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Key Impacts on Large Nonprofits: <br />• Potential loss of federal funding: Nonprofits that <br />rely on federal grants, particularly those focused on <br />DEI initiatives, may be at risk of losing funding if <br />their programs are seen as prioritizing certain <br />demographic groups over " merit -based" criteria. <br />• Increased scrutiny and potential investigations: <br />Large nonprofits (those with assets of $500 million <br />t to investigati t to investigati <br />or more) could be subj*ec ons by <br />federal agencies regarding their DEI practices <br />• Changes in grant and contract terms: <br />contracts and grants may require certifications that <br />organizations ao not operate DEI programs that <br />violate applicable federal anti-discrimination laws. <br />• Adjustments to program language: Nonprofits <br />may need <br />rX�071171w <br />to refrarne their DEI initiatives to <br />emphasize " equal opportunity" rather than f <br />on specific identity -based inclusion efforts. <br />• Need to diversify f <br />ocusing <br />unding sources: Organizations <br />dp <br />previously dependent on federal support may need <br />0 <br />to seek alternative funding from private <br />foundations and donors to maintain their DEI <br />work. 0 <br />