Vermont Business Magazine On April 22, 2025, nonprofit leaders from across Vermont convened in Montpelier for Nonprofit Legislative Day to engage with policymakers and their peers around key issues impacting their organizations and our communities. In the morning, nonprofits networked over coffee and testified in Economic Development committees about their vital work. Later, a panel discussion on navigating the impact of federal actions featured Senator Kesha Ram Hinsdale, Jill Martin Diaz of Vermont Asylum Assistance Project, and Daniel Barlow of the People’s Health and Wellness Clinic.
“This is a beyond critical time to be filling in the gaps and to be keeping people whole and healthy,” said Senator Kesha Ram Hinsdale on the importance of nonprofits in this moment.
In the afternoon, participants had the opportunity to hear directly from lawmakers about their work this session. The event was organized by Common Good Vermont, a statewide program of United Way of Northwest Vermont dedicated to uniting, strengthening, and advocating for Vermont’s vital nonprofit sector.
This day of learning, connection, and collective action was a bright spot at a time of uncertainty for nonprofit organizations and the communities they serve. Since January 20, 2025, the Trump administration has issued a series of executive orders and directives that have substantially impacted nonprofit organizations, particularly those receiving federal funding and subsectors such as immigration services, environmental protection, and LGBTQ+ rights. New actions continue to threaten the nonprofit sector and those they serve:
- In recent weeks, the Department of Government Efficiency (DOGE) has taken unprecedented actions affecting nonprofits, including seizing control of the federal grants.gov website, entering nonprofit offices, and attempting to embed staff in nonprofit organizations that receive federal funding.
- Vermont nonprofit funding continues to be affected. In the past month, for example, organizations like the Vermont Humanities Council, Shelburne Farms, Vermont Folklife and others saw their federal grants from the National Endowment for the Arts abruptly terminated. The Vermont Historical Society lost $175,000 from the Institute of Library and Museum Services. The Vermont Language Justice Project lost funding to support multilingual, educational videos about vaccines.
- Last week, National Volunteer Week, AmeriCorps staff were put on administrative leave, putting the service program that enhances the work of nonprofits and fosters new leadership at risk. National Civilian Community Corps members were also “demobilized,” including a team serving locally on a project with Bennington County Habitat for Humanity.
- Two pieces of legislation have been introduced in Congress that threaten to strip 501(c)(3) status from certain nonprofits: the FENCE Act (S.497), which targets organizations supporting undocumented immigrants, and the Protecting Federal Funds from Human Trafficking and Smuggling Act (H.R. 1168).
"These abrupt federal actions have created unprecedented challenges for Vermont's nonprofit sector, which provides essential services to our communities," said Emma Paradis, Manager of Policy & Strategic Initiatives at Common Good Vermont. "Many of our state's nonprofits rely on federal funding to deliver critical services in healthcare, housing, food security, and other vital areas – threats to these funds put Vermonters at risk."
While some of these actions have faced legal challenges—with the National Council of Nonprofits and others filing lawsuits that have resulted in temporary stays—the situation continues to evolve rapidly, creating operational uncertainty for many Vermont nonprofits.
"Common Good Vermont is committed to supporting our nonprofit partners through this challenging period,” affirmed Martin Hahn, Director of Common Good Vermont. “We are actively monitoring these developments, advocating for the sector, and providing resources to help organizations navigate this uncertain landscape. We stand united with our national partners in defending the critical role nonprofits play in our democracy and communities."
About Common Good Vermont
Common Good Vermont, a statewide program of United Way Northwest Vermont, is dedicated to uniting and strengthening Vermont’s nonprofit sector. Common Good Vermont is the go-to resource for Vermont’s nonprofit community to share resources, gain skills, and build partnerships. Learn more and become a member at www.commongoodvt.org.
April 25, 2025 — Common Good Vermont
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