This page documents The Nonprofit Alliance’s ongoing efforts to protect the independence, integrity, and mission of the nonprofit sector from political interference and unwarranted targeting. Here you’ll find updates on our advocacy work with Congress, our monitoring of legislative and executive actions that threaten nonprofit operations, and our response to policies that undermine the sector’s ability to serve communities. We track critical developments, from tax policy changes affecting charitable giving to attempts at politically-motivated revocation of tax-exempt status, and detail our bipartisan engagement to defend the legal frameworks that allow nonprofits to operate free from political pressure. This resource serves as both a transparency tool for our members and stakeholders and a call to action to preserve the nonprofit sector’s essential role in American civic life.

Democrats Launch Inquiry into the IRS

On April 14, Rep. Lloyd Doggett (D-TX), Ranking Member of the House Ways & Means Health Subcommittee, and Rep. Terri Sewell (D-AL), Ranking Member of the Ways & Means Oversight Subcommittee, “led most Ways and Means Committee Democrats in demanding immediate answers from IRS Chief Executive Officer Frank Bisignano on reports that the IRS has compiled a list of Democratic donors and “left-leaning” nonprofit organizations, and is moving to label these groups as domestic terrorists.” See the full press release here. The letter to the Chief Executive Officer of the IRS may be found here, which details specific questions for response by April 29.

The letter expands on previously raised concerns about the administration’s rhetoric and policy announcements around weaponizing the IRS against nonprofit organizations and those that may disagree with the administration’s actions. The Nonprofit Alliance has raised some of these concerns as well and will continue to message the imperative of a non-partisan Internal Revenue Service.

Johnson Amendment

Johnson Amendment Court Case Update:

The March 31 decision by United States District Judge J. Campbell Barker, United States District Court for the Eastern District of Texas, tossed out the proposed settlement between the IRS and religious organizations. In the ruling, the judge concluded that the agreement reached was not in keeping with existing law. The appeal process is expected to move forward. See the Nonprofit Times article for additional information.

Overview

The press has drawn considerable attention to the Internal Revenue Service’s court filing that supports a narrow exception to the Johnson Amendment for religious organizations. The Johnson Amendment was passed by Congress in 1954 and prohibits charities and churches from engaging in political campaign activity. The immediate effect of the case is limited to two churches in Texas (the named plaintiffs) and permits political endorsements so long as they occur in the usual course of communications with congregants. However, there is widespread concern and debate that the permission could subsequently be applied to 501(c)(3) organizations more broadly.

Action Alert: Proposed Rule for Federal Funding Recipients

The U.S. General Services Administration has proposed a new rule that would require all federal funding applicants to sign new certifications under penalty of civil and criminal law when registering or renewing in System for Award Management (SAM.gov), the federal portal used to apply for and manage federal funding. The certifications are tied to executive orders and federal guidance on issues including DEI, immigration, and terrorism.

Why This Matters to You

If implemented, this rule could:

• Create legal and compliance uncertainty for nonprofits
• Expose organizations to audits or investigations based on vague standards
• Result in increased scrutiny of the nonprofit sector
• Disrupt services, particularly those serving minority communities

What You Can Do

1. Submit public comment by March 30. Suggested issue areas to highlight include:

• Lack of clarity for nonprofits regarding their compliance requirements
• Concerns about aligning with the Department of Justice guidance and executive orders on DEI
• Risks of legal harassment and wasted organizational resources responding to investigations
• Expected disruptions to essential nonprofit services.

2. Sign the national coalition letter opposing this rule by March 30.

TNPA will continue to provide updates to our members on this important issue.

Targeting of the Nonprofit Sector

On October 15, 2025, The Wall Street Journal reported on detailed plans for changes at the IRS, which would include installing administration allies at the IRS criminal-investigative division, weaken the involvement of IRS lawyers in criminal investigations, and potentially target specific left-leaning groups and donors. This represents a dangerous politicization of regulatory power. See more of Shannon McCracken’s response here.

Members of Congress are responding to these reports, notably with this letter from 14 U.S. Senators to the IRS senior leadership, raising concerns about these plans.

The September 25, 2025, Presidential Memorandum titled “Countering Domestic Terrorism and Organized Political Violence” raises significant concerns for nonprofit organizations that echo earlier troubling policy actions and rhetoric taken by this administration and Congressional legislative actions. The memo describes a new National Joint Terrorism Task Force (JTTF) and a resulting law enforcement strategy. The JTTF will investigate participants in “criminal conspiracies” with little justification for how such organizations or participants would warrant such scrutiny. See TNPA’s full statement by Shannon McCracken here.

While this Presidential memo does not represent a legal change, the memo and the planned changes at the IRS are the latest examples of the unwarranted targeting of the nonprofit sector. TNPA continues to raise awareness and concerns through engagement with policymakers, media engagement, and public statements.

July 25, 2025 | Rescissions Package Signed into Law

The $9 billion rescissions package passed the Senate on July 17, the House on July 18, and was signed into law by the President. The funding was primarily for foreign aid and public media. Senators adopted a Republican substitute to take out a $400 million rescission for PEPFAR (President’s Emergency Plan for AIDS Relief) but other amendments to weaken the scope of the overall package failed.

July 4, 2025 | The Tax & Spending Bill Becomes Law

The tax and spending legislation, originally titled “One Big Beautiful Bill,” was signed into law at the White House on July 4 with a number of provisions impacting the broad nonprofit sector. Read our Tax Reform & Charitable Giving: What It Means for Your Organization and Donors blog post for more details. 

April 22, 2025 | The Threat of Politically-Motivated Revocation of Tax-Exempt Status

The Nonprofit Alliance would strongly oppose any executive order or action that would revoke the 501(c)(3) tax-exempt status of nonprofit organizations based on their misalignment with a current administration’s priorities or values. Such an act would:

• Allow the executive branch to unilaterally penalize organizations without due process, bypassing established legal frameworks
• Create a mechanism for labeling legitimate community organizations as problematic without evidence or judicial review
• Circumvent legislative authority by using executive power to redefine tax exemption criteria established by Congress

The real impact of such action would be felt in communities across America where nonprofits provide essential services. Organizations could be targeted for working with populations or on issues that an administration finds politically inconvenient, and be forced to reduce essential programs and services, reduce operational capacity, divert resources to legal challenges rather than mission fulfillment, and potentially close entirely, creating service gaps in vulnerable communities.

Just as it was wrong in 2013 when the IRS used keywords like “Tea Party” to select organizations for additional scrutiny, an action such as this would institutionalize the weaponization of government authority. It would create a system where any administration could label organizations they disagree with as problematic without substantive proof, and establish a dangerous precedent that could be expanded by future administrations to target an ever-widening circle of organizations.

Tax-exempt status is a legally defined classification, not a political tool that changes with each administration.

The nonprofit sector’s strength lies in its ability to address community needs independently of political pressures.The Nonprofit Alliance believes that presidential administrations must respect the established legal framework governing nonprofit organizations. We urge all federal officials to uphold the sector’s independence from political interference and protect the vital services nonprofits provide in communities nationwide.

February 6, 2025 | Executive Action Undermining NGOs

Read TNPA’s press release here.

On February 6, the White House issued an executive action ordering federal departments to stop funding nongovernmental organizations (NGOs) that, in the administration’s opinion, undermine the national interest. The heads of executive departments and agencies are ordered to review all funding to NGOs to align future funding decisions based on the current administration’s priorities.

The Nonprofit Alliance strongly opposes the executive action, which casts a baseless and harmful shadow over the work of NGOs at home and abroad. These organizations are on the front lines addressing critical issues such as disaster relief, public health, education, and human rights—work that aligns with the values and principles of the American people.

Labeling NGOs as undermining national interests while tying funding decisions to undefined and shifting political priorities jeopardizes essential services and vulnerable communities that rely on them. This action introduces uncertainty and political bias into a funding process that should prioritize impact and accountability above ideology.

The nonprofit sector has long been a trusted partner in advancing American values, supporting security, and fostering global stability. We urge the administration to reconsider this misguided policy and instead focus on strengthening the vital partnerships between government and NGOs that serve the best interests of the nation and the world.