Nonprofits are reeling, with many reporting fear of government reprisal and/or public or private backlash.
Some have even started "scrubbing" their public presences of "controversial" language.
"There's been what I call this chilling effect," says Sean Gibbons, CEO of The Communications Network.
But the fight is far from over, Gibbons points out.
A customized collection of grant news from foundations and the federal government from around the Web.
The Charities Aid Foundation has set up a scheme, called the Social Enterprise Assist, that will render interest-free loans of up to £10,000 each to help social enterprise start-ups.