The nonprofit sector confronts significant federal policy changes as university settlements reach record levels, with Harvard facing potential $500 million penalties and Columbia completing a $221 million agreement. Critical cybersecurity vulnerabilities in SharePoint systems threaten nonprofit infrastructure. Federal funding cuts include $2.7 billion in environmental justice grants, 40% reductions in nonprofit security funding, and complete elimination of $1.1 billion in Corporation for Public Broadcasting support. New DOJ guidance restricts diversity programs for federal grant recipients, while enhanced grant conditions target transgender rights and DEI initiatives. Federal hiring freezes and religious expression guidance reshape workforce policies. IRS developments challenge Johnson Amendment restrictions through proposed constitutional challenges. State governments implement emergency funding measures to support organizations navigating federal transitions, while new compliance requirements create administrative burdens across the sector.
