Nonprofits Are Under Siege: Why It’s Time to Get Loud, Get Legal, and Get Moving

In recent months, I’ve had more than a few nonprofit clients reach out with a familiar concern:

“Are we going to be next?”

They’re not just worried about a bureaucratic delay. They’re asking whether their organizations — which exist to feed families, house neighbors, and provide critical care for the disadvantaged — are at risk of being shut down, raided, losing funding, or having their tax-exempt status revoked.

And increasingly, they’re asking this because they’ve already taken a hit. For a job-dropping list of revoked grants from the Department of Health and Human Services alone, check out: Federal grants terminated.

The message they’re hearing isn’t subtle. Whether through the Department of Government Efficiency (DOGE)’s aggressive posture or escalating scrutiny from the current administration and Congress, many nonprofits feel they are being treated not as partners in public service, but as political targets.

If you’re a public charity trying to stay focused on delivering services and keeping your doors open, this moment can feel destabilizing — even threatening.

So let me say this clearly:

You are still allowed to do your work.

You are still entitled to speak up.

And yes — you are allowed to advocate for your own survival.

Most Nonprofits Aren’t Political — But They Are Vulnerable

The majority of the nonprofits we serve aren’t national advocacy organizations. They’re local service providers — community-rooted, often under-resourced, and focused on programs that change lives.

They run domestic violence shelters. They provide free educational services to low income communities. They serve refugee families, run mental health hotlines, or tutor middle school students after school.

They’ve never had a lobbying team — and most have never wanted one. But now, after seeing grants revoked without warning, or hearing of peer organizations being investigated or defunded for entirely lawful (and often routine) work, they’re asking the question:

What if we speak out — and become the next target?

This is why advocacy matters. Not because your organization needs to become political, but because you may need to defend your right to exist.

Advocacy Is a Legal Right — and a Practical Safeguard

501(c)(3) public charities are explicitly allowed to engage in advocacy and lobbying, within defined legal boundaries. What’s often missing is guidance — and reassurance — that advocacy can be done lawfully, transparently, and effectively.

If your organization is concerned about crossing a line, you’re not alone. But the law provides a clear and accessible option: the 501(h) election.

Why it matters:

• It replaces vague, subjective rules with specific, dollar-based lobbying limits tied to your budget (which amounts to more than you may think).
• It gives boards, EDs, and staff confidence to speak up for their programs, funding, and clients.
• It’s simple to file (IRS Form 5768) and stays in place unless revoked.

Filing the 501(h) election doesn’t change your mission. It protects your right to carry it out — especially when policy decisions directly threaten your funding or your community.

In California? Be Aware of State-Level Rules

If your organization operates in California, you may also be subject to state lobbying requirements, depending on your activities.

You may need to register with the California Secretary of State if:

• You spend $5,000 or more in a calendar quarter on direct lobbying efforts with state legislators or administrative agencies.
• You pay individuals to communicate with policymakers about legislation or regulations.

Not every form of advocacy counts as “lobbying” under these rules, and many organizations don’t meet the thresholds. Still, it’s essential to know what’s reportable — and what isn’t. When in doubt, speak with legal counsel who understands the nonprofit sector.

Community-Based Advocacy Is Collective Protection

One of the most effective ways for nonprofits to push back — without burning out or taking unnecessary risks — is to do it together.

Now is the time to connect with peer organizations, statewide coalitions, and national associations that can amplify your message, coordinate shared responses, and provide a buffer of mutual support.

Here are some trusted, well-established organizations worth engaging with:

National Advocacy Organizations

• National Council of Nonprofits: The largest network of nonprofits in the U.S., offering federal policy updates, advocacy alerts, and toolkits.
• Independent Sector: A coalition of nonprofits, foundations, and corporate giving programs focused on federal policy, trust-building, and civic engagement.
• Alliance for Justice – Bolder Advocacy: Offers training, legal support, and advocacy resources to help nonprofits and foundations advocate safely and effectively.
• National Human Services Assembly: Connects human services providers to strengthen collective impact and policy engagement.

California-Based Resources

• CalNonprofits: The leading voice for California’s nonprofit sector. Offers policy briefings, advocacy tools, legal resources, and action alerts.
• Southern California Grantmakers and Northern California Grantmakers: Regional philanthropic networks with deep involvement in policy, capacity-building, and equitable funding practices.
• Catalyst of San Diego & Imperial Counties: Regional network of funders and philanthropists focused on San Diego and Imperial Counties.

What You Can Do Right Now

If you’re feeling uncertain about how to respond to this moment, here are a few clear, legally sound steps to take:

• Ensure your organization’s reporting (to the IRS, and to state charity regulators) is on time, complete, accurate and reviewed by your board (and potentially legal counsel);
• File the 501(h) election (IRS Form 5768) to establish safe, measurable lobbying limits.
• Review California lobbying rules (if applicable) to ensure you’re in compliance and protected.
• Educate your board and team on what types of advocacy are allowed — and encouraged — under current law.
• Connect with local, regional, or national coalitions to strengthen your voice and visibility.
• Reach out to legal counsel before responding to government inquiries, launching new campaigns, or navigating funding changes.

Final Reassurance

If you’ve lost a grant, you are not alone.
If your programs have paused or your staff have been laid off, I see you.
If you’re afraid that speaking out will put your organization at risk — you’re not imagining things.

But advocacy isn’t the risk. Invisibility is.

You have legal rights. You have a lawful pathway to protect your mission. And you have an entire vibrant sector of the United States economy standing beside you.

You don’t have to become an expert in policy. You just have to believe that your work — and the people you serve — are worth defending.