Nonprofit Board News, November 2025: Compliance, Funding, and Governance Pressures

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Nonprofit boards face new pressures as regulations shift and economic challenges grow. The stories below highlight key changes shaping board oversight and decision-making. Each update shows why strong governance matters more than ever.

This quick summary of the latest nonprofit boards news provides a clear view of the issues affecting nonprofit leaders today.

Final Rule on Public Service Loan Forgiveness Raises Nonprofit Scrutiny

The Department of Education finalized a rule on October 30 granting it new authority to exclude employers deemed to have a “substantial illegal purpose” from qualifying as eligible employers under the PSLF program.

While intended to safeguard taxpayers, the vague language is viewed by many nonprofits as potential regulatory overreach that creates uncertainty and legal risk for certain mission-driven organizations.

Impact: Forces boards, especially those engaged in politically sensitive or advocacy work, to meticulously review all organizational activities, policies, and public statements to ensure compliance and mitigate the risk of losing PSLF eligibility for their staff.

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Boards Face Enhanced Compliance for Beneficial Ownership Information

The new Beneficial Ownership Information (BOI) reporting requirement under the Corporate Transparency Act (CTA) is in effect for 2025, although enforcement is subject to legal challenges. While many 501(c)(3) charities are exempt, numerous other nonprofit types (like certain social and recreational clubs) are not. The risk of daily fines for non-compliance is significant.

Impact: Boards must urgently confirm their organization’s specific exemption status and, if non-exempt, establish rigorous internal policies and procedures to track and report ownership information accurately.

Economic Volatility and Government Funding Cuts Strain NPO Financials

Recent reports highlight that nonprofit organizations are navigating one of the most challenging operating environments in years, marked by diminishing federal and state funding, rising operating costs (averaging 13-15% increases for some), and simultaneous record-high demand for services. This puts immense pressure on boards to prioritize financial resilience.

Impact: Boards must pivot to aggressive and diversified revenue strategies, strengthen financial reserves, and rigorously review budgets, often requiring cuts to non-essential programs.

IRS Moves to Allow E-Filing for Miscellaneous Determination Requests

The Internal Revenue Service (IRS) is revising Form 8940, Request for Miscellaneous Determination, and its instructions to allow for electronic filing. This determination is used for various nonprofit requests, such as recognizing foundation status or changes to the organization’s status.

Impact: A procedural change that should streamline compliance and reduce administrative burden, requiring boards to ensure their internal teams are ready to utilize the new electronic process.

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About The Author

Adam Wire: 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.