​​​What Panic Looks Like​​
Nonprofit leaders braced themselves for a threat made more terrifying because it was unknown. ​C​ould the order ​deem​ ​any​ mission ​as ​“uncharitable” and ​then ​strip nonprofits of 501​(​c​)(​3​)​ tax-exempt status? ​Could any charity be ​accuse​d​ of “supporting terrorist activity”? Would ​the order​ name specific organizations, or would it create a blanket rule that could include work even tangentially connected to issues of climate change? ​C​ould ​a nonprofit’s ​bank accounts and assets be at risk? Would foreign funding be targeted? Would ​the safety of ​individual staff be compromised?

With the sector consumed with fear, valuable staff time and energy was spent trying to triage for this uncertain threat ​while ​pulling organizational resources away from their critical day-to-day work. ​During this chaos, n​onprofit organizations, many of which provide essential services to their local communities, lost their ability to fulfill their missions. Instead, they scrambled to join emergency ​meetings​ ​to devise​ a defensive strategy while​ ​​c​ommunications teams scrubbed websites and ​o​perations teams tried to figure out how they would pay their staff if bank accounts were frozen.

Law firms and nonprofit professionals have attempted to offer reality checks and ​provide ​some calm to the US nonprofit sector​.​ ​T​he president of the United States has no legal ability to revoke an organization’s nonprofit status. The IRS has extensive multistep procedures for revoking tax-exempt status​ ​and ​utilizes ​an appeals process for its reinstatement. Private financial institutions cannot be ordered by the ​p​resident to freeze domestic organizations’ bank accounts. And, as with all the previous ​e​xecutive ​o​rders coming out of this administration, a lengthy legal battle would likely follow​. ​​D​irect repercussions for the sector could take months to sort out. Even ​after​ Politico reported that the administration denied any plans to rescind the 501​(​c​)(​3​)​ status of climate nonprofits, a sense of disorientation persist​s​​ and ​feels like a temporary reprieve rather than a victory.

‍Panic Further Weakens Civil Society​​​​
This chaos is by design. Destabilizing civil society with threats, panic, and confusion, ​and then burdening them with onerous bureaucratic requirements​, ​is a tool in the authoritarian playbook worldwide. Threats against nonprofits can take the form of ​designating them as a ​“foreign agent,” “extremist,” and “undesirable” ​similar to​ Russia​’s ​and Georgia’s “foreign agent” legislation. ​B​urdensome reregistration requirements​ can also be required​, the way they had in Uganda. We have seen such attacks in US history as well: the IRS came after the NAACP’s tax status in 1957, ​which ​forc​ed​ its ​l​egal ​d​efense ​f​und to split into an independent organization. It did so again in 2004, after the NAACP’s chair criticized President George W. Bush​.​​ I​t took two years (and, surely, enormous resources) for the IRS’s investigation into ​the NAACP’s​ tax-exempt status to be dropped. ​​

‍For years, ​​o​rganizations like STROIKA have been sounding the alarm about the potential threats facing the US nonprofit and philanthropic sector. US civil society has had ample time to ​consider ​scenario​s and​ plan for such a move as it is a classic one from the authoritarian playbook. But for most within this sector, a sense of US exceptionalism led them to believe that “it can’t happen here” ​and ​that the institutions would protect them​.​ ​Most nonprofits thought that if they just​ follow​ed​ the letter of the law and maintain​ed​ meticulous transparency about their activities​,​ ​they ​would ​be​ safe. As a result, many ​are now​ underprepared for these seemingly new types of threats.

The attacks have just begun, but the damage is already being felt. Organizations large and small are each coming up with their own individual response plans without sufficient​ly​ coordinat​ing​ with each other. Valuable resources are being diverted from mission-critical work. Retention will become more challenging as nonprofit employees, concerned about their livelihoods, are more likely to leave the sector in the face of so much financial and political uncertainty. These impacts will weaken the civil society sector as a whole​,​ which at the moment is one of the few remaining viable checks on government overreach.

‍Five Steps for Building Resilience
As the proverb goes, “The best time to start was yesterday; the second best is today.” The same can be true of having a preparedness plan. Many practical steps can and should ​be​​ taken​​ ​right now so that the next rumor does not further sideline the nonprofit and philanthropic sector. Below are ​five​​ steps ​that can be used by​ ​​both ​​nonprofit organizations​​ and​ all Americans who care about a resilient civil society. Investing in these preparedness steps will not only help to safeguard existing mission-driven work but also strengthen our ability to take courageous action, even in the face of uncertainty and threats.

‍First, don’t panic. The overwhelm is by design. Nonprofits​ should​ continue to pursue ​their​ mission and do ​their​ work. ​T​hose outside the sector​ should​ continue supporting the local organizations ​that​ you believe i​n​ with both your time and your donations.

‍Second, communicate proactively about the immense value that the nonprofit sector brings to the average American. Do not get caught trying to rebut the accusations being hurled against these groups; craft your own narrative.

‍Third, don’t go it alone. This is the time for individuals and organizations to stand together across sectors and issue areas to defend civil society as a whole​. ​​U​nderstand that a​n a​ttack on any one organization ​is a​ threat to all​.​ A vibrant and independent nonprofit sector benefits us all, whether we care most about fighting government corruption, defending minority rights, combating climate change, building economic justice, or supporting independent media. Build coalitions beyond your usual partners and work across sectoral silos to build up a strong defense against future threats.

‍Fourth, do a sober risk assessment. ​Consider s​cenario​s​ for a range of ​possible future ​outcomes and come up with multiple ​p​lans​ of response​. Don’t rush but do put in place the processes and resources you need for each of those backup plans. Calculate the minimum operating funds needed for the next six months. Consider diversifying financial and legal entities.

‍Finally, learn ​the ​lessons of resilience from America’s​ ​history and from ​the ​experiences of others who have lived through authoritarian encroachment​ around the world​. Even in the face of politically motivated attacks, many activists remain creative and resilient in continuing to pursue their missions. Some have reregistered as commercial entities or as nonprofits abroad​;​ they steadfastly fought back in courts against unfounded allegations​;​ and some even liquidated their organizations to work as informal unregistered coalitions.

These same steps—taking a deep breath, assessing risk, and breaking down our US exceptionalism—are critical for all of us feeling unmoored by each week’s flurry of ​e​xecutive ​o​rders. The ​feeling of ​overwhelm we are experiencing is deliberately ​created​ to encourage passivity. We can be shocked, but we must not be paralyzed. We’ve seen this playbook before. And if there is one lesson we carry from US and global history, it is this: resistance is not only possible–it is essential. The window is narrowing​ ​​b​ut it has not yet closed.

Originally published by the Kettering Foundation. From Many, We is a Kettering Foundation blog series that highlights the insights of thought leaders dedicated to the idea of inclusive democracy.