What Can Nonprofits Do With Spooked DEI Donors?
A flurry of executive orders followed by lawsuits has caused confusion among nonprofits and their donors. In times where the landscape is consistently shifting, and information is unclear, it is common for people to listen to their fear instead of for it.
Donors and boards often have kneejerk reactions to pull back and avoid risk. Some individuals are even asking to be removed from nonprofits’ listservs for fear of connection with an organization.
So, what can nonprofits do to break through the fear?
1. Remain up to Date on Information
We encourage nonprofits to follow the National Council of Nonprofits as they track the impacts of the recent executive orders on nonprofits. The National Council of Nonprofits updates its executive order chart regularly.
While it is important to understand what is happening, none of the most recent executive orders define what is “illegal discrimination or preferences” for nonprofits. This lack of a definition causes uncertainty but does not need to lead to alarm. (For more information on the lack of a legal definition, please see “Alarmed, Employers Ask: What Is ‘Illegal D.E.I.’?)
2. Meeting with Donors
When donors are concerned, the best thing development team members and program managers can do is lean into relationships. One of the most effective ways to communicate is to set up one-on-ones or a call to ease concerns. The meetings do not have to be explicitly about DEI. It is a good practice just to create space for people to share how they are feeling, how they are doing and to ask questions.
In meetings, it is important to be clear and concise about what your nonprofit is complying with and to ensure that your language is consistent and aligned with leadership’s. You cannot guarantee psychological safety to concerned donors, but you can provide off-the-record conversations. The majority of the time, people just need to be heard to ease their concerns.
3. Communication
External and whole organizational communication will need to go through more scrutiny and review. Nonprofits who are able to clearly and directly communicate if and how their messaging or mission is changing will be more successful. This is where the board and other key stakeholders can be additional messengers.
Now more than ever, we need nonprofits to provide essential services and advocacy for equity. Legal challenges are real and possible. Organizations may consider preparing a legal defense fund or building partnerships and coalitions with other organizations to create shared risk. It is by standing together that we can commit to justice.
Justice Informed is not a law firm and does not provide legal advice. When in doubt, please consult with a lawyer.
