trump issues NEW memo to Review, Defund Nonprofits and NGOs

    President Donald Trump has issued a new memo directing U.S. agencies to reevaluate financial support for nongovernmental organizations (NGOs). Citing concerns that some NGOs “actively undermine the security, prosperity, and safety of the American people,” the memo mandates that federal funding decisions align with his administration’s priorities.

    Specifically, the request is for future funding decisions to align with issued executive orders—potentially impacting grants that support critical humanitarian aid, development programs, and capacity-building initiatives both within the United States and abroad.

    Below is a copy of the memo, along with answers to key questions regarding this new guidance. We will continue to monitor developments and provide updates to nonprofits as appropriate.

    Below is a full copy of the memo:

    SUBJECT:     Advancing United States Interests When Funding Nongovernmental Organizations

    The United States Government has provided significant taxpayer dollars to Nongovernmental Organizations (NGOs), many of which are engaged in actions that actively undermine the security, prosperity, and safety of the American people. It is the policy of my Administration to stop funding NGOs that undermine the national interest.

    I therefore direct the heads of executive departments and agencies (agencies) to review all funding that agencies provide to NGOs.  The heads of agencies shall align future funding decisions with the interests of the United States and with the goals and priorities of my Administration, as expressed in executive actions; as otherwise determined in the judgment of the heads of agencies; and on the basis of applicable authorizing statutes, regulations, and terms.
    Here are some explanations related to this memo:

    What is an Executive Order, and what are its powers and limitations?  An executive order is a directive issued by the U.S. President that manages operations within the federal government. It has the force of law but does not require congressional approval. Presidents use executive orders to direct federal agencies, enforce laws, or set policies.

    Powers: Can direct federal agencies on how to enforce laws. Can influence policy areas like immigration, labor, national security, and foreign aid. Can be issued quickly without congressional approval.

    Limitations: Must Be Based on Existing Law – The President cannot create new laws, only direct how existing laws are implemented. Can Be Overturned by Congress – Congress can pass a law overriding an executive order, though the President can veto it. Can Be Challenged in Court – Courts can strike down executive orders if they are unconstitutional or exceed executive authority. Can Be Reversed by Future Presidents – New administrations can revoke or replace previous executive orders.

    Nonprofit vs. Nongovernmental Organization A nonprofit organization is a nongovernmental organization and is the term used globally to describe what the United States refers to as nonprofit organizations. Opinion: This memo is likely targeted at nonprofits in the United States working with refugees and other non-citizens and nonprofits funded by USAID to support foreign aid.

    What is USAID? The United States Agency for International Development (USAID) is the U.S. government agency responsible for providing foreign aid and development assistance. It works to promote global economic growth, democracy, humanitarian aid, health, and disaster relief in partner countries to support U.S. foreign policy and national security goals.

    How is this different than the previous memo targeting nonprofit funding? The previous memo from President Trump paused all federal funding on contracts, which a federal judge blocked, and the memo was ultimately rescinded. This new memo makes recommendations for future funding; however, there are no measures for alignment.

    Opinion: The President can make recommendations for a budget, but it is ultimately the power of Congress (Senate and House of Representatives) to determine appropriations. Unilaterally, the President cannot make budgetary decisions or change funding guidelines.  
  • Amid Executive Orders: What Nonprofits Need to Know

    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

  • Why Nonprofits Must Embrace Lobbying Now More Than Ever

    Nonprofits are often the unsung heroes of our communities. They feed the hungry, shelter the homeless, advocate for the voiceless, and fill the gaps where government services fall short. Despite this essential work, many nonprofits shy away from lobbying—a tool that could significantly amplify their impact. Misconceptions about what lobbying entails, fear of violating nonprofit regulations, and a culture of “staying in the lane” of service delivery often hold organizations back. But at a time when public policies increasingly shape the environments in which nonprofits operate, lobbying is no longer optional—it is a necessity.

    Why Nonprofits Avoid Lobbying

    For many nonprofits, the decision to avoid lobbying stems from fear and misunderstanding. The perception persists that lobbying could jeopardize a nonprofit’s tax-exempt status. While 501(c)(3) organizations are prohibited from engaging in partisan political activity, the IRS permits nonprofits to engage in limited lobbying, provided it does not constitute a “substantial part” of their activities.

    Yet, this allowance is often overshadowed by a cautious culture that prioritizes neutrality. Many organizations believe their role is to provide services, not engage in advocacy. Others worry about alienating donors or board members by taking a stand on divisive issues. And some simply lack the capacity or expertise to navigate the complexities of government relations.

    Why Nonprofits Should Lobby

    Nonprofits exist to solve problems, and many of those problems are rooted in systemic issues that only public policy can address. Lobbying is not just about securing favorable legislation; it’s about creating a more just and equitable society. When nonprofits lobby, they bring the voices of the communities they serve directly to policymakers, ensuring that laws and budgets reflect real needs.

    Consider the impact of policies on funding streams, regulations, and program delivery. A nonprofit addressing food insecurity might feed hundreds of families through direct services, but by lobbying for expanded food assistance programs or reduced barriers to SNAP benefits, they can affect millions. Advocacy transforms nonprofits from reactive responders to proactive changemakers.

    Why Now Is the Time

    The urgency to lobby has never been greater. Governments at all levels are grappling with economic challenges, climate change, healthcare inequities, and social justice issues—many of which disproportionately affect the populations nonprofits serve. Policies enacted today will shape the nonprofit landscape for years to come.

    Moreover, a growing anti-democratic sentiment threatens to silence marginalized voices. Nonprofits have a unique responsibility to counteract this trend by ensuring their communities are represented in policy discussions. Lobbying is one way to push back against policies that exacerbate inequality or undermine the public good.

    Federal and state budget decisions are particularly critical. Nonprofits reliant on government grants or contracts must advocate for adequate funding. Silence in these discussions risks cuts that could devastate entire sectors.

    How Nonprofits Can Start Lobbying

    For nonprofits unaccustomed to lobbying, the first step is understanding the rules. The IRS provides clear guidelines, and resources like the “H-election” option allow nonprofits to elect to measure lobbying expenditures under a more straightforward framework.

    Building coalitions is another effective strategy. Joining forces with other organizations amplifies collective impact and distributes the workload. Local, state, and national nonprofit associations often offer training, resources, and opportunities for collaboration.

    Finally, nonprofits must integrate advocacy into their missions. This requires buy-in from boards, staff, and stakeholders who understand that lobbying is not a distraction from service delivery but an extension of it.

    A Call to Action

    Lobbying is not just a right—it’s a responsibility. Nonprofits are uniquely positioned to advocate for policies that promote justice, equity, and sustainability. By embracing lobbying, nonprofits can ensure that their missions extend beyond services to tackle the systemic causes of the issues they address.

    In North Texas in 2023, the nonprofit lobbying expenses for over 26,000 nonprofits only amounted to $1.3 million of the approximate $27.32 billion. To change this, the North Texas Nonprofit Institute hosted a Nonprofit Advocacy & Lobbying Webinar Series in early 2024. As a result of the resent elections, the institute has made these resources freely available until the end of the year.

    The stakes are too high to remain silent. It is time for nonprofits to step into their power and use every tool available—including lobbying—to create the change our communities so desperately need.

  • Giving USA 2021 – Charitable giving is up, arts organizations need support to recover

    The unprecedented times of a global pandemic resulted in unprecedented giving in 2021, with Americans distributing over $471 billion to charity in 2020 according to Giving USA 2021 – a 5.1% increase over 2019. Contributions increased from individuals, foundations, and bequests, but corporate giving went down 6.1% compared to 2019.

    Unsurprisingly, giving to organizations providing human services increased by 9.7% and a decline of 7.5% to arts, culture, and humanities organizations-likely due to the cancellation of events and performance, which is the primary source of giving and revenue for arts organizations.

    Giving is increasing much in part to the charitable giving of billionaires who saw their wealth skyrocket throughout the pandemic. Major gifts from billionaires, including MacKenzie Scott, former wife of Amazon founder Jeff Bezos, and Jack Dorsey, co-founder of Twitter, assisted with the overall increase in giving. Between individual giving (69%) and bequests (9%), individuals account for 78% of total giving, with foundations (9%) and corporations (4%) rounding out total giving. This is the largest amount of bequests recorded by Giving USA; therefore, nonprofits might want to consider how their planned giving programs are structured or work with their local community foundations to learn more about their planned giving process.

    North Texas is home to nearly 700 arts organizations. Whether it is attending a performance, visiting a museum, or purchasing gifts from local artisans, we must support our local arts organizations as part of ongoing recovery efforts if we want them to survive.

    Arts organizations: Be sure to share your news with us at DFW501c.com and submit your upcoming events to the free DFW501C Nonprofit Business Journal Calendar.

    You can purchase a copy of Giving USA online, or download the infographic for free, to learn more about charitable giving within the United States.

  • Potential for Donor-Advised Funds (DAFs) policy reform…Again

    Donor-advised funds have been of debate within state and federal politics for many years, with various attempts to regulate donor-advised funds (DAFs) to increase their transparency, accountability, and spend down policy. A new attempt to change the policy around DAFs is currently being routed through the United States Senate. Under the proposed Accelerating Charitable Investments (ACE) Act, DAFs would either be allowed to be maintained for 15-years or 50-years. Presently, DAFs can be passed from generation to generation with no requirement that they are spent out over a period of time, or even that a percentage of funds be distributed—unlike the requirement for private foundations to distribute 5% annually.

    Under this proposed Act, community foundations would be exempt from certain provisions which would allow them to continue funding their work in their service regions; however, the Community Foundation Public Awareness Initiative recently issued a statement mentioning “proposals to place restrictions on DAFs – including the latest legislation proposed by Sen. Angus King and Sen. Charles Grassley – are solutions in search of problems.”

    Historically, DAFs were a bread-and-butter service of community foundations, with many donor-advised funds being established by wealthy individuals in lieu of creating a private foundation of their own. Nationally, many community foundations are sustainable because of the investment and management fees they charge to DAFs, meaning that they could sustain operations for other programs such as nonprofit capacity building, community leadership activities, and other community initiatives. A spend-down policy for DAFs could result in more dollars leaving fund sponsors, such as community foundations, but could also create sustainability issues with local philanthropic infrastructure organizations like community foundations.

    Much of the debate around DAFs is the result of wealthy individuals funneling money from location to location. In theory, a business owner can place some of their own company’s stock within a DAF and receive a tax deduction for their generous contribution. In some cases, DAF donors may inflate the price of the stock and receive a significant tax deduction, but when it comes time to distribute funds, the stock value may be significantly less in actual dollars.

    Presently, it appears that many national organizations have been excluded from conversations surrounding DAF reform, with the Community Foundation Public Awareness Initiative urging lawmakers to consider policy changes based on the following criteria: “(1) supported by data, (2) address real problems, (3) do not significantly increase administrative costs for smaller DAF sponsors (e.g., community foundations in small towns and rural areas, many of which manage charitable assets under $20 million), (4) do not artificially restrict our ability to address problems in our communities.”

    The United Philanthropy Forum has issued a letter from many philanthropy service organizations around the country calling for the philanthropic sector to be included in these discussions on policy reform. While many proposals to reform charitable giving have failed in the past, proposed donor-advised fund legislation has increasingly been brought to the forefront of policymaking around the nonprofit sector.

    Unfortunately, there still appears to be a lack of overwhelming evidence to support the reform of DAFs—one way or the other. While regulation around DAFs is necessary, as a result of many nonprofit and for-profit entities now managing them, there is one thing that is certain – these debates around regulation will continue.

  • OPINION: A Nonprofit Response to the Legislation Around Critical Race Theory

    COVID-19 was a pandemic that had policymakers assure us that “We are all in this together,” but the recent legislative debate in Texas around Critical Race Theory has signaled that unity appears to only be a means to ends in a public health crisis, but not a priority in other aspects of society. Preventing the discussion of these important topics may lead to many nonprofits having to consider how they pick up the slack in light of the proposed censure on teachers.

    The nonprofit sector has a longstanding history of educational involvement including fighting against educational inequality, advocating for special education services, protesting to desegregate schools, and often serving as guardrails to work alongside educational institutions to provide basic needs, supplement educational support, and aiding to ensure that no one falls through the cracks. From tutoring programs, scholarship initiatives, or fostering the love of reading—education nonprofits have often helped to supplement the education of young people through various programs and services.

    Nonprofits of all kinds have long been doing the work of advocating for racial justice and equality, but they must now seek opportunities to educate their stakeholders and the public on history and how its affects necessitate their existence. The fact the government constantly fails to provide for its citizens is one of the primary reasons the nonprofit sector exists – to pick up where the government cannot, or refuses, to go. Nonprofits must take note of these developments and consider what it may mean for their programming. While many organizations across the country have been striving to incorporate elements of justice, diversity, equity, and inclusion (JEDI) within their programming, there is still a lot of work to be done.

    Napoleon once said, “What is history, but a fable agreed upon?” In essence, what we know about the past is told by those who wrote it—in other words, the only part of history that is often recorded is simply the narrative of the victors. Critical Race Theory is a movement that calls for a revisionist history approach, or the recognition that the main narrative may not be the only story. With many history books used within education often neglecting to include adequate portrayals of slavery, segregation, and racism, supplementary instruction is likely necessary in order to tell the full story—the good, bad, and ugly. When examining the historical timeline of the United States, you can see “Slavery Ended” and “Civil Rights Act” passed, but the before, in between, and after of those pinpoints in history have many implications that are prevalent today (i.e., Black Lives Matter, criminal justice reform, homelessness policies, etc.).

    It appears that many Texas lawmakers are attempting to keep the dead hands of history alive and well in order to maintain the narrative that slavery and racism are in the past. The reality of it is that Ruby Bridges is in her 60s, Rosa Parks passed away in 2005, and Harriet Tubman and Ronald Reagan where alive at the same time in history. The “past” is not a distant of a memory and reconciling that truth with its systemic legacy may now be the gap our sector needs to fill.  

    Critical race theory provides an opportunity to understand history holistically. There is much to be said on this topic but speaking truth to power and seeking to dismantle structural racism is not a single conversation, or a checklist of tasks that must be accomplished—it involves a conscious culture shift that our sector can lead.