Nonprofit boards are facing a rapidly shifting landscape this fall. From challenges to OpenAI’s nonprofit governance structure to new state data privacy laws and shifting federal policies, the headlines underscore how mission-driven organizations must adapt to protect their credibility and impact.
These developments offer timely reminders for boards to strengthen oversight, revisit compliance practices, and ensure their governance truly aligns with the public interest.
Here’s a look at the news shaping nonprofit boardrooms in October 2025, and what it means for effective stewardship.
Coalition Challenges on OpenAI's Nonprofit Governance Structure
A coalition called EyesOnOpenAI, made up of foundations and nonprofits, is publicly challenging OpenAI’s governance. They argue that OpenAI’s setup, where a nonprofit oversees a related for-profit arm, may allow charitable assets to be used for private gain instead of the public good. They have petitioned the California attorney general to investigate the fairness and transparency of that structure.
The coalition points to recent deals between OpenAI and investors as evidence that the public mission is being overshadowed by financial interests. They warn that board overlap between the nonprofit and for-profit entities makes it harder to distinguish whose interests are being served. They stress that nonprofit boards must preserve independence, document decisions clearly, and ensure that all assets, whether money, intellectual property, or data, are treated as part of the public mission.
For nonprofit boards generally, this case serves as a warning. When a nonprofit partners with or governs a commercial enterprise, boards must maintain clear guardrails between mission-driven goals and profit motives. Oversight, transparency, and strong conflict-of-interest policies are more important than ever to protect public trust and ensure that charitable status is not misused.
New State Data Privacy Laws, Other Nonprofit Trends
In Nonprofit Sector Trends to Watch in 2025, The MJ Companies highlights four major pressures reshaping nonprofit operations: cybersecurity and data privacy risks, rapid growth in AI use, staffing and workforce challenges, and evolving legal/compliance demands. Each carries potential upside, but also notable risks, from reputational damage to regulatory penalties.
For nonprofit boards, these trends mean oversight must evolve. Directors should push for stronger data safeguards, ensure AI is used ethically and transparently, and demand that leadership present realistic strategies for talent retention under tight labor markets. They should also stay ahead of state and federal shifts in privacy and nonprofit regulation, anticipating changes that could affect operations or status.
This isn’t just “future talk.” Boards must adapt now. By integrating risk management into governance, staying informed on changing laws, and asking tough questions about technology and workforce strategy, board members help ensure their organizations remain trustworthy, resilient, and mission-centered.
Impact of Executive Orders and Policy Shifts on Advocacy, Funding
Recent executive orders carry real weight for charities and mission-driven organizations. These directives can reshape regulatory expectations, funding priorities, and the operational environment in sectors like education, health care, and advocacy.
Because nonprofits are often downstream from federal agencies, they may feel these orders through changes in grant conditions, compliance demands, or shifting policy thresholds. For example, an order altering federal priorities in education or immigration can put nonprofits working in those fields under sudden new pressures. Moreover, smaller organizations are especially vulnerable when they lack capacity to pivot quickly.
For boards, the stakes are clear. Directors should press leadership to anticipate and model for abrupt policy changes, not merely react as they arise. They should demand legal and risk assessments of how executive orders might affect their programs, funding, and reputation. Boards should also reinforce flexibility in strategy and funding mix so the organization can stay steady amid political shifts.
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About The Author
- Adam Wire is a Content Marketing Manager at OnBoard who joined the company in 2021. A Ball State University graduate, Adam worked in various content marketing roles at Angi, USA Football, and Adult & Child Health following a 12-year career in newspapers. His favorite part of the job is problem-solving and helping teammates achieve their goals. He lives in Indianapolis with his wife and two dogs. He’s an avid sports fan and foodie who also enjoys lawn and yard work and running.
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