On February 6, the White House issued a memo, “Advancing United States Interests When Funding Nongovernmental Organizations,” directing the heads of executive departments and agencies to review all funding that the federal government provides to NGOs.
According to the memo: “It is the policy of my Administration to stop funding NGOs that undermine the national interest. I therefore direct the heads of executive departments and agencies to review all funding that agencies provide to NGOs. The heads of agencies shall align future funding decisions with the interests of the United States and with the goals and priorities of my Administration, as expressed in executive actions…”
What nonprofits does this order affect?
No single nonprofit or nor any nonprofit type – e.g. (c)3, (c)4, etc. – was specified in the order.
Although the term NGO is often used in reference to nonprofit organizations outside the US, the term can be broadly defined as simply “nonprofit entities.” To be clear, Internal Revenue Code (IRC) Section 501(c) defines 29 different types of nonprofit organizations that qualify for tax-exempt status. These categories cover a wide range of organizational purposes, from charities, philanthropic institutions, and religious groups to associations, business leagues, labor unions, and veterans service organizations.
In summary
The White House is directing agencies to review the nonprofits receiving funding from the federal government for alignment with their executive orders.
While not specific to this memo, an agency guidance document was issued for Memo 25-13 and may provide insight into the way agencies will be instructed relative to the February 6 memo.
GCN and many national organizations are seeking additional information and clarification about this memorandum, its scope, and implications for nonprofit organizations that receive federal funding.
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For more information on the executive orders made to date, see this spreadsheet.
For resources to navigate the uncertainty of the moment, including steps your organization might consider to stay on top of changes, visit our US Policy Changes Resource Hub.
