The Nonprofit Killer: A Fun Little Bill That Could Accidentally Torch Civil Society

By the Totally Chill but Increasingly Alarmed Folks at Santa Cruz Works

Imagine you’re running a nonprofit. You help startups. Or fight climate change. Or teach kids to code. You’re busy doing good things and not getting paid enough and surviving off La Croix and leftover granola bars from community events.

Then, one morning, you open your inbox and see this:

🚨 The U.S. government has removed your tax-exempt status. You now owe us everything, and you’re possibly a terrorist. Have a nice day. ☕️

Wait…what?

Welcome to the world of H.R. 9495 — a sneaky little clause nestled in a new tax bill like a poisoned jellybean in a jar of wellness supplements. It lets the executive branch revoke your nonprofit status if they think (not prove, not even kinda show) that you support terrorism.

Now, you might be thinking:
“Good! I don’t support terrorism. I just support ocean science, housing equity, and the occasional protest sign.”

Problem is, the definition of “supporting terrorism” here is flimsier than a wet napkin. It doesn’t require actual evidence. Or a fair trial. Or even telling you what you’re being accused of.

Just… poof. You’re out.

Your donors disappear. Your programs collapse. Your staff gets sad. Your mission dies quietly in the alley behind bureaucracy.

At Santa Cruz Works, we’re not usually the “raise the pitchforks” kind. We build ecosystems, not echo chambers. But this? This is some boss-level authoritarian cheat code stuff.

Nonprofits are the nerdy, scrappy backbone of America. We build, advocate, heal, teach, invent, and repair the things that government and business often miss. Giving one person — any person — the power to nuke our tax status without due process is like giving a toddler the nuclear football because they’re “feeling tantrum-y.”

This isn’t about politics. It’s about process. Checks and balances. The right to defend your mission when it’s under fire. We don’t want the tax code turned into a weapon. Especially one aimed at the very people trying to build a better world.

So what do we do?

We speak up. We email our reps. We remind them that a healthy democracy depends on dissent, nonprofit weirdos, and way too many community events with hummus trays.

Because if this bill passes, we’re all just one misunderstood tweet away from extinction.