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 7 | Executive Action Undermining NGOs

Read TNPA’s press release here.

On February 7, 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.