03 June 2025
Trump’s Threat to Nonprofits
The administration of President Trump is threatening nonprofits with the loss of tax-exempt status in an attempt to force them to conform their activities to policies favored by that administration. The threats are based on shaky legal grounds, and nonprofits have both constitutional and statutory bases for countering them. Nevertheless, these threats are significant, especially when combined with the administration’s efforts to cut government funding for many programs operated by nonprofits. And at the same time, the U.S. Congress is considering reducing the benefits of tax-exempt status in many ways, primarily to help pay for tax cuts benefitting wealthy individuals and corporations.
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