The Challenge of Navigating DEI Restrictions

With new federal executive orders limiting DEI programs and funding, nonprofits face a growing challenge: how to maintain inclusive workplaces while staying compliant with evolving regulations.

Executive Orders 14168 and 14173 have restricted race-conscious hiring practices, curtailed DEI training in federally funded nonprofits, and increased legal scrutiny on workplace diversity efforts (Vox, 2025).

What’s at risk?

• Nonprofits could lose federal funding if they implement DEI programs deemed noncompliant.

• Diversity hiring efforts may face legal pushback under new affirmative action restrictions.

• DEI workplace training may need to be adjusted to avoid violating new federal guidelines.

However, nonprofits can still build inclusive workplaces—legally and effectively.

This article explores five compliant strategies for fostering workplace diversity without violating new DEI restrictions.

1. Shift to Skills-Based Hiring & Inclusive Job Descriptions

Why It Works: New restrictions target race-conscious hiring, but nonprofits can still prioritize inclusion through neutral, skills-based recruitment strategies.

• Use competency-based hiring – Focus on skills, qualifications, and lived experiences instead of demographic characteristics.

• Eliminate biased language in job postings – Ensure job descriptions attract diverse talent by emphasizing equity-driven workplace values.

• Expand recruitment channels – Advertise on diverse job boards and professional associations to reach a broader applicant pool.

• Emphasize mission alignment – Candidates from diverse backgrounds resonate with nonprofit missions—make that a key hiring focus.

Example: A nonprofit revamped its hiring process by replacing degree requirements with skills-based assessments, leading to a 40% increase in BIPOC applicants without violating federal restrictions.

Action Step: Audit your job postings and hiring policies to ensure equity-driven, legally compliant recruitment.

2. Strengthen Inclusive Workplace Policies Without DEI-Specific Labels

Why It Works: While federal restrictions target formal DEI programs, nonprofits can still implement inclusion-focused workplace policies.

• Develop “Workplace Culture” initiatives – Shift DEI language to “employee engagement” or “inclusive workplace policies.”

• Prioritize psychological safety – Ensure employees feel safe speaking up, fostering a more inclusive work environment.

• Enhance mentorship programs – Structured, skill-based mentorships support diverse leadership development.

• Use Employee Resource Groups (ERGs) – Though labeled differently, mission-aligned ERGs can still offer professional support and inclusion.

Example: A nonprofit rebranded its DEI committee as an “Employee Success & Culture Team”, maintaining inclusion efforts while avoiding regulatory scrutiny.

Action Step: Rename and reframe workplace policies to emphasize inclusion without triggering DEI compliance issues.

3. Implement Unbiased Performance Evaluations & Promotion Pathways

Why It Works: New DEI restrictions challenge affirmative action hiring, but nonprofits can still ensure equitable career advancement.

• Use structured performance evaluations – Prevent bias by standardizing evaluation criteria across teams.

• Implement blind promotion reviews – Remove names and demographic information from promotion assessments.

• Provide leadership training for all employees – Ensure underrepresented employees have equal access to career growth opportunities.

• Offer sponsorship, not just mentorship – Encourage senior leaders to actively advocate for diverse employees.

Example: A nonprofit introduced anonymous performance review scoring, increasing promotion rates for underrepresented employees by 30% without violating new DEI restrictions.

Action Step: Review performance and promotion policies to ensure they are transparent, structured, and inclusive.

4. Foster Inclusion Through Mission-Aligned Training & Education

Why It Works: While new regulations limit certain types of DEI training, nonprofits can still offer inclusion-focused education under different frameworks.

• Use “Workplace Collaboration” training – Frame DEI workshops as professional development for team-building and communication.

• Offer bias-awareness education without mandates – Make participation optional to avoid compliance conflicts.

• Focus on cultural competency – Teach inclusive leadership skills under “cross-cultural effectiveness” programs.

• Train managers in inclusive leadership – Ensure leaders model equity-driven behaviors.

Example: A nonprofit shifted its DEI training to “Effective Team Collaboration & Leadership,” maintaining inclusion education without violating executive order bans.

Action Step: Adjust training materials and language to emphasize workplace collaboration over DEI-specific terminology.

5. Build a Diverse Talent Pipeline Through Community Partnerships

Why It Works: While DEI hiring quotas are restricted, nonprofits can still strengthen workforce diversity through equitable outreach efforts.

• Partner with local organizations – Build relationships with diverse professional associations and community networks.

• Offer scholarships & internship opportunities – Create talent pipelines for underrepresented individuals.

• Collaborate with HBCUs & Minority-Serving Institutions – Expand recruitment efforts beyond traditional job boards.

• Engage affinity groups for hiring referrals – Use community connections to find diverse talent through trusted networks.

Example: A nonprofit partnered with Latino leadership organizations to source bilingual candidates, increasing diverse hiring without violating federal hiring restrictions.

Action Step: Expand partnerships with mission-aligned community organizations to build a long-term diverse talent pipeline.

Final Thoughts: Inclusion Beyond Compliance

Despite new federal restrictions, nonprofits can still build diverse, inclusive workplaces—legally and strategically.

By shifting language, frameworks, and hiring methods, organizations can continue DEI progress without regulatory risk.

The future of nonprofit diversity depends on adaptability. Organizations that align inclusion with mission-driven values will continue to thrive.

How Diversity.com Supports Nonprofits & Mission-Driven Organizations

At Diversity.com, we help nonprofits build diverse, inclusive teams that reflect the communities they serve. We support nonprofit leaders, HR professionals, and job seekers in navigating the evolving DEI landscape within the mission-driven sector.

Whether you're expanding your team, increasing leadership diversity, or seeking a meaningful career in the nonprofit world, we provide resources, a nonprofit job board, and expert insights to support your mission.

For Nonprofit Employers & HR Professionals:

✔ Create a free employer account — Find mission-driven professionals who share your commitment to equity and impact. Choose from single job postings or subscription-based plans for ongoing hiring needs.
✔ Access a diverse talent pool — Connect with qualified, purpose-driven candidates from diverse backgrounds to strengthen your organization.
✔ Stay informed with expert DEI insights — Get the latest on inclusive hiring best practices, leadership diversity strategies, and nonprofit workplace trends.

For Job Seekers in the Nonprofit Sector:

✔ Find nonprofit job opportunities with organizations that prioritize DEI — Work for mission-driven employers committed to equity and social impact.
✔ Create a free job seeker account — Discover roles that align with your values, purpose, and professional goals.
✔ Gain insights into inclusive nonprofit workplaces — Learn about organizational DEI commitments, hiring practices, and leadership diversity before applying.

We’re committed to helping nonprofit employers and job seekers build stronger, more inclusive teams to drive meaningful change.

Explore our platform today and take the next step toward a more equitable nonprofit sector.

If you have any questions or need assistance, feel free to Contact Us Here. Our dedicated support team is ready to help!

Related Articles

• The Nonprofit DEI Leadership Gap: Why Diverse Leadership Matters

• How Nonprofits Can Build Inclusive Workplaces & Improve Hiring Practices

• The State of DEI in Philanthropy: Are Funders Still Prioritizing Equity?

• 5 Community Engagement Strategies to Make Nonprofit Programs More Inclusive

• Why Nonprofits Must Prioritize Diversity to Stay Competitive in 2025

• Nonprofits & DEI Funding Cuts: How to Adapt After $1.7 Billion in Grant Cancellations

• Illinois’ Nonprofit Diversity Law Under Federal Attack: What This Means for DEI in Other States

• How Nonprofits Can Build Inclusive Workplaces & Improve Hiring Practices

• Should Nonprofits Speak Out on DEI? How to Take a Stand Without Risking Funding

• Losing DEI Funding? 5 Alternative Strategies for Nonprofits to Sustain Inclusion Efforts

• The DEI Lawsuit Against the Trump Administration: What It Means for Nonprofits

• Nonprofit Diversity in Jeopardy? How New Federal Orders Are Impacting DEI Initiatives

Sources & References:

• Vox. (2025). Trump’s sweeping new order tries to dismantle DEI in government - and the private sector. Retrieved from https://www.vox.com/

• Philanthropy News Digest. (2024). The Future of DEI in Nonprofit Governance. Retrieved from https://philanthropynewsdigest.org/