Are Climate Nonprofits Losing Tax-Exempt Status? What It Means in 2025
Are Climate Nonprofits Losing Tax-Exempt Status? Here’s What’s Going On in 2025
Nonprofits that help fight climate change are worried. There’s talk that they might lose their tax-exempt status soon. This means they could be taxed like a regular business. That could make it harder for them to raise money and help the planet.
Let’s break it all down in a simple way so you can understand what’s happening and why it matters.
What Is a Nonprofit?
A nonprofit is a group that works to help others—not to make money for owners. Many nonprofits focus on helping people, animals, or the environment. In the U.S., if a nonprofit follows special rules, it doesn’t have to pay taxes. This is called being tax-exempt.
Because they don’t pay taxes, they can use more of their money to help their cause. People who give them money can also write off those donations on their own taxes.
Why Are Climate Nonprofits Worried Now?
In 2025, there are rumors that President Donald Trump might take action to remove the tax-exempt status of some climate nonprofits.
The reason? Some government leaders think that fighting climate change is not a “real” charitable cause under the current rules. There is also talk about changing how U.S. nonprofits can use grant money, especially if it goes to projects in other countries.
This has made many climate-focused nonprofits feel nervous. If these changes happen, they might:
- Lose important donations
- Be taxed like a regular business
- Not be able to support clean energy or climate work outside the U.S.
What Might Change?
Here are some of the possible changes being discussed:
1. Climate Work May Not Count as “Charity”
Some new IRS rules may say that working on climate change is not a qualified charitable activity. If that happens, climate nonprofits could lose their tax benefits.
2. Limits on International Work
Many climate nonprofits work with other countries to stop pollution and protect the planet. New rules may limit how U.S. grant money is used overseas, making it harder to work globally.
3. More IRS Audits
Nonprofits could face more audits or reviews, especially if they speak out about politics or support protests. This could scare donors and slow down their work.
What Are Nonprofits Doing About It?
Climate nonprofits aren’t sitting back—they are getting ready to fight back. Here's what they’re doing:
✅ Talking to Lawyers
Top lawyers and experts say these changes may not be legal. They are already making plans to take action in court if needed.
✅ Joining Together
Many groups are working together to share ideas and protect each other. This makes their voice stronger.
✅ Telling the Public
They are also talking to the public and news outlets. They want everyone to know that fighting climate change is important—and should be protected.
Why This Matters to You
You might be wondering, “Why should I care?”
Here’s why:
- Clean air and water: Climate nonprofits help make sure we have clean air to breathe and safe water to drink.
- Weather safety: These groups work to reduce the effects of wild weather like floods and fires.
- Jobs and clean energy: Many nonprofits support new jobs in solar and wind power.
If these groups lose their tax-exempt status, they might not be able to do as much good work. That could affect your community, your health, and the future of the planet.
What Can You Do to Help?
Even if you’re not part of a nonprofit, you can help in small ways:
🌎 Stay Informed
Keep up with the news about climate and nonprofit rules. Knowing what’s going on is the first step.
🌱 Support Climate Groups
If you care about the environment, support climate nonprofits now. Donations and kind words go a long way.
📢 Speak Up
Call or email your local leaders and tell them you care about climate nonprofits. Your voice matters.
Final Thoughts
It’s 2025, and climate nonprofits are facing a big challenge. New rules from the IRS could make it harder for them to help the planet. But many people—lawyers, donors, and everyday citizens—are standing with them.
Helping the Earth should never be a crime. These groups are working hard to make the world better for all of us. And they need our support now more than ever.
Whether you’re a student, a business owner, or just someone who loves the outdoors—this affects you. Let’s stay informed, speak up, and protect the groups that protect our future.