Nick Robinson

Evolving Threats to the Tax-Exempt Status of 501(c)(3) Nonprofits Three-part series highlights recommendations from ICNL Enhancing Digital Civic Space through the OGP Process, focusing on specific policy areas

And, of course, this may foreshadow future efforts the administration could undertake to change the IRS's illegality doctrine: www.icnl.org/post/news/ev...

All nonprofits should be concerned. This type of politicization could frighten many Americans from entering the nonprofit sector if they aren't sure their loans will be repaid. A future administration could also broaden the list of activities that trigger this regulation. 9/9

In sum, nonprofits truly engaged in serious illegal activity can already have their exempt status revoked by the IRS. This regulation is different. It allows for potentially politicized use of the public service loan program against nonprofits working on certain issues. 8/9

To regain eligibility for the public loan forgiveness program, a nonprofit would have to wait 10 years or submit to a Department authorized "corrective action plan". 7/9

Further, to be eligible nonprofits have to certify they are in compliance with this regulation. This can potentially open them up to liability under the False Claims Act where 3rd parties can sue if a nonprofit "defrauded" the U.S. gov't. 6/9

It then allows the Education Dept. to unilaterally determine by a "preponderance of the evidence" whether a nonprofit has engaged in "activities that have a substantial illegal purpose". The regulation does not envision appeal to an independent court. 5/9

This proposal defines "substantial illegal purpose" to include only a set of crimes related to aiding and abetting violations of immigration law, anti-discrimination law (think universities), disorderly conduct (think protests), and other crimes this administration is focused on. 4/9

Evolving Threats to the Tax-Exempt Status of 501(c)(3) Nonprofits Three-part series highlights recommendations from ICNL Enhancing Digital Civic Space through the OGP Process, focusing on specific policy areas

The Education Department claims the regulations are based on the IRS's "illegality doctrine", but the IRS already can revoke a nonprofit's status if it has an illegal purpose or engages in substantial illegal activities. Something else is going on here. 3/9 www.icnl.org/post/news/ev...

Under the regulations, a nonprofit that the Education Department unilaterally determines engages in “activities with a substantial illegal purpose” is ineligible for the public loan forgiveness program. 2/9

William D. Ford Federal Direct Loan (Direct Loan) Program The Secretary proposes to amend the regulations on the Public Service Loan Forgiveness (PSLF) program under 34 CFR 685.219 to exclude employers that engage in activities that have a substantial illega...

The administration proposed concerning new regulations today that would open up nonprofits to investigation, potential third party litigation, and even gov't imposed "corrective action plans" if their staff participate in public loan forgiveness 1/9 www.federalregister.gov/documents/20...

It's still early days, but I would expect that these laws will be challenged in court and so it will be important to watch what lines the courts draw for states in this space. 6/6

Foreign Agents Registration Act Amidst concern about foreign influence, the Justice Department has ramped up enforcement of the Foreign Agents Registration Act (FARA). While it is understandable that policymakers want to protect U.S...

Nonprofits have had to recently deal with more aggressive enforcement of #FARA. These state laws complicate things further - potentially creating 50 different foreign influence schemes for nonprofits to navigate. 5/6 www.icnl.org/our-work/us-...

There are strong First Amendment and federal preemption arguments against these laws. They also have unintended consequences. In Nebraska, one has to register for setting up a talk for a Chinese dissident or the Chinese Communist party. The law makes no distinction. 4/6

It is unclear how these new laws will be enforced, but they are already causing headaches. If a nonprofit receives money from a US company with 25% Chinese ownership it is barred from fundraising in Florida. But nonprofits aren't well equipped to know how a company's ownership is structured. 3/6

State Foreign Influence Legislation Impacting Nonprofits July 2025 States have recently enacted new types of legislation to combat perceived foreign influence, particularly from China. Many of these bills either explicitly target […]

At ICNL we have a new briefer out about this wave of laws, their implications for nonprofits, and the constitutional and policy concerns they raise. 2/6 www.icnl.org/our-work/us-...

Nonprofits are getting caught in the middle of a fight in the states over how to combat Chinese influence. A new Florida law bans nonprofits from fundraising in the state if they receive anything of value from those from China. Nebraska and Arkansas just enacted foreign influence registries. 1/6

Trump has federalized at least 2,000 National Guard forces and reportedly plans to deploy troops to Los Angeles over Governor Newsom’s objections. If that happens, it will be the first time since 1965 that a president has sent troops into a state without a state request. 1/19

The piece examines measures in place to prevent politicized investigations by the IRS and steps nonprofits can take to protect themselves. While the administration and others may try to politicize nonprofit status there are guardrails in place: guardrails that need to be protected and strengthened.

Check out ICNL's new analysis on threats to the tax exempt status of 501(c)(3) nonprofits. It looks at 3 grounds for revocation that have been getting a lot attention: (1) the illegality doctrine; (2) activity contrary to public purpose; and (3) support for terrorism www.icnl.org/evolving-thr...

Also just filed: @knightcolumbia.org brief in support of Sue Mi Terry, arguing that the First Amendment requires that the Foreign Agents Registration Act be construed narrowly. knightcolumbia.org/content/knig...

FARA Is a Catchall Statute—and That’s a Problem Newly proposed regulations highlight how FARA’s overbreadth creates confusion and risks politicization.

"Whether or not the proposed regulations by the Justice Department are ultimately adopted, FARA will remain an overbroad law that creates both regulatory confusion and serious civil liberties concerns," writes @nickrobinson5.bsky.social.

This is not a partisan issue. Catchall statutes are dangerous to everyone and create confusion - chilling constitutionally protected speech and association. Trump should not adopt these Biden era regs and Congress needs to reform the Act. Otherwise, the courts need to step in.

Amending and Clarifying Foreign Agents Registration Act Regulations The Department of Justice ("DOJ," "the Department") is proposing amendments and other clarifications to the scope of certain exemptions, to update and add various definitions, and to make other modern...

DoJ recently came out with proposed FARA regulations. Instead of providing bright line rules to tailor enforcement, they just increased DoJ's discretion to enforce - or not enforce - it against who they wish. Comments are due March 3. www.federalregister.gov/documents/20...

It makes sense why FARA is a favored tool for these investigations. Even if DoJ has historically focused enforcement in certain areas, you can make a claimed violation of FARA against almost anyone who has international connections - it's that broad. scholarship.law.duke.edu/dlj/vol69/is...

Congressional Investigations

This past Congress saw a concerning spike in investigations against nonprofits, mostly by House Republicans. Many of them were based on FARA, including against environmental and human rights organizations. #FARA www.icnl.org/congressiona...

FARA Is a Catchall Statute—and That’s a Problem Newly proposed regulations highlight how FARA’s overbreadth creates confusion and risks politicization.

I have a piece out in @lawfare.bsky.social on how the Foreign Agents Registration Act is a catchall statute that is increasingly being politicized against disfavored voices in the U.S. and causing regulatory confusion. There is real danger it will get far worse. www.lawfaremedia.org/article/fara...