Saturday

04-19-2025 Vol 1935

Concerns Rise Over Government Takeover of Nonprofit Amid Executive Power Expansion

On March 17, members of the Department of Government Efficiency (DOGE) forcibly entered the US Institute of Peace’s (USIP) offices under a directive from President Donald Trump, disregarding the organization’s status as an independent nonprofit.

This unprecedented use of presidential power against an independent nonprofit has raised significant concerns, particularly among organizations receiving federal funds or whose missions may conflict with the administration’s ideological agenda.

Established as an independent nonprofit through a congressional charter in 1984 under Ronald Reagan, USIP aims to prevent and resolve international conflicts.

Despite this mission, the organization became a target in the administration’s push to “reduce the federal bureaucracy.”

What followed was not merely a bureaucratic belt-tightening but a forcible takeover of a nonprofit long regarded as nonpartisan and mission-driven.

As lawsuits challenging the administration’s actions unfold and uncertainty deepens, the USIP takeover raises urgent concerns within the nonprofit sector about legal protections, preparedness, and the limits of executive authority.

### How the Takeover Unfolded

In a February 19 executive order, President Trump listed USIP among “government entities” to be pared down to the bare minimum.

According to USIP’s former Executive Vice President Tara D. Sonenshine, the directive essentially aimed to shut down the nonprofit.

After the DOGE team failed to gain entry to the institute’s headquarters through threats and intimidation, Trump terminated the nonprofit’s voting board members.

The remaining ex officio board members then fired Acting President and CEO George Moose and appointed new leadership.

Backed by armed police, FBI agents, federal attorneys, and even USIP’s own private security—Inter-Con switched sides after threats to have federal contracts canceled—DOGE staff forcibly entered USIP’s headquarters.

They replaced the institute’s new leader with one of their own team members, removed some USIP employees for “trespassing,” and took down the institute’s website.

By the end of March, the Trump administration had dismissed most of USIP’s headquarters staff, offering severance only to those who agreed to waive their right to pursue legal action.

Some employees based Overseas were ordered to return to the United States.

It remains unclear whether the institute will honor its pending grants or contracts for fellowships, research, and education on peacebuilding projects.

### Implications for the Nonprofit Sector

The legality of these actions is still a matter for the courts.

Moose stated in an interview that prior to the raid, the nonprofit had reminded DOGE for “many weeks” that the institute is “not a federal agency and, therefore, the federal government has no entitlement to come and take over our building.”

The Trump administration, however, argued in court that it possesses the authority to dictate the fate of the nonprofit.

In early April, a federal judge issued a preliminary ruling that allowed the institute’s privately financed headquarters and assets to be transferred to the General Services Administration.

President Trump tasked this agency with the sale of hundreds of federal buildings, complicating USIP’s future even further.

Following the takeover, most advocacy organizations supporting nonprofits maintained public silence, with notable exceptions including the Alliance for Peacebuilding and Robert F. Kennedy Human Rights.

Both organizations condemned the Trump administration’s actions and offered support to the institute.

### A Template for Future Attacks?

The USIP takeover might appear to be an anomaly due to the nonprofit’s close ties to the federal government, which legal scholar Ellen P. Aprill described as creating a “hybrid governmental-charitable entity.”

However, it reflects broader vulnerabilities that other organizations may face under an aggressive administration.

The Trump administration has already targeted nonprofits through freezing federal grants, canceling contracts, threatening future funding, and in certain cases, outright defunding programs.

This pattern of behavior has included the elimination of government agencies and employees that support public programs, and attacking diversity, equity, inclusion, and accessibility efforts.

Historically, the Trump administration has focused its hostility on various nonprofits with governmental connections, such as the Kennedy Center, the Wilson Center, and the Smithsonian Institution.

And the imposition of presidential control over hybrid nonprofits isn’t likely to conclude with USIP, especially in light of Trump’s “Restoring Truth and Sanity to American History” executive order.

Two other recent incidents have further underscored the vulnerability of nonprofits to political intimidation and retaliation.

Harvard University faced threats after refusing to comply with the administration’s demands for policy changes; the administration subsequently froze more than $2 billion in federal funds for the university and threatened to revoke its tax-exempt status.

According to an April 16 CNN report, the IRS is planning to follow through on that threat.

In another instance, DOGE met with the Vera Institute of Justice to discuss a review of its federal grants, seemingly unaware that those funds had already been cut.

The Vera Institute is an independent nonprofit think tank founded in 1964, focusing on ending mass incarceration.

During the DOGE meeting, it was disclosed that the agency intends to assign teams “to every institute and agency” receiving congressionally appropriated funds.

Unlike USIP, neither Harvard nor the Vera Institute were created by Congress.

In a post on Bluesky, the Vera Institute stated, “While we are the first to be targeted in this way, we know that we will not be the last.”

### Planning for Government Intrusions

The actions taken against USIP do not automatically indicate that widespread threats to nonprofits are imminent.

Nevertheless, the administration’s ongoing aggression toward the nonprofit sector has prompted leaders to consider how prepared they are for potential government interference.

In this climate of heightened political targeting, nonprofit leaders may find themselves grappling with weighty questions: Are we vulnerable?

What protections do we have in place?

How should we respond if we are targeted, even if such targeting proves baseless?

Reflecting on the USIP takeover, experts believe it signals a critical moment for nonprofits.

In an era of increased political targeting, nonprofit leaders can undertake several steps to prepare for potential government interference:

### Know Your Rights

Consulting legal counsel is vital for nonprofits to understand the limits of government authority over their operations, data, financial information, and more.

Leadership and staff should be educated on recognizing and responding to subpoenas, search warrants, or politically motivated inquiries.

Training will enhance readiness should these types of government intrusions occur.

### Develop a Crisis Response Plan

Every organization should maintain a crisis response plan.

Start by conducting a risk assessment to identify vulnerabilities.

Select a crisis response team, including spokespeople for media and legal inquiries.

Practice responses to a variety of scenarios, even those that seem unlikely.

Advance planning can help reduce confusion and mistakes under pressure.

### Protect People and Data

The safety and privacy of the people the nonprofit serves, along with staff, board, and volunteers, must be prioritized.

It’s advisable to review data security practices and avoid collecting and storing sensitive information unless it’s absolutely necessary.

Updating organizational policies on data and training all personnel is essential.

### Engage Your Community

Maintaining robust relationships with funders, partners, and other stakeholders can provide vital support in a crisis.

Keeping them informed about operational practices and responses to challenges can foster a supportive network.

If targeted, a strong community can serve as a powerful tool in defending the organization’s credibility.

### Broader Patterns and Sector Resilience

The USIP takeover aligns with the Trump administration’s broader objective of reshaping federal governance and expanding presidential powers.

Across various federal agencies, budget cuts, grant terminations, and the removal of staff and leadership have been common, often with DOGE’s involvement.

Critics have labeled this weaponization of executive power as detrimental, prompting legal scholars, civil liberties organizations, and politicians to voice their discontent while public protests have grown increasingly vigorous.

This pattern forms part of a broader effort by the Trump administration to intimidate, discredit, and defund institutions it perceives as misaligned with its ideological goals.

These developments may signal a critical moment for nonprofits, exposing an alarming erosion of the norms and laws governing the relationship between civil society and federal government.

For nonprofits, the USIP takeover and similar incidents serve as urgent reminders to reassess vulnerabilities and fortify preparedness.

image source from:https://nonprofitquarterly.org/the-trump-takeover-of-the-us-institute-of-peace-what-nonprofits-need-to-know-and-how-to-prepare/

Charlotte Hayes