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.

In several rooms, I’ve heard the same question: “How am I supposed to certify that my organization doesn’t promote DEI if no one can explain what that actually means?” And yet, that certification is now required if you want to receive or continue federal funding.

Unfortunately, the answers aren’t much clearer than the question. The best advice being given right now? Reach out to the funding agency directly, follow their guidance, and use broad language in your applications that avoids anything that could be interpreted as promoting DEI—even though that’s still undefined.

While much remains unclear right now, one thing is certain: Nonprofit Network will continue to show up for our members and the sector. We’re here to offer conversation, resources, and up-to-date information to help organizations navigate these shifting landscapes with confidence.

To help you navigate these complexities, be sure to register for our no-cost virtual discussions, Executive Reality Sessions (July 9th) hosted by Nonprofit Network. This facilitated series offers a confidential, judgment-free space where Executive Directors can step out of isolation and into real conversations with peers who understand the weight of the role. Whether you’re managing mission drift, leading through decision making fatigue, or racial equity stress, these sessions offer both clarity and community.

To register for these free sessions, visit our website here- Executive Reality Sessions- A candid space for nonprofit leaders navigating complexity. And also consider joining us for Executive Orders and the Things We Can Be Doing Right Now on July 22nd with Renell Weathers.

If you'd like to connect with me about developing strategies for your organization you can email me at [email protected]

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