The prolonged federal government shutdown and the Trump administration’s NSPM-7 directive targeting nonprofits now dominate the operating environment for charitable organizations. Frozen reimbursements, halted grant reviews, furloughed federal partners, and rising service demand are creating immediate liquidity crises for nonprofits across sectors. At the same time, criminal investigations and domestic-terrorism framing under NSPM-7 are reshaping the legal and reputational risk landscape for advocacy organizations. This update equips nonprofit leaders with the intelligence needed to operate, comply, and defend organizational mission in this rapidly shifting environment.