Nonprofits within 2026 Political Climate

EBI Labs Contributor Series June 5, 2026

Research & Findings

Nonprofits within Today's Political Climate

When disaster strikes, communities struggle, or families face hardship, nonprofit organizations are often the first to respond and the last to leave.

Briana Arnold Executive Project Manager & Contributor, EBI Labs

Introduction

For decades, nonprofits have served as a vital safety net, filling gaps where resources, funding, and support systems fall short. Today, however, nonprofits face a growing challenge: while the need for their services continues to increase, funding opportunities are shrinking. At the same time, nonprofits must navigate an evolving compliance landscape, particularly around diversity, equity, and inclusion (DEI) initiatives, as government agencies and funders place greater emphasis on demonstrating equal access, non-discriminatory practices, and measurable community outcomes, so they say!

As a result, organizations are being asked to solve bigger problems, reach more people, and deliver measurable impact with fewer resources, a challenge that is testing the resilience and sustainability of the nonprofit sector. Although it seems like the impossible, conducting this weeks research will allow Nonprofit leaders with 1-20 years of experience navigate through the weeds and ensure their mission is delivered.

Key Findings

DEI Compliance & the Executive Order

There was an executive order, from Trump, placed on 3/26/2026 that increases scrutiny of DEI-related practices among federal contractors and grant recipients, emphasizing equal treatment, non-discrimination, documentation, and accountability. Organizations seeking government funding should ensure their programs, hiring practices, and resource allocation processes are compliant with evolving federal requirements while continuing to demonstrate measurable community impact.

Through Research, it was discovered that enforcing DEI compliance does not have to result in your mission changing — the language around the mission just needs to be strategically altered. When filing for grants or reporting results, having the focus remain on breaking barriers and overall opportunity.

NIST AI Risk Management Framework

The NIST AI Risk Management Framework (AI RMF) is the U.S. government's leading guidance on how organizations can use AI responsibly, ethically, and safely. It is designed for organizations of all sizes and industries, including nonprofits. The framework focuses on helping organizations maximize AI's benefits while reducing risks such as bias, privacy concerns, misinformation, and loss of public trust.

Assumptions

Initially, I assumed that the evolving DEI compliance requirements could have a negative impact on organizations that focus on serving specific populations or ethnic communities. Through my research, I found that while increased scrutiny does present new challenges, it does not necessarily prevent nonprofits from fulfilling their missions. Instead, organizations must be more intentional about how they structure programs, document outcomes, and demonstrate that their efforts are focused on expanding access, removing barriers, and serving community needs in a manner that remains compliant with federal requirements.

This Week's Work

Researched the DEI compliance & how it affects funding - reading deeper into what the government is actually looking for. I also researched way to ensure non profits are backed by communities via community involvement to increase and sustain overall support. Lastly I completed research and compiled findings on how to safely use AI within non profits reviewing the Risk Matrix provided by the Government.

Point of Disagreement

In my view, the purpose of many nonprofit organizations is to address the unique challenges faced by individuals and communities that have historically experienced barriers to opportunity, resources, or support. Whether these groups are described as underserved, marginalized, or minority populations, focusing on their needs does not diminish the principles of equality and inclusion, it seeks to advance them by helping ensure that everyone has a fair chance to succeed.

However, the evolving compliance landscape presents a new challenge for nonprofits. The 2026 Executive Order has increased scrutiny of DEI-related practices among federal contractors and grant recipients, placing greater emphasis on equal treatment, non-discrimination, documentation, and accountability. As organizations navigate these changes, many are being challenged to balance their mission of serving vulnerable populations with the need to demonstrate that programs, hiring practices, and resource allocation decisions remain compliant with federal requirements. Ultimately, the conversation may be shifting from how organizations define DEI to how they effectively remove barriers, expand access, and create measurable outcomes for the communities they serve.

References

Addressing DEI Discrimination by Federal Contractors

communityit.com — Mission-Aligned AI Adoption Model for Nonprofits

nvlpubs.nist.gov — NIST AI 100-1

EBI Labs Up next: AI Risk Matrix deep dive & fund stabilization research