DEI, Federal Funding, and the Confusion in Between

As the Membership and Outreach Coordinator at Nonprofit Network, I’m fortunate to attend networking events, resource fairs, association meetings, and legislative panels—and share space with so many incredible community leaders. These opportunities allow me to better understand not simply the organizations we serve, but the real-world challenges nonprofits are facing every day.

Right now, while things feel ever shifting at the federal level and uncertain across the state, nonprofits are doing what they’ve always done: showing up and serving. They’re raising their voices, adjusting priorities, and finding creative ways—like they did during COVID—to keep moving forward and continue advancing their missions.

Recently, I had the chance to attend a Legislative Breakfast Panel hosted by the Michigan Nonprofit Association. In this space, nonprofit leaders and state and federal representatives came together to talk about new federal changes that could have serious impacts on the sector. One hot topic: the growing confusion around DEI (Diversity, Equity, and Inclusion) in federal grant applications.

Here’s the tricky part: as of now, there’s no clear definition from the federal government on what counts as a “DEI activity.” Recent executive orders have removed DEI from federal funding criteria altogether—and in some cases, even prohibit it—without offering any real clarity.