Navigating the Future of DEI in Nonprofits: How the True North Leadership Model Can Help

By: Jamal Jimerson, Chief Innovation Officer & MISSION Coach

Navigating Nonprofit Leadership in a Shifting Landscape

As the Trump administration continues its aggressive rollback of Diversity, Equity, and Inclusion (DEI) initiatives, nonprofit organizations are facing increased challenges that threaten their ability to advance equity-based work. From changes in federal grant requirements to heightened scrutiny of DEI efforts, nonprofits must now navigate a complex and uncertain landscape while staying true to their missions.

At North Star Impact Coaching (NSIC), we understand the weight of these challenges. Our True North Leadership Model (TNLM), grounded in Principles, Values, and Character (PVC), is designed to help nonprofit leaders adapt to these shifting dynamics while maintaining their commitment to equitable and inclusive practices.

In this post, we’ll explore the key executive orders impacting nonprofits, the potential implications, and actionable strategies to navigate these challenges using TNLM as your guide.

Key Executive Orders Impacting Nonprofits

Three executive orders from the Trump administration have created significant uncertainty for nonprofits engaged in DEI work:

1. Executive Order 14173: “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”

This order fundamentally changes the landscape for DEI initiatives in federally funded organizations, including nonprofits. Key provisions include:

• Rescinding affirmative action and nondiscrimination requirements under Executive Order 11246.

• Mandating that federal grantees certify they do not operate any “illegal” DEI programs.

• Instructing federal agencies to target DEI programs perceived as violating federal antidiscrimination laws.

• Expanding enforcement mechanisms, including potential criminal investigations into nonprofit DEI practices.

  
  

2. Executive Order 14151: “Ending Radical and Wasteful Government DEI Programs and Preferencing”

This order eliminates DEI-related offices, programs, and personnel across federal agencies. It also signals a federal stance that DEI programs are inherently discriminatory, increasing the likelihood of scrutiny for nonprofits engaging in similar efforts.

3. Executive Order 14168: “Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government”

This order defines sex as strictly binary, impacting federal policies on gender identity and LGBTQ+ protections. Nonprofits engaged in gender equity, LGBTQ+ advocacy, and human rights work may face new restrictions and challenges in securing federal funding.

How These Orders Impact Nonprofits

While these executive orders primarily target federal agencies and contractors, their ripple effects are being felt across the nonprofit sector. Key concerns include:

• Grant and Contract Compliance: Federal grant applications may now require certifications that grantees do not operate “illegal” DEI programs, creating uncertainty around which initiatives are at risk.

• Legal and Financial Risks: Nonprofits with DEI-focused hiring, training, or programmatic initiatives could face lawsuits or loss of funding if deemed noncompliant.

• Philanthropic and Corporate Funding Shifts: Foundations and corporate donors may alter their giving priorities or scrutinize grantees’ DEI efforts to avoid legal or reputational risks.

• Internal Organizational Challenges: Employees, board members, and stakeholders may express concerns about maintaining equity commitments amidst these new restrictions.

Proactive Steps for Nonprofits

To navigate these challenges, nonprofits must take strategic action while reaffirming their commitment to equitable, mission-driven work. Here’s how our True North Leadership Model (TNLM) can guide your approach:

1. Conduct a Legal and Risk Audit

• Review current DEI programs and policies for compliance with federal and state laws.

• Consult legal counsel to evaluate potential risks associated with federal funding requirements.

• Assess public-facing DEI statements to ensure alignment with your organization’s risk tolerance.

Our focus on Principles ensures that your policies and practices are ethically sound and aligned with your organizational values, helping you navigate compliance with integrity.

2. Strengthen Mission-Driven DEI Approaches

• Emphasize that DEI efforts align with broader organizational values rather than political frameworks.

• Reframe DEI language where necessary to focus on inclusive leadership, equitable access, and nondiscriminatory policies.

• Highlight data-driven evidence of DEI benefits in advancing your mission and impact.

Our emphasis on Values helps nonprofits articulate their equity work in a way that resonates with stakeholders while staying true to their mission.

3. Diversify Funding Sources

• Reduce reliance on federal funding by expanding partnerships with private donors, philanthropic foundations, and community-driven fundraising.

• Engage donors and supporters in discussions about the importance of equity-based work.

Our focus on Character equips leaders with the skills to build authentic relationships with funders and inspire trust in their mission.

4. Train Leadership and Staff on Compliance & Advocacy

• Provide guidance on navigating conversations about DEI amidst political changes.

• Train board members and leadership teams to articulate the business and social case for DEI.

• Prepare staff for potential audits, investigations, or funding challenges related to DEI programs.

Our framework is designed to empower leaders to lead with clarity and confidence, fostering a culture of accountability and resilience.

5. Advocate for Policy Change and Legal Challenges

• Join coalitions advocating for DEI protections at the state and local levels.

• Support legal challenges to executive orders that undermine equity-based initiatives.

• Engage in nonpartisan efforts to educate policymakers on the value of nonprofit DEI work.

Our holistic approach ensures that advocacy efforts are aligned with your organization’s ethical compass, driving meaningful change..

Looking Ahead: Leading with Purpose in Uncertain Times

The current political landscape presents a challenging environment for nonprofits committed to DEI. However, history has shown that equitable and inclusive leadership models remain essential for driving meaningful change. By proactively adapting strategies, strengthening legal and financial resilience, and reaffirming a commitment to mission-aligned DEI, nonprofits can continue to advance equity even in uncertain times.

At North Star Impact Coaching (NSIC), our True North Leadership Model (TNLM) is designed to help nonprofit leaders navigate these complexities with integrity, clarity, and purpose. TNLM provides the tools and strategies needed to align your leadership with your mission while adapting to a rapidly changing landscape.

Join the Conversation

NSIC is here to help. If your organization needs guidance on aligning values-based leadership with emerging legal and policy shifts, contact us today to learn more about how the True North Leadership Model can empower your nonprofit to thrive.

Stay informed. Stay resilient. Stay mission-driven.