This analysis examines the impact of President Trump's January 2025 executive orders on nonprofit diversity, equity, and inclusion (DEI) programs. The orders target federal funding recipients, requiring certification of compliance with anti-discrimination laws and threatening enforcement actions against organizations with "discriminatory DEI practices." Nonprofits face significant compliance challenges, potential loss of federal funding, and legal risks. The analysis provides nonprofit executives with frameworks for conducting organizational self-audits, understanding federal and state legal requirements, and developing strategies to maintain diversity goals while ensuring compliance. Key recommendations include reviewing all DEI-related policies, diversifying funding sources, consulting legal counsel, and implementing race-neutral approaches to achieve inclusive outcomes.
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