Beyond the Headlines: Executive Power and the Limits of 501(c)(3) Revocation

Recent discussions within the federal government have raised concerns in the nonprofit sector about expanding executive authority to revoke 501(c)(3) status. Proposals have ranged from targeting organizations suspected of promoting terrorism to nonprofits misaligned with an administration’s political priorities. These conversations have understandably sparked anxiety among some nonprofit leaders. However, it’s important to clarify that tax-exempt status cannot be revoked by executive order or unilateral action. This article from the Council for Nonprofits helps separate myth from reality when it comes to 501(c)(3) revocation.