Standing Together: Addressing Potential Threats to Nonprofit Independence

4/30/25 Update: Following up on our recent communication about rumors of potential executive orders targeting nonprofit tax-exempt status, we want to share that news outlets have reported a White House official stating “No such orders are being drafted or considered at this time.” While this statement offers some reassurance, we remain vigilant and continue to closely monitor any policy discussions that could impact the essential independence of our sector.

We reiterate that established legal frameworks and IRS procedures protect 501(c)(3) organizations, with eligibility defined by Congress, not executive preference. We stand firm in our commitment to advocate for philanthropic freedom and will keep you informed of significant developments. We are strongest when we stand together, informed, and united.

Dear MCF Members,

Like many of you, the Minnesota Council on Foundations (MCF) is closely monitoring deeply concerning rumors regarding potential executive orders targeting nonprofit organizations, possibly timed around Earth Day this week. Reports suggest these actions could aim to strip the tax-exempt status of certain nonprofits, including those focused on environmental justice or receiving international funding, using unfounded justifications.

MCF views any such action as a serious and unacceptable threat, not just to potentially targeted organizations, but to the fundamental independence of the entire nonprofit and philanthropic sector. This isn’t just about specific issues; it’s about the core principle that civil society must be free to operate without fear of politically motivated government overreach or retribution, which undermines essential roles within the sector. Such actions set a dangerous precedent for weaponizing government power against organizations based on their mission or viewpoint, regardless of political affiliation.

It’s important to ground ourselves in the legal realities. As resources from the National Council of Nonprofits clarify:

• Eligibility for 501(c)(3) status is defined by Congress in the Internal Revenue Code, not determined by executive preference.

• The President cannot lawfully direct the IRS to investigate or strip status from a specific organization.

• The IRS must follow established procedures and allow for appeals before revoking tax-exempt status.

• Lawful nonpartisan advocacy and work promoting diversity, equity, and inclusion are permissible activities for 501(c)(3) organizations.

Despite these legal guardrails, the rhetoric and potential actions themselves are harmful and intended to chill the vital work of nonprofits in our communities.

Therefore, MCF unequivocally condemns any attempt to intimidate, delegitimize, or punish nonprofit organizations based on their mission or viewpoint. We stand in solidarity with all nonprofits committed to lawfully serving the public good.

MCF is joining and aligning with the national coalition efforts already underway, including partners like the National Council of Nonprofits, Americans Against Government Censorship, Council on Foundations, Independent Sector, and United Philanthropy Forum. We are actively participating in monitoring developments, sharing information, and advocating for the protection of nonprofit independence and nonpartisanship.

We urge you, our members, to take action:

• Show Your Solidarity (Choose one or both):
  • For Foundations: Consider adding your foundation's name to the national “A Public Statement from Philanthropy” coordinated by the Council on Foundations. View and sign on here: A Public Statement From Philanthropy.
  • For All Nonprofits: Consider adding your organization’s name to the “Open Letter Rejecting Presidential Attacks on Nonprofit Organizations.” View the letter text and sign on using this form: Open Letter Sign-On Form.
• Stay Informed: Continue monitoring updates from MCF and trusted national partners.
• Ground Yourself in Facts: Review the “Myth v. Reality” factsheet from the National Council of Nonprofits regarding executive authority limitations: NCN Myth v. Reality Factsheet. 
• Discuss Internally: Engage your leadership and boards in conversations about the potential implications and reaffirm your foundation’s commitment to philanthropic independence.
• Connect with Grantees: Be prepared to listen to and support your grantees who may feel targeted or vulnerable.
• Share Resources: Help strengthen this effort by sharing the NCN factsheet and solidarity statements with your networks.

We also recommend that organizations review their governance documents, ensure compliance records are up-to-date, and prepare brief talking points about your organization’s public benefit for stakeholders.

MCF will continue to serve as a resource and convener for Minnesota’s philanthropic community during this period. We will share relevant updates, legal analyses, and guidance as the situation evolves. Our sector is resilient, and we are strongest when we stand together, informed and united.

In solidarity,

The Minnesota Council on Foundations