If your organization receives federal grants or works with government agencies, you're already in the spotlight. And even if you don't, the ripple effects of new federal DEI policies will likely reach your organization sooner than you might think. Here's what's happening and what you need to do about it.
Why This Matters Right Now
The federal government just dramatically changed how it approaches diversity and inclusion programs. While these changes started with federal agencies, they're already affecting nonprofits and social good organizations – especially those receiving federal funding. And there's more scrutiny coming.
We recently sat in on a critical webinar hosted by United Philanthropy Forum, Council on Foundations, Independent Sector, and the National Council of Nonprofits that brought together key sector leaders to break this down. Here's what the experts want you to know.
The Experts Are Saying This Is Different
United Philanthropy Forum's Executive Director Debora Aubert Thomas laid out why this moment matters: Yes, the fundamental anti-discrimination laws haven't changed. But the way they're being interpreted and enforced? That's a whole new ballgame.
Legal expert Emily Cuneo DeSmedt, an attorney at Morgan Lewis, put it bluntly during the webinar: any organization that's an employer needs to pay attention to this order. It could affect everything from your grant applications to your website content to your internal memos.
Here's What You Really Need to Know
The biggest change isn't in the law itself – it's in how your organization might be scrutinized. Think of it this way: your mission isn't illegal, but how you talk about it and implement it matters more than ever.
Three things that aren't changing:
Your right to advance equity and diversity
Basic civil rights protections
Your ability to serve diverse communities
But here's what is changing:
How closely your programs will be examined
What you need to document
How you should communicate about your work
The risk of legal challenges
What To Do Right Now
The philanthropic sector is facing significant changes with new executive orders affecting how organizations approach diversity, equity, and inclusion programs. For nonprofits and social good organizations, especially those receiving federal funding, understanding these changes and how to respond effectively is crucial.
While the immediate impact falls on federal agencies and contractors, these changes signal a broader shift that could affect organizations across the sector. Here's what you need to know to maintain your mission while adapting to new requirements. Understanding how to continue this work effectively in the current environment is crucial.
Program Documentation
Clearly articulate how your programs serve the entire community
Document your impact using objective metrics
Maintain comprehensive records of program outcomes
Review measurement and evaluation systems
Communication Review
Assess external and internal messaging
Review grant applications and reports
Evaluate public-facing materials
Document program objectives and results
Organizational Preparation
Build strong community partnerships
Strengthen impact measurement
Maintain clear documentation practices
Focus on mission-aligned outcomes
The goal isn't to change your mission, but to ensure your important work can continue effectively in this new environment. As we've seen with recent cases, preparation and documentation matter more than ever.
The Tricky Parts
Here's what makes this complicated: organizations that get federal money or might want it someday need to be extra careful. The new rules mean you could face:
Investigations into your practices
Challenges to your grant eligibility
Questions about your programs
Scrutiny of your communications
What Smart Organizations Are Doing
The savviest nonprofits are:
1. Getting legal advice about their specific situation
2. Updating their documentation practices
3. Training staff on new communication guidelines
4. Building stronger community partnerships
What You Can Do Today
1. Review your materials with fresh eyes
2. Document your impact more carefully
3. Connect with other organizations in your sector
4. Consider getting legal advice
Remember This
Your mission isn't the problem. Having goals around equity and diversity isn't illegal. What matters is how you implement and communicate about your work.
Where to Get Help
The landscape is changing fast, but you're not alone. Resources are available:
United Philanthropy Forum continues to provide updates
Professional associations are developing guidance
Legal experts are creating new frameworks
Peer organizations are sharing strategies
Executive Orders
Stay connected and in communication with your communities and partners. Share, discuss, and collaborate to ensure every organization has the best chance to thrive. Start preparing now, even if you think your organization might not be directly affected yet. Because in this new environment, it's better to be ready than caught off guard.
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