Protect the Sector — or Risk Losing It

Hello all!

It’s cold, icy, and cruel out there. We at Ultra have been really busy, working with nonprofit leaders, reading executive orders, and taking workshops and webinars — all in an attempt to figure out how best to support the sector during this time of government attack. We thought it would be helpful to share what we've learned — information, counsel, and advocacy resources — with you all. Of course, while you read, as the pop-psych saying goes, take what you like and leave the rest.

AND if there are issues you want to see us think through in future, please let us know — info@ultraadvising.com! Meanwhile, here goes:

As you can see below, the nonprofit sector is under multiform attack from Washington. You may be scrambling to figure out what the torrent of executive orders means and if your organization might be directly hurt by some or all of what they are demanding. Of course, no one can know from here which threats most imperil which organizations or even the sector as a whole — but for sure the threats are existential and nonpartisan. To wit, the places already laying off staff and cancelling programs include churches and orgs offering services to vets.

So, whoever you are and whatever your organization does, it is important to fold these attacks into your planning and preparedness. You can start by tracking the impact of executive orders on nonprofits HERE. Philanthropic trends and opportunities, as they relate to this crisis and otherwise, can be assessed HERE. There is also a cool new advice/Q&A column at Non Profit Quarterly called Ask Rhea. And the Nonprofit Law Blog has a nice weekly round up of issues and resources HERE.

Some of what legal and logistical experts are telling us on how best to protect organizations follows. We hope some of this is useful!

— Plan for multiple scenarios including the loss of government funding (first federal but, ultimately, everything).

— Be prepared for legal attacks on orgs you care about and on your own organization. They may or may not materialize but be prepared. The Lawyers Alliance for New York has a great guide for protecting your org HERE.

— Find a couple of angels who will be dedicated to helping you survive this era — financially and legally. Don't wait for the crisis to land on your organization, prepare for it and have allies and angels ready to help.

— Make sure taxes are filed, required policies are adopted, and potential liabilities are addressed. The sector is under a lot of scrutiny right now. Of course, organizations supporting immigrants or women's rights/pro-choice, or LGBTQ folks are going to be scrutinized. As are we all. Make sure your house is in order.

— Talk to your board and staff about your current and desired organizational risk level and risk tolerance. Decide together, and with intentionality, what you are willing to do, to risk, and to stand for in this climate.

— Do not assume that scrubbing a website or dropping a DEI policy will protect your organization, unless you continue to accede to developing governmental demands. 

— At the same time, understand what noncompliance with governmental policies might bring about for your staff, board, funders and those you work with. Legal action is being threatened for noncompliance. The DOJ  has sent letters to those who speak out.  There is no one correct way to handle this level of threat — but let’s do whatever we do with intention, foresight, and a sense of community care.  

— Assess where you are and think through how to improve your situation — here is a very solid self-assessment tool.

— Think through security and encryption at your organization and for yourself. There are free seminars HERE.

— Info on securing your organizational data is HERE.

— Everything is in flux including private funding, with many larger funders (individual or foundation) laying very low at the moment.  More info on this is HERE and HERE and HERE.

— Think about resource-sharing and mutual aid. Nonprofits can share. Why don’t we?

— Stay informed. Follow places like the National Council on Nonprofits, Nonprofit Quarterly, and the nonprofit association in your state. We will also post updates and news flashes.

Meanwhile, some basic info on where we are today (February 25) is below.

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CURRENT THREATS

1. Loyalty Oaths

As most of you know, the National Endowment for the Arts is currently requiring Assurance of Compliance, updated to include language prohibiting any activities "promoting 'diversity, equity, and inclusion' (DEI)...in accordance with Executive Order No. 14173....federal funds shall not be used to promote gender ideology, pursuant to Executive Order No. 14168, Defending Women From Gender Ideology Extremism and Restoring Biological Truth to the Federal Government." 

You can read some responses to this HERE and HERE.

2. NGOs Targeted

Meanwhile a White House memo released a couple of weeks ago requires loyalty to the current administration from the heads of Non Governmental Organizations, of which there are more than 1.5 million in the United States. The WH has ordered a massive review of funding for all NGOs in order to “stop funding to NGOs that undermine the national interest,” You can read a response to that HERE or HERE.

3. The Nonprofit Killer Bill

This bill, HR 9495, was originally proposed in November; it asserts that any nonprofit seen to be 'supporting terrorism' can face immediate legal consequences without due process.  The Treasury or White House can make an accusation without evidence, which an org then has 90 days to appeal/to prove their innocence. The bill was not passed in lame duck session but will likely circle back to easy passage this year. Read Responses to it HERE and HERE.

4. Funding Freezes

There was a proposed/now rescinded freeze on all government grants. It is important to note that the White House is not fully complying with the order to continue funding.

AND ON THE UPSIDE

1. The National Council on Nonprofits is suing the White House, the first such action in its history. You can read about that HERE.

2. Deep respect to The Legal Defense Fund and Lambda Legal for their lawsuit on behalf of the National Urban League, the National Fair Housing Alliance, and the AIDS Foundation of Chicago. Check it out HERE.

3. The NAACP has created a list of which orgs ditched their DEI policies/programs and which ones did not, as well as The Black Consumer Advisory.

4. We can call our Congresspeople and let them know we care about nonprofits. This app makes it unbelievably easy to do every single day.

5. We can work with our state governments to encourage greater state funding of nonprofits that cannot be revoked by the federal government.

6. There is new emergency fund to help ‘high imparct’ orgs recoup some of what they are losing in federal funding, and “get back to work to prevent unnecessary harm and disruption to millions of people.” Check it out HERE.

7. Solidarity. We can support the most vulnerable nonprofits and those speaking out. We will be supported in return. It’s our job to provide a lot more ‘on the upside’ news…

Thanks for reading, friends — and hang in there. We are with you all the way!