On May 29, the Office of Budget and Management (OMB) proposed revisions to the Uniform Guidance that could reshape the compliance landscape for federally funded nonprofits. For detailed information on the proposed rule, click here.
If these federal proposals have your nonprofit spiraling, remember 501(c)(3) organizations can advocate. Whether you’re working on immigrant rights, reproductive justice, LGBTQ+ issues, voting access, or any number of public policy concerns, nonprofits have plenty of tools at their disposal, including administrative advocacy, which generally does not fall under the Internal Revenue Code’s (IRC) definition of lobbying.
In a moment when public discourse is increasingly polarized, and government policies are shifting quickly, nonprofits remain uniquely positioned to educate, convene, and intervene on behalf of their communities.
Proposed Changes
The Assault on Diversity, Equity, & Inclusion (DEI)
The proposed rule restricts federal funds from supporting DEI-related activities that agencies determine conflict with federal anti-discrimination laws. This includes a prohibition on adopting “DEI initiatives or practices that include providing benefits or opportunities based on race or sex; imposing race-conscious quotas or objectives … or conducting training sessions that endorse and encourage racial stereotyping and scapegoating, promote unlawful discrimination, or contribute to a hostile environment.”