The Why, What, and How of Effective Nonprofit Advocacy

By: Mansi Seth

“Advocacy” and “lobbying” are words commonly avoided by nonprofits. Many organizations steer clear of advocacy out of fear that they’ll come off as “too radical” or “too political.” Nonprofit leaders recognize that it’s important to have an active voice in larger conversations about their communities, but they’re discouraged by the potential repercussions. Fear of risking their organization’s tax-exempt status or losing donor funding can understandably deter nonprofits from speaking out, but fear alone shouldn’t be the reason nonprofits fail to take action. By understanding why nonprofit advocacy matters, what it can look like, and how to engage in it, nonprofits can safely go about magnifying their impact.

Why Nonprofit Advocacy Matters

Advocacy should be a core competency of all nonprofit organizations. Nonprofits are seen as “mediating structures” that communicate the perspectives of people to decision-makers, bridging the gap between the public and institutions. They play a critical role in educating the population about important social issues and helping individuals become active and informed participants in democracy. Accordingly, nonprofits should leverage their civic voice to further their mission and uplift the people they serve — not limiting their reach to their own program and organizational goals, though advocacy can certainly help in those areas.

Consider these figures:

• Advocates are seven times more likely to donate to your organization than non-advocates.
• Advocacy alerts receive five times as many responses as fundraising appeals.
• Connecting a fundraising appeal with an advocacy initiative can potentially triple the number of donations you receive.

Effective communication is key to helping nonprofits promote their mission, secure funding sources, and respond to community needs, and advocacy is the means through which nonprofits can achieve these objectives. Advocacy enables organizations to create meaningful, long-lasting change.

What Nonprofit Advocacy Can Look Like

Mission-Based Advocacy

The most prevalent and extensive form of advocacy is bringing awareness to the organization’s mission, also known as ambassadorship. Board members, donors, staff, volunteers, and supporters can all be ambassadors for the organization. Within their own circles, they’re the face of the organization; they articulate its mission and garner support. Nonprofits can greatly expand their reach through these frequent, small-scale advocacy efforts.

Nonprofits can also consider joining forces with organizations that share similar or overlapping mission statements, working hand-in-hand to advance the mission. They can expand the scope of their influence by tapping into each other’s networks and compiling resources. Regardless of whether mission-based advocacy is carried out alone or in collaboration, all nonprofit leaders can and should engage with it before exploring more advanced forms of advocacy.

Lobbying

There is a common misconception that nonprofit organizations can’t lobby. In actuality, most nonprofits can legally engage in lobbying without posing a risk to their tax-exempt status. The Internal Revenue Service (IRS) defines lobbying as “carrying on propaganda, or otherwise attempting, to influence legislation.” Nonprofits lobby to try to persuade legislators to pass laws that are helpful to their mission and overturn laws that are harmful.

Lobbying activities fall into two main categories: direct and grassroots. Direct lobbying occurs when the organization attempts to influence legislation through direct communication with public officials. Grassroots lobbying occurs when the organization attempts to influence legislation by affecting the opinions of the general public.

Political Activity

Lobbying and political activity are often and easily confused. Lobbying refers to activities that attempt to influence legislation, while political activity refers to partisan campaign activity or nonpartisan voter participation. Under IRS regulations, nonprofits can lose their tax-exempt status if they engage in partisan campaigning, which includes political campaigns and electioneering.

Nonprofits may, however, engage in voter registration and voter engagement activities. Through voter registration drives, voter education programs, and candidate forums, nonprofits can help educate the public on issues in a nonpartisan manner. The line between partisan campaign activity and nonpartisan voter participation can be very thin, so as a rule of thumb, organizations should refrain from taking part in political activity if they’re unsure of the legalities.

How to Engage in Nonprofit Advocacy

As a nonprofit organization, how and to what extent you can engage in advocacy work is largely determined by your tax-exempt status with the IRS. 501(c) designations are used for tax-exempt nonprofit organizations, and the two most common organization types are 501(c)(3) and 501(c)(4). These groups are also the most affected by IRS rules and regulations surrounding nonprofit advocacy.

501(c)(3)

The 501(c)(3) designation applies to organizations that have religious, charitable, scientific, literary, or educational purposes. 501(c)(3) organizations can’t participate in partisan campaign activity, and any violations of this rule can jeopardize their status. They’re allowed to engage in lobbying efforts to influence legislation so long as it’s not a “substantial part” of the nonprofit’s activities. While there are no set limits on lobbying expenditures, it is generally understood that no more than 20 percent of the operating budget can go towards lobbying activities.

Takeaway: 501(c)(3) organizations can advocate for their organization or mission, but they can’t directly engage in political campaigning.

501(c)(4)

The 501(c)(4) designation applies to social welfare organizations and has its own rules regarding advocacy efforts. 501(c)(4) organizations can lobby for legislation and candidates, although lobbying for specific candidates is more restricted than lobbying for legislative change. The main thing to keep in mind when lobbying for candidates is that the organization’s donation can’t be directly tied to the candidate’s campaign.

Unlike 501(c)(3) organizations, 501(c)(4) organizations can participate in partisan campaign activity, as long as expenditures make up less than half of their total budget. Contributions can’t be directly given to a specific candidate, and they’re not tax-deductible. As with 501(c)(3) organizations, their main objective must be to further their social welfare mission — not lobbying or political activity.

Takeaway: 501(c)(4) organizations can directly engage in lobbying and political campaigning, but there are limitations to their financial contributions.

In uncertain times like these, nonprofit advocacy can help empower communities, push forward important policies, and remind politicians and legislators of the country’s pressing issues. For further guidance on how to approach lobbying or political activity, you can reach out to your state’s nonprofit association, or explore trusted resources like the National Council of Nonprofits and Bolder Advocacy. What’s important is that you take the first step.