The philanthropic and nonprofit sector is in the midst of a major test. The administration’s Executive Order “Ending Illegal Discrimination and Restoring Merit-Based Opportunity” has left social sector organizations grappling with critical questions about the future of funding streams and fearful of legal action from regulators and employees critical of affirmative action.
At Trepwise, we work closely with nonprofits and foundations across the country as their trusted partner in planning. Much of the coverage of this ban captures the contours of the legal debate around free speech and landscape dynamics, but misses some of the nuances of how DEI actually shows up in organizations.
On the ground, we’ve seen DEI work—and often DEIB or DEIA work (with the B standing for belonging or A standing for accessibility)—be a key tool in accelerating organizational effectiveness. In program design, we have helped organizations use this framing to reduce barriers to program participation for individuals and groups with the most need. Internally, we have seen DEI audits help leaders identify opportunities to expand networks for hiring and standardize and document their policies around performance and professional advancement.
Regardless of terminology, these efforts are fundamentally about understanding what team members and participants need to succeed and building environments that are tailored to provide access and support. We expect nonprofits will still pursue these goals independent of shifting legal and policy frameworks.
Ultimately, it is in the realm of language where much of the legal battle is currently being fought. For foundations and nonprofits, there is a need to determine desired level of risk. Decisions around language related to DEI and equity must be thoughtfully considered. Is moving away from these terms a strategic response to mitigate risk, or does it represent a form of self-censorship and capitulation? Either way, while the debate unfolds, the underlying need for addressing disparities and fostering equitable opportunities will persist.
The core principles of DEI work—creating fair policies, engaging diverse communities and fostering inclusive workplaces—are now recognized as best practices that elevate organizations and the communities they serve. No executive order can change that. Ultimately, the strategies pursued by nonprofits will be deeply shaped by the response from philanthropy—both foundations and major donors. Funders often move slowly, and many of them are in the midst of assessing their own strategies and legal risks. But we hope that funders committed to systemic change will continue to support interventions that address inequities—even as political and legal pressures mount. The road ahead may be uncertain, but this is exactly the type of moment for which philanthropy exists: to continue the work of building a more perfect union in the face of challenging headwinds.
