From Nonprofit Quarterly <[email protected]>
Subject The Threat Returns
Date May 20, 2025 3:01 PM
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** Leadership
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Greetings, readers!

This week’s Leadership newsletter leads with the return of a major legislative threat ([link removed]) to our sector. This time it appeared as part of proposed GOP-led tax legislation that would allow the US treasury secretary to unilaterally strip any nonprofit of its tax-exempt status if deemed to be a “terrorism supporting organization”—an undefined phrase that could allow the Trump administration to target nonprofits whose work, values, or mission doesn’t align with the president’s agenda. If this sounds familiar, that’s because HR 9495 ([link removed]) , introduced in the House last year, would have done essentially the same thing. Since last week, advocacy efforts have pushed House Republicans to remove that provision from their new bill (for now), but we are watching closely.

We follow that news with a call to action ([link removed]) by the president and CEO of the National Committee for Responsive Philanthropy, Aaron Dorfman, who urges philanthropic leaders and funders to do more in the face of authoritarianism to support the nonprofit sector.

Then, NPQ Staff Writer Rebekah Barber explores ([link removed]) how foundations are responding to federal funding cuts and how those cuts are changing the historic relationship between foundations and government.

Finally, and very much apropos, we invite you to attend next week’s premium webinar, ([link removed]) “Ask the Nonprofit Lawyer.”

As always, we thank you for your time and attention and welcome feedback, pitches, and general correspondence.

Sincerely,

Isaiah Thompson
Leadership Editor
[email protected] (mailto:[email protected])
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Tax Provision Would Give Trump Administration Unilateral Power to Strip Nonprofit Status ([link removed])
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By Rebekah Barber and Isaiah Thompson
“This tax bill introduced by House Republicans is a direct assault on organizations that serve the most vulnerable Americans.” Read more… ([link removed])

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How to Fend Off Attacks on Nonprofits—Three Key Strategies ([link removed])
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By Aaron Dorfman
“[Keeping our heads down] won’t save us. As foundation leaders Tonya Allen, Deepak Bhargava, and John Palfrey asked us to do, we must unite in advance.” Read more… ([link removed])

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Why the Threats Against Nonprofit Tax Status Are Unprecedented ([link removed])
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By Rebekah Barber
“During the early years of the Ronald Reagan administration, those in the nonprofit sector were concerned about the loss of federal funding, but they did not also have to worry about attacks on their tax-exempt status.” Read more… ([link removed])

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**
May Premium Webinar: Ask the Nonprofit Lawyer ([link removed])
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Understanding your legal rights and risks is foundational to nonprofit survival at this time of heightened scrutiny and threats. But legal support can be expensive to find and retain. That’s why NPQ is bringing you one of the country’s most experienced nonprofit attorneys, Jeffrey Tenenbaum of Tenenbaum Law Group, based in Washington, DC, to answer your questions on timely legal and compliance questions facing staff leaders and boards of directors. Register for the webinar ([link removed]) , and take advantage of discounted early bird registration through May 23.

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