Publications

Policies, public communications, and governmental actions taken by this administration in 2025 have brought on unprecedented challenges and confusion to the nonprofit sector, from constant threats against foundational pillars within the philanthropic space to Executive Orders looking to criminalize DEI and progressive movements. It has been a difficult and concerning time for many grantmakers, which has led to a range of reactions from the more protective stance of censoring or shifting granting priorities, while others have gotten louder, creating programs that focus on combating the hostility pointed toward diverse, inclusive organizations looking to support marginalized people. 

There is no one right answer for navigating and responding to these challenges, but it is important to keep key principles of charitability and mission-alignment in mind. 

The concept of holding to a nonprofit’s ‘why’ is far from new. Years before the most recent attacks on the philanthropic sector, organizations were being encouraged to let their purpose guide operations and practices – from the implementation of trust-based grant-making to building larger coalitions of change. The ‘why’ is expressed in many ways – an organization’s vision, mission, values, and the communities it serves. All of these are key foundational concepts guiding operations and practices. But the foundational ‘why’ – the one driving the organization’s formation and the tenet by which activities are evaluated by the IRS – is an organization’s charitable purpose.

The Internal Revenue Service (IRS) states that the “term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erection or maintenance of public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.” Charitability is the avenue by which many organizations receive their tax-exempt status and acts as the ‘why’, covering the broad issue(s) that a nonprofit organization aims to address.

As organizations continue to receive threats to their charitable status, there is the looming question of how one can continue mission-aligned programs and activities while navigating an administration hostile to restorative efforts within the nonprofit industry. It is important to have a solid grasp on the specific charitable purpose of the organization while ensuring that the execution of the organization’s mission clearly aligns with the purpose for which it was formed. By ensuring the organization’s actions remain aligned with its charitable purpose, the organization has a stronger grounding for the pursuit of its brave, impactful work.

This article was written by Camille Morris, Consultant at The Build Up Companies.