Nonprofits Can Advocate Without Risking Tax-Exempt Status

Nonprofits play a critical role in shaping laws and public policy by engaging in issue advocacy, lobbying, and civic engagement activities like voter education and get-out-the-vote campaigns. However, a July 2023 research report from Independent Sector found that only 31 percent of nonprofits engaged in any advocacy or lobbying activities over the last five years and the percentage of nonprofits lobbying dropped significantly from 74 percent in 2020 to only 25 percent today. The report authors conclude that “fewer nonprofits today leverage their influence to drive systemic change, educate community leaders, and give voice to their missions and those they serve compared to 20 years ago.”

One reason for this “retreat from influence” may be that nonprofit leaders underestimate their ability to engage with politically salient issues or issues that intersect with elections or the legislative process. While 501(c)(3) nonprofits are subject to strict restrictions on “political intervention” and limits on the amount of lobbying they can perform, they nevertheless remain free to engage in a wide range of advocacy, education, and engagement-related activities.

Resources for nonprofits interested in evaluating or expanding their advocacy and lobbying efforts include:

• The Pro Bono Center’s resource collection on Nonprofit Advocacy including guides to understand the difference between unrestricted advocacy, lobbying, and prohibited political intervention.
• Myths about Lobbying, Political Activity, and Tax-Exempt Status - Are You Limiting Opportunities to Advance Your Nonprofit Mission? – A recent article from Venable LLP highlighting common misconceptions about the allowed scope nonprofit advocacy.
• Bolder Advocacy, an organization dedicated to helping nonprofits understand and expand their advocacy capacities via trainings, archived resources, and a free technical assistance hotline (1-866-NP-LOBBY).
• Sustainability Education 4 Nonprofits has a short video guide to the 501(h) election, a common tool for nonprofits that engage in regular lobbying efforts. .