Let me start with something important: executive orders are not laws.
I know you know this intellectually, but when you’re watching federal agencies scramble, seeing funding freeze memos, and hearing about organizations losing grants overnight, it’s easy to forget this fundamental fact.
So let’s take a breath, grab our coffee, and talk about what’s actually happening—and what you should actually do about it.
What Executive Orders Actually Are
Here is how it is supposed to work:
An executive order is the President directing federal agencies on how to implement existing laws. That’s it. The President can’t create new crimes, can’t appropriate money Congress hasn’t authorized, and can’t override laws Congress has passed. At least technically.
Think of it this way: Congress passes a law saying “federal agencies shall promote workplace safety.” An executive order might say, “and here’s exactly how I want you to do that—focus on construction sites first, report monthly, prioritize X over Y.”
The executive order doesn’t change the underlying law. It changes how the executive branch interprets and implements it.
This year, executive orders have stretched the norm and run counter to current law and practices.
Why This Matters for Nonprofits Right Now
Since January 2025, the Trump administration has issued dozens of executive orders affecting everything from DEI programs to immigration to federal grant-making. Many of these orders direct federal agencies to review their programs and ensure they align with the administration’s priorities.
Here’s what’s happened in practice:
The Funding Freeze Drama: In late January, the Office of Management and Budget sent a memo halting the distribution of all federal grants and loans. Organizations panicked. Then a federal judge issued a temporary restraining order blocking the freeze. Then OMB rescinded the memo. All within days.
This is what uncertainty looks like in real time.
The DEI Elimination Orders: Executive orders directed agencies to shut down DEI offices and eliminate DEI programming. Nonprofits with DEI missions or federal contracts suddenly faced scrutiny. One common question I see in nonprofit social media groups is, “How do I write a grant without these DEI words?”
The Immigration Enforcement Push: Orders directing aggressive immigration enforcement and blocking funding to sanctuary cities have implications for nonprofits serving immigrant communities. In my own community, ICE agents have been on many streets and in front of public places, taking people, many of whom are citizens. This has led many people to stay home and avoid areas that once felt safe.
The Panic Mode Problem
Here’s what I’m seeing: a lot of young nonprofits going into full panic mode.
I get it. When you’re two years old, running on fumes, and suddenly your federal grant is in question, panic feels appropriate. But panic isn’t strategic, and it’s definitely not sustainable.
Panic mode symptoms I’m seeing:
- Scrubbing websites of any “trigger words” without understanding why
- Changing mission statements reactively
- Making staff cuts preemptively “just in case”
- Freezing all operations while waiting to see what happens
- Sending mixed messages to donors and community members
Here’s the thing: some caution is warranted. Full panic is not.
What Young Nonprofits Should Actually Do
1. Understand Your Actual Risk Level
Not every executive order affects every nonprofit. Ask yourself:
- Do you receive federal funding? If not, many of these orders don’t directly touch you.
- If yes, which agency? What program? Some programs are more scrutinized than others.
- What’s your mission focus? Orders have specifically targeted DEI programs, environmental initiatives, reproductive health, and immigration services.
If you’re a local food bank with no federal money, you’re probably fine. If you’re running a federally-funded DEI training program, you need to pay closer attention.
No matter what, stay aware of the changing landscape.
2. Don’t Make Permanent Changes to Temporary Situations
Executive orders can—and are—being challenged in court. The next administration can rescind them. They can be modified or clarified.
The National Council of Nonprofits has filed lawsuits challenging some of these orders, and multiple other legal challenges are ongoing.
Before you fundamentally change your mission or programs, consider:
- Is this change truly necessary for survival?
- Could we make temporary adjustments instead?
- What happens if the political landscape shifts in 2 or 4 years?
3. Get the Real Information
Stop relying on panic-inducing social media posts. Get your information from:
- The National Council of Nonprofits, which maintains updated tracking of executive orders affecting nonprofits
- Your state association of nonprofits
- Direct communication from your federal funding agency
- Legal resources (many bar associations offer pro bono help)
If you have federal grants, you should have gotten direct communication from your program officer. If you didn’t, call them. Ask specific questions about your specific grant.
4. Assess, Then Act
If you haven’t already, create a simple risk assessment:
High Priority Actions (do these now):
- Review all federal funding agreements for compliance requirements
- Don’t miss any reporting deadlines
- Document your current programs and how they align with your mission
- Strengthen relationships with non-federal funders
- Join relevant coalitions or associations for collective intelligence
Medium Priority (do within 30-60 days):
- Develop a funding diversification strategy
- Review and potentially adjust language in pending grant applications
- Train staff on talking points for community questions
- Consider scenario planning for different funding outcomes
Low Priority (only if truly necessary):
- Fundamental mission changes
- Major program eliminations
- Preemptive staff reductions
5. Lead With Calm Competence
Your community is watching how you respond. Your staff is looking to you. Your donors want to know you’re stable.
The organizations that will survive this are the ones that can say: “Yes, we’re monitoring the situation. Yes, we’re being strategic. No, we’re not panicking. Here’s what we know, here’s what we’re doing, and here’s how we’re staying true to our mission.”
The Special Challenge for Young Nonprofits
If you’re in years 1-5, this is particularly hard because:
- You probably don’t have cash reserves to weather funding gaps
- Your funding is likely less diversified
- You may not have experienced leadership who’s been through previous transitions
- Your systems and infrastructure may not be robust enough to pivot quickly
But here’s what you DO have:
- Agility—you can move faster than established organizations
- Direct community connection—you know what your people need
- Passion—you started this thing for a reason
- Less bureaucracy—decisions don’t require seventeen committee approvals
Use these advantages. Don’t let panic erase them.
What “Waiting It Out” Actually Means
Some folks are advocating for “just wait and see what happens.” I have mixed feelings about this.
Waiting it out makes sense when:
- Taking action now would be premature or irreversible
- You have the financial cushion to wait
- Waiting allows you to gather better information
Waiting it out is dangerous when:
- It becomes an excuse for inaction
- You’re ignoring obvious warning signs
- Your funding is genuinely at risk, and you need alternatives
- It prevents you from having necessary conversations with stakeholders
The middle ground? Strategic patience. Stay informed, plan scenarios, strengthen your foundation, but don’t make fear-based decisions on incomplete information.
Bottom Line
Executive orders are real. Their impacts can be significant. But they’re not laws, they’re not permanent, and they’re not the apocalypse. I know, it might feel that way some days.
Your job as a nonprofit leader is to:
- Stay informed without staying panicked
- Assess your actual risk, not hypothetical worst-case scenarios
- Make strategic adjustments where truly necessary
- Keep serving your mission
- Lead your organization with clear eyes and a steady hand
The organizations that will thrive through this transition aren’t the ones that never felt fear. They’re the ones who felt the fear and led strategically anyway.
You’ve got this. And you don’t have to figure it out alone.
Dealing with uncertainty around federal funding or executive orders? Let’s talk strategy over coffee (virtual or otherwise). Book a free call and we’ll figure out your next steps together.
