Nonprofit professionals are often described as resilient. I have spent over a decade as a nonprofit leader, consultant, and board member. Name a nonprofit job hat and I’ve worn it. The past couple of weeks have tested the sector in unprecedented ways. The last time this happened, COVID-19 paused programs, funding, and changed the way nonprofits worked. However, the storm that began to form when the White House issued a memo on the federal freeze on January 27, 2025, was completely preventable. And although it was rescinded less than 48 hours later, it was enough to do damage.

But why are we being labeled as resilient? Our sector is a driving force behind our nation’s social and economic success. In fact, according to the 2018 Independent Sector report, nonprofits generate over $1 trillion in economic activity each year and support more than 12 million jobs—roughly 10% of the U.S. workforce. Moreover, the National Center for Charitable Statistics notes that there are over 1.5 million nonprofit organizations across the country. Regardless of your political views, these numbers underscore that nonprofits are indispensable to our collective progress.

So, what happened?

In case you haven’t been following, the new administration has been busy signing executive actions that are having significant and wide-ranging impacts on the nonprofit sector. Since taking office, the Trump Administration has signed over 70 executive orders covering a broad spectrum of issues, from diversity and inclusion to immigration to environmental policy. In late January, the Office of Management and Budget (OMB) issued a memo directing all federal agencies to immediately halt the disbursement of open grant funds. This sudden funding freeze sent shockwaves through the nonprofit sector, as organizations that receive critical government contracts and grants faced the prospect of having to scale back or even shut down essential programs.

The National Council of Nonprofits quickly filed a lawsuit challenging the OMB’s actions, arguing that the funding freeze was arbitrary, lacked legal authority, and violated the First Amendment rights of nonprofits. After a temporary restraining order was granted, the OMB claimed to have rescinded the memo, but the status of the funding remains uncertain for many organizations who were told to be more careful about how they spend their money. As of April 1, 2025, the preliminary injunction remains in effect, preventing the administration from implementing the funding freeze.

The impacts are being felt especially hard by rural and smaller nonprofits, which have fewer alternative funding sources and less capacity to navigate these disruptions. Ultimately, the damage extends beyond the nonprofit sector, harming vulnerable populations and the broader economy.

A series of executive orders since then have continued to shake our sector. One order now limits Public Service Loan Forgiveness eligibility for nonprofit workers engaged in work deemed “improper,” such as immigration and advocacy efforts. Another targets nonprofits that conduct voter engagement, imposing new restrictions around proof of citizenship and ballot deadlines— which affects civic participation efforts for many underrepresented groups.

Perhaps most jarring is the administration’s move to dismantle DEI efforts altogether. A sweeping executive order prohibits the use of federal funds to support what it labels “divisive concepts,” extending into nonprofit organizations. Groups like Chicago Women in Trades (CWIT), which promotes gender equity in the skilled trades, are now suing the federal government for infringing on their rights and undermining their missions.

How can you help?

Are we resilient because of our work ethic, commitment, and passion for our cause? Or is it because we continuously fight through hurdles to get our vulnerable what they need? Now, more than ever, we need to give unrestricted funds. My dear colleague and friend Angelica Suarez says that we need to bring back generosity to philanthropy—charity has turned into a transaction, we need to give to be generous.

Supporting MIM both as a board member and recurring donor is one of the ways I am fighting back against the need for organizations to be resilient. You can follow me or learn more about my work at www.palantenonprofits.com and follow @palantenonprofits or @andreadrnonprofit on Instagram.