Nonprofit Executive Order Preparation and Response

As we prepare for anticipated executive action against nonprofits, we’re focuses on coordination, clarity, and collective strength.  Please see below for key resources. 

1. Keep Calm, Carry On! Take a moment to process and breath. 
2. The Executive Branch of the government cannot lawfully alter the tax code or revoke tax status without due process. This excellent. Legal brief outlines, there are administrative, legislative, and judicial processes for challenging tax exemption.  Legal Guidance 
3. The Problem: Recent federal legislation has targeted the status of nonprofits serving vulnerable populations, including Senate Bill 497 (Hagerty, R-TN), which seeks to revoke 501(c)(3) tax-exempt status of organizations aiding undocumented immigrants. HR 9495, introduced in 2024 by Claudia Tenney (R-NY), would have granted the Treasury Secretary unrestricted power to strip away the tax-exempt status of nonprofit organizations deemed “terrorist-supporting organizations” without due process. These measures are designed to block legal and social services to immigrants and asylum seekers by attacking the nonprofits that serve them.
4. The Solution: AB 1318 (Bonta) AB 1318, sponsored by CalNonprofits guarantees that nonprofit organizations in California providing essential services to vulnerable populations can still receive state funding, even if their federal 501(c)(3) tax-exempt status is revoked.  Sign-On Letter
5. Update from SCG Policy Conference 4/22/25:
   • Messaging the Do’s and Don’ts!
   • Nonprofits maintain their 501c3 during appeal/revocation process but cannot accept funds over $1,000 during this time.
   • Donations are still gifts!
   • Nonprofits do not have tax deductibility during appeal process.
   • ACLU & IRS are expected to post new updates this week.
6. Call to Action
   • Board & Staff Alignment
   • Risk Assesment
   • Sign-On Letters
   • Stand with Partners
   • Stay Calm

RESOURCES:

• ACLU- Recording of the April 18 briefing
• Civil Society Letter:  Sign-On Letter
• Legal Guidance: Treats to Tax Exempt Status 4-18-25: Sadler Reiff
• AAGC Message Guidance:  Americans Against Government Censorship (AACG) guidance on expected nonprofit EO
• Personal and Organizational Security 101
• National Council of Nonprofit Resources:
  • Myth vs Reality: Executive Branch Lacks Authority to Target Nonprofit Organizations
  • Impact of Trump Executive Orders
  • Chart on Executive Orders– Updated Regularly
  • A Nonprofit Checklist: Conducting a Risk Assessment for Federal Funding
  • General FAQ’s on Executive Actions Impacting Nonprofits
  • A Nonprofit Checklist: What to Do when Your Federal Grant or Contract is Terminated
• CalNonprofits
  • AB 1318 (Bonta) Sign-On Letter
  • Nonprofit Resilience Under Trump 2.0: Resources
• IECC Advocacy Webpage

Gracias,

Susan Gómez

Chief Executive Officer

Inland Empire Community Collaborative