Recent Developments Affecting the Nonprofit Sector
Recent appointments to key government positions and pending legislation are creating a new landscape for nonprofit organizations that seem to be aligning with Project 2025. Despite saying “I have nothing to do with Project 2025” on the campaign trail, the reality is becoming clear that this ‘distance’ can be measured in millimeters – not miles.
Project 2025 AI Impact Assessment Tool for Nonprofits
In response to recent developments and growing concern within the nonprofit sector, CauseWriter.ai has developed a free AI-powered impact assessment tool to help organizations understand and prepare for potential changes under Project 2025 initiatives. This tool, built on GPT-4o-mini, serves as an AI consultant that can analyze your organization’s specific programs and activities, identifying areas that may require additional attention or preparation. By processing your nonprofit’s website or program documents, it provides customized strategic guidance based on the comprehensive 922-page Project 2025 blueprint and recent administrative appointments.
How Project 2025 will hurt your nonprofit (CauseWriter.ai Chat)
Custom AI tools for nonprofits by CauseWriter.ai
Key Administrative Changes Aligned with Project 2025
Key Project 2025-related appointments made by Trump after winning the November 5, 2024 election:
- Russell Vought
- Position: Director of Office of Management and Budget (requires Senate confirmation)
- Connection: Wrote a chapter on presidential authority for Project 2025
- Previous role: Served as OMB director in first Trump term
- John Ratcliffe
- Position: CIA Director nominee (requires Senate confirmation)
- Connection: Was a Project 2025 contributor
- Previous role: Former Director of National Intelligence under Trump
- Brendan Carr
- Position: Federal Communications Commission Chair nominee (requires Senate confirmation)
- Connection: Wrote Project 2025’s FCC chapter
- Current role: Senior Republican on the FCC
- Stephen Miller
- Position: Deputy Chief of Policy (does not require Senate confirmation)
- Connection: His organization “America First Legal” was initially listed as Project 2025 advisory group until he requested removal
- Previous role: Senior advisor to Trump in first term
- Tom Homan
- Position: “Border Czar”
- Connection: Named contributor to Project 2025
- Previous role: Acting ICE Director under Trump
Legislative Considerations
H.R. 9495, the “Stop Terror-Financing and Tax Penalties on American Hostages Act,” introduces new mechanisms for reviewing nonprofit status:
- Expands authority to terminate tax-exempt status for organizations deemed to support terrorism
- Provides 90-day notice and cure period for organizations
- Grants exclusive jurisdiction to U.S. district courts for challenges
- Creates new oversight processes through Treasury Department
Preparation Strategies for Nonprofits
1. Enhanced Documentation and Compliance
Organizations should strengthen their documentation practices:
- Implement comprehensive activity logging systems
- Maintain detailed records of all funding sources and expenditures
- Document decision-making processes for programs and initiatives
- Create clear audit trails for all financial transactions
- Establish robust vetting procedures for partners and beneficiaries
2. Financial Preparedness
Develop strong financial resilience:
- Maintain minimum 6-month operating reserves
- Diversify funding sources across multiple channels
- Create tiered contingency budgets for various scenarios
- Establish clear financial controls and oversight
- Review and update investment policies
3. Legal Infrastructure
Strengthen legal preparedness:
- Retain specialized nonprofit legal counsel
- Review and update bylaws and governance documents
- Maintain current registrations in all operating jurisdictions
- Document compliance with state and federal regulations
- Create response protocols for legal challenges
4. Operational Resilience
Build robust operational systems:
- Document all standard operating procedures
- Implement cross-training programs for key functions
- Create secure backups of essential records
- Establish clear chains of command
- Develop remote work capabilities
5. Stakeholder Communication
Maintain strong relationships with key stakeholders:
- Create regular board communication protocols
- Develop donor engagement strategies
- Document community impact metrics
- Maintain relationships with peer organizations
- Build media communication plans
6. Risk Management
Implement comprehensive risk management:
- Conduct regular risk assessments
- Update insurance coverage as needed
- Create crisis management plans
- Establish internal controls
- Monitor regulatory changes
Looking Ahead
Organizations should stay informed about developments while maintaining focus on their missions. Key areas to monitor include:
- Changes in federal agency leadership and priorities
- Implementation of new legislation
- Court decisions affecting nonprofit operations
- Shifts in funding patterns and requirements
- Evolution of compliance requirements
Quick Primer on What Project 2025 (for nonprofits)
- Relax child labor restrictions
- Disband the Gender Policy Council created by Biden
- Eliminate diversity, equity and inclusion (DEI) programs across federal government
- Remove terms like “sexual orientation”, “gender identity”, “DEI”, “abortion”, and “reproductive rights” from regulations
- Rename Department of Health and Human Services to “Department of Life”
- Promote a “biblically based” definition of family (married father and mother with children)
- Cut federal funding for gender-affirming care for children and adults
- End CDC data collection on gender identity
- Reverse LGBTQ+ workplace protections based on Bostock v. Clayton County
- Ban CDC from promoting abortion as health care
- Collect detailed data on people who have abortions
- Reverse FDA approval of mifepristone (abortion medication)
- Enforce the 1873 Comstock Act to restrict abortion medication by mail
- Prohibit Planned Parenthood from receiving Medicaid funds
- Remove emergency contraception from ACA contraception mandate
- Eliminate the Department of Education
- Repeal education policies recognizing nonbinary and transgender identities
- End the Public Service Loan Forgiveness program
- Prohibit educators from using students’ preferred names/pronouns without parental permission
- Eliminate Head Start program
- Stop collection of employment data based on race and ethnicity
- Require employers providing abortion benefits to offer equal support for pregnancy/parenthood
