This page is curated in partnership with the Chicago Bar Foundation and the Chicago Lawyers Committee for Civil Rights.
Nonprofits in Illinois and beyond are facing heightened federal scrutiny for their programs around diversity, equity, and inclusion (DEI) as well as related threats to their federal funding and other government pressure.
This collection of legal resources is intended to provide helpful information and resources for nonprofits in Illinois as well as referrals to available free legal help to help navigate these issues.
While “DEI” is the target of recent executive orders and directives, there is no single definition of DEI. Instead, “DEI” is often used as a catch-all term to describe a variety of programs and policies. As a result, the legal risk surrounding a “DEI” program depends on the specifics of the program.
In assessing the legal risk, organizations should focus on assessing compliance with federal anti-discrimination laws. Treating employees or other stakeholders differently based on race, sex, or another protected characteristic could be unlawful under anti-discrimination laws and recent executive orders and federal directives.
Each organization should assess whether its policies, programs, and communications on DEI and related issues could place it at risk of being deemed unlawful discrimination. Several law firms have published detailed articles with more background on the legal risks for DEI programs and how to assess those risks.
The Department of Justice released detailed guidance in July 2025 for what it considers to be unlawful discrimination by federally funded entities.
While this new guidance may not always be consistent with governing statutes and court interpretations and is likely to be challenged in the courts on that basis, it is important for all nonprofits that receive federal funding to be familiar with this guidance in assessing their own programs. Several law firms have published articles about this new guidance and what it means for nonprofits that receive federal funding, two of which follow below:
The President released an executive order in August 2025 that makes major changes to the federal discretionary grantmaking process. While parts of the executive order may not be consistent with governing statutes and court interpretations and is likely to be challenged in the courts on that basis, the order will have a substantial impact on all organizations that receive discretionary grants from a federal agency.
Several law firms have published articles about the new executive order, two of which follow below:
The Department of Justice announced in May 2025 that it will utilize the False Claims Act to investigate and pursue claims against recipients of federal funds that knowingly violate federal civil rights laws.
Several law firms have published articles about this potential new risk and strategies for response, including the post below:
The information presented on this website is provided for informational purposes only and should not be construed as legal advice. You should consult a trusted lawyer to learn more about your rights and potential legal options.