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Massachusetts funders and nonprofits scramble after federal attacks on DEI programs
Summary
Nonprofit leaders and funders told legislators that cuts, grant uncertainty and legal confusion are forcing organizations to redirect resources to compliance and risk management while demand for services rises.
Leaders of Massachusetts philanthropic and nonprofit organizations told the joint committee on racial equity that recent federal actions targeting diversity, equity and inclusion have forced many nonprofits into defensive modes — diverting staff time to legal questions, pausing programs, or shrinking services — even as community demand increases.
Why it matters: Nonprofits supply critical services across the state — from housing and elder care to youth education — and many rely on a mix of state, local and federal grants. Witnesses said unclear federal directives and threats to rescind grants have caused organizations to assess compliance risk, sometimes at the cost of direct service…
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