In the third installment of our "Defend Nonprofits, Defend Democracy" series, Fund the People’s President and CEO Rusty Stahl discusses recent attacks on the nonprofit sector by the Trump Administration. He lifts up one recent example: an order to change to the Public Service Loan Forgiveness Program. The administration's executive order would disqualify service at nonprofits or government agencies working on issues like immigrant rights, equity and inclusion, and LGBTQ rights from counting toward loan forgiveness, effectively targeting both workers in public service careers, and the communities they serve.

Stahl examines how these attacks are part of an integrated approach by the administration that simultaneously targets marginalized communities, government agencies, nonprofit organizations, and the First Amendment of the Constitution —undermining legal and civic infrastructure that has long enjoyed bipartisan support. He notes that this approach is more authoritarian than previous administrations as it not only scapegoats vulnerable populations but also attacks the platforms through which people organize and solve problems.

The podcast highlights the growing tension between nonprofits and philanthropic funders, with many foundations hesitant to speak out for fear of retaliation. Stahl acknowledges that some foundations like Robert Wood Johnson, Barr Foundation, and Public Welfare Foundation have issued strong statements, made emergency funds available, ir increased payout, but encourages more individual and collective action. 

He concludes by urging listeners to share stories of harm experienced by nonprofits through various data collection initiatives to help advocates and policymakers understand the real-world impact of these attacks.

Resources

National Council of Nonprofits

https://www.councilofnonprofits.org/form/effects-executive-actions-nonprofits 

Building Movement Project

bit.ly/bmp-np-survey

Chronicle of Philanthropy

https://www.philanthropy.com/article/is-trumps-second-term-affecting-your-nonprofit

Massachusetts Nonprofit Network and the Boston Foundation

https://survey.alchemer.com/s3/8186064/TBF 

North Carolina Center for Nonprofits 

https://docs.google.com/forms/d/1CyIwW5M9stso2uhLqxXYOIsZFCyc4_9qkIzHqt3pP5Y/viewform?edit_requested=true

Minnesota Council of Nonprofits 

https://forms.office.com/Pages/ResponsePage.aspx?id=sAFEEhMFb06lYlyGZA4tWfceH_gnu0pDhG07nKeU4opUQ0NaR1NXUDFRNDRXTU9NWEhDMk5DOFNSUS4u

One Voice Central Texas 

https://docs.google.com/forms/d/e/1FAIpQLSfvPDaZDzOQE_g3K7hYZvoMaO6-RYwD_HJNng0j12hG4ViKwQ/viewform 

Delaware Alliance for Nonprofit Advancement 

“Delaware Nonprofits and the Impact of “Executive Orders and Federal Policy Changes” (Report)

https://delawarenonprofit.b-cdn.net/wp-content/uploads/2025/02/DANA-Survey-on-EO-Impacts-on-DE-Nonprofits-FINAL.pdf

“Survey Reveals Delaware Nonprofits at Risk Due to Federal Funding Issues” (Press Release on Report)

https://delawarenonprofit.org/blog/federal-funding-freeze-impacts-on-nonprofits/