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A Roadmap Through the Latest Executive Orders and How to Respond - Law Firm for Nonprofits

A Roadmap Through the Latest Executive Orders and How to Respond

July 3, 2025 Posted by Casey Summar in Board, News, Nonprofits

Since January 20, 2025, President Trump has issued over 150 Executive Orders (EOs). This post seeks to provide an understanding of EOs generally, resources to monitor the EOs that are most relevant to nonprofits, and recommendations for what actions nonprofits should be taking in response.

What Is an Executive Order?

First, let’s level set: What is an executive order? EOs are signed, written, and published directives from the President that manages the operations of the federal government. Like regulations, they instruct executive agencies as to how to interpret and enforce existing laws.  EOs do not make new laws and do not override existing laws. EOs do not require the approval of Congress, but Congress cannot simply overturn them—only a sitting President can rescind an EO by issuing another EO to that effect.  However, Congress can pass legislation to make it difficult to carry out the order, e.g., by removing funding. Nonetheless, with their directive nature, EOs are consequential given their policy implications, legal risk signaling, and impact on funding and enforcement.

EOs Targeting the Nonprofit Sector

The first EO to analyze is EO 14168, rescinding several EOs passed under President Biden (a common practice of new presidents). The EOs rescinded by EO 14168 had provided protections from discrimination on the basis of gender identity or sexual orientation; advanced equality for lesbian, gay, bisexual, transgender, queer, and intersex individuals; promoted the arts, the humanities, and museum and library services; and revitalized the county’s commitment to environmental justice for all. The rescission of these EOs removed key protections and funding opportunities while deprioritizing these underlying causes going forward.

After rescinding existing EOs, President Trump passed several EOs affecting nonprofits in quick succession on topics including diversity, equity, and inclusion (DEI), federal government operations and funding, immigration, LGBTQ+, environment, faith-based groups, and more. The National Council of Nonprofits has prepared an excellent resource tracking all of the relevant EOs as well as their status as many of the EOs are being challenged in court. That document is being updated frequently: https://www.councilofnonprofits.org/files/media/documents/2025/chart-executive-orders.pdf.   

What Can Nonprofit Organizations Do in These Uncertain Times?

Nonprofit organizations should stop, think, and consider the whole picture. Start with analyzing if and how the federal actions apply to your organization. Does the action affect your funding, beneficiaries, and programs? Is the action legally binding? Has the action been challenged in court, and, if so, what is the status of that challenge? Perhaps designate a board member or committee to follow developments in the law and administrative policies.

Due to the uncertain legal landscape, absent outreach from the federal government specifically requiring that it take action, a nonprofit’s focus should be continued compliance with: (1) Settled federal law; (2) Settled state law in its state of residence; and (3) The organization’s contractual obligations to donors and grantees.

Finally, the best way to predict your legal future is to prepare for it. Here is a brief checklist to get your nonprofit house in order:

  • Make sure your organization has up-to-date policies and follows good governance practices.
  • Have (or establish) a document retention policy and implement it. 
  • Conduct a risk assessment of your organization.
    • Review your governing documents, your programs and services, and all of your communications including your website and your publications.
    • Review the terms of any federal grants and contracts.
    • If a grantmaking organization, review the conditions for grants you make.
  • Increase focus on the Form 990/990PF which generally offers a roadmap of areas of key areas of good governance practices and compliance.

Parting Reassurance

The present moment feels ominous, but it helps to remember that many EOs are the subject of litigation, unfunded, or internally contradictory. Stay calm, know your obligations under existing federal and state law, and continue to comply with best practices. Courts move slowly and unpredictably, meaning the scope and eventual impact of many of these EOs remain subject to change. In the meantime, keep serving your tax-exempt purpose.

NOTE: The information contained herein is not intended to be legal advice and the reader should know that no Attorney-Client relationship or privilege is formed by the posting or reading of this article which is also not intended to solicit business.

Casey Summar, Partner, The Law Firm for Non-Profits,1812 W Burbank Blvd, #7445, Burbank, CA 91506

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