Last week, President Donald Trump issued an executive memorandum directing federal agencies to develop a national strategy to "investigate and disrupt networks, entities and organizations that foment political violence."
The order specifically targets foundations funders, and nonprofit organizations, raising the prospect of Internal Revenue Service (IRS) reviews of tax-exempt status and possible criminal investigations. It directs the FBI’s National Joint Terrorism Task Force and its local offices to examine "institutional and individual funders, and officers and employees of organizations" accused of aiding or abetting political violence or terrorism.
The IRS is instructed to ensure no tax-exempt entity is directly or indirectly financing such activity and to refer suspected organizations and employees to the Department of Justice (DOJ).
The memo coincides with reports that DOJ is preparing an investigation into the Open Society Foundations.
Yes, but legal experts warn the memo grants broad authority that could be wielded against groups critical of the administration, noting "domestic terrorism" has no statutory definition.
What they're saying: The National Council of Nonprofits condemned the memorandum as an attack on nonprofits’ First Amendment rights, while other groups have voiced concerns about nonprofit independence and donor privacy.
So far, only foundations — not associations — have been explicitly mentioned. The American Society of Association Executives (ASAE) is monitoring developments closely and will keep the association community informed.
This article was provided to OSAP by ASAE's Power of Associations and Inroads.