You may be seeing headlines about a potential executive order targeting the tax-exempt status of climate and environmental nonprofits. While the chatter may feel unsettling, the facts—and your response—matter most right now. This email is primarily written for nonprofits in the climate space. If you’re a donor, board member or supporter to one, you should know what’s happening too. If not, please share with others in the space. Let’s go!

TL;DR: What You Need to Know and Do

  • ✅ No executive order can revoke your 501(c)(3) status. Federal law requires individual IRS audits, due process, and appeal rights. But it doesn’t mean they won’t try. 

  • 🔍 Double-check your legal operations. Ensure your compliance,  digital security, financial resilience, and governance practices are solid.

  • 💬 Communicate clearly and consistently. Acknowledge what you do and don’t know and what your donors, board members, and supporters can expect from you.

  • 💸 Fundraise actively. This is a moment to lean into—not pause—your fundraising.

  • 🧭 Stay grounded in your mission. Let your purpose guide your voice and your next steps.

Legal Reality Check

As experts from The NonProfit Times and Bloomberg Law affirm, there is no lawful mechanism for the President or any agency to revoke a nonprofit’s federal tax-exempt status by executive order.

“Those procedures require individual IRS audits… with ample opportunity for the entity to defend itself.” – The NonProfit Times

How to Respond Thoughtfully and Proactively

1. Crisis Communication Matters

  • Stay calm, clear, and consistent. Your tone should reflect steady leadership—not fear or speculation.

  • Communicate what you know, what you don’t yet know, how you’re monitoring, and what your mission is always doing.

  • Use the channels that work best for your audience—email updates, personal outreach, or status calls.

  • This is a critical moment to build trust and invite support—not to wait quietly. More here: Navigating Crisis Communication and Funding Uncertainty

Make this a moment to invite your community to support rather than unintentionally alienating those who aren’t aware or see the issue exactly like you do.

The environmental and climate challenges you’re working to solve are why your organization exists—not a distraction from this moment, but the reason you lead through it. Avoid overly politicized responses or legal speculation in your messaging. Stay clear, factual, and focused on your mission. Your credibility—and your ability to reach a broad range of supporters—depends on it.

2. Talk to Your Donors (and Listen Too)

For foundations, stay in frequent contact with your program officers:

  • Learn how they’re being impacted

  • Share how you’re preparing or responding

  • Explore how you can support one another

For individual donors, remember two essential truths:

  • 75% of all philanthropic gifts come from individuals

  • Why do people donate? Because they are motivated by impact and they were asked by the right person!

Your funders want to help. Tell them how. Times of uncertainty call for proactive fundraising, not pause. You can—and should—communicate needs like:

  • Strategic communications support

  • Legal review or readiness costs

  • Digital security upgrades

  • General operating funds for flexible funding

3. Strengthen Revenue Resilience

In addition to fundraising, now is a smart time to evaluate complementary revenue sources, such as:

  • Program-related investments (PRIs)

  • Low-cost loans or capital commitments

  • Earned income opportunities tied to your mission

4. Check Your Vulnerabilities

  • Are your 990s and governance docs current and compliant?

  • Are you meeting IRS rules for lobbying and political activity?

  • Have you secured two-factor authentication for key digital platforms?

  • Do you have reserves or contingency funds set aside?

  • Are any of your contracts or revenue streams tied to government funding?

Getting your internal systems and operations in shape is a smart, non-political way to prepare.

Resources to Bookmark

Here’s a short list of trusted sources we recommend monitoring:

I’d love to hear from you.  Schedule a meeting with me here.