Federal Investigations and Inquiries into Nonprofits

Our friends at the National Council of Nonprofits are reporting that a coalition of 19 Republican state Attorneys Generals are working with the US Dept. of Justice to target nonprofits working on environmental and other issues. This is a coordinated legal and political push by Republican officials targeting climate-focused and “left-leaning” nonprofit organizations. Organizations like the Sierra Club and New Venture Fund argue this is “lawfare”— using the legal system to harass and silence advocacy groups they disagree with. Find the full report here – https://tinyurl.com/3pnd8tpa

At the same time, the General Services Administration (GSA) has proposed requiring applicants who use the System for Award Management (SAM.gov) to agree to three new certifications annually. An active SAM.gov account is required for any organization receiving federal funds. These certifications would affirm that grantees:

• Will not “fund, subsidize or facilitate violence, terrorism… or threaten public safety or national security.”
• Do not operate programs promoting “illegal DEI” or “discriminate on the basis of race or color” in violation of federal anti-discrimination laws; 
• Will not knowingly transport, conceal, harbor, shield or hire “an illegal alien.” 

This new directive comes directly after many of our organizations received emails from various federal agencies demanding that we sign a “waiver” in order to receive contracted funds. This “waiver” reads in part that we: “agree not to use these grant funds to promote “gender ideology” as defined in Executive Order (“E.O.”) 14168 or to fund or promote elective abortions as required by E.O. 14182. You also agree to comply with all applicable Federal anti-discrimination laws and agree not to discriminate against an organization based on the organization’s religious character, affiliation, or exercise in selecting subrecipients.”

We all already comply with all federal laws so what is the point of these coordinated legal attacks?

Nonprofits contribute over $1.5 trillion to the U.S. economy annually, accounting for approximately 5.4% of the total Gross Domestic Product (GDP) and employing around 10% of the U.S. private workforce. Here’s a few fast facts about the impact of nonprofits:

• Nonprofit hospitals and health systems serve approximately 1 out of every 3 Americans each year.
• In 2025, nonprofit food banks served an estimated 49 to 53 million people in the U.S. (roughly 1 in 6 Americans).
• Nonprofit museums, zoos, and performing arts centers see over 850 million visits annually.
• 77% of organizations reported an increase in demand in early 2026, but only 31% said they have the funding to expand their services to meet that new need.

What affects our nonprofits, affects us all. These legal attacks serve no purpose other than to make life harder for our most vulnerable communities.