Trump Administration Pauses (Possible) Nonprofit Executive Order

On Monday, Joseph Mead wrote about the rumors that Pres. Trump was going to target liberal tax-exempt organizations' exemptions, presumably through an executive order.

On Wednesday, there was an update to the rumored attack. the Administration said that no such executive orders were "being drafted or considered at this time." That statement apparently provided some, though not complete, comfort to leaders of tax-exempt organizations. It suggests no explicit short-term issues (though the statement does not deny that the Administration may make a move along these lines later).

Any attempt by the Administration to remove tax exemptions for ideological purposes will ultimately fail. But in the short-term, the threat itself could hurt tax-exempt organizations. Reportedly some donors are holding off on making donations out of fear of potential retaliation by the Trump administration. Others, though, are standing up for these organizations and continuing to make donations, claiming their First Amendment right to support the organizations they want to.

What will the future hold for tax-exempt organizations? Honestly, in the long term, they will be fine. And in the immediate term, their tax exemptions do not appear to be at risk. But what happens in the medium term is, for now, uncertain.

Samuel D. Brunson

Photo by Markus Winkler on Unsplash