Non-Profit Organizations Brace for Possible Tax Exemption Revocation
U.S. non-profit organizations focusing on climate change are gearing up to defend against a potential move by the Trump administration to revoke their tax exemptions. Rumors have been circulating within these groups about expected executive actions from President Donald Trump, including changes to IRS rules that could disqualify climate change as a charitable topic and block the use of U.S. grants for international work. The concern grew after Trump made comments targeting Harvard University’s charitable status, which could set a precedent for other 501(c)3 organizations.
The American Civil Liberties Union and Public Citizen recently held a Zoom call to discuss preparations for potential executive actions, drawing an overwhelming response from non-profit leaders. Despite the fear and uncertainty surrounding the situation, political law firm Sandler Reiff advised their clients not to panic, emphasizing that the President cannot unilaterally revoke tax-exempt status. However, the looming threat has prompted foundations and philanthropies to brace themselves for a possible crackdown on their climate-related initiatives. The MacArthur Foundation, for instance, has pledged to increase their charitable gifts in the face of any limitations imposed by the administration.
As the tension mounts between non-profits and the Trump administration, many are left wondering about the legality and implications of such actions. Lawrence Lessig, a Harvard Law School professor, expressed doubts about the President’s authority to change the tax status of organizations without proper investigation. Despite the uncertainty and potential challenges ahead, foundations like the MacArthur Foundation remain resilient in their commitment to supporting climate-related causes. The future of these non-profit organizations hangs in the balance as they prepare to defend their mission against possible threats from the government.
