How Nonprofits Shape Policy: The Power of Advocacy vs. Lobbying

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Every year, thousands of nonprofit organizations work to influence government decisions—from local school board meetings to Capitol Hill.

Yet many people, including those working at nonprofits, don’t fully understand the rules governing these activities or the strategic differences between advocacy and lobbying.

This distinction matters more than you might think. Get it wrong, and a nonprofit could lose its tax-exempt status or face hefty penalties. Get it right, and organizations can effectively advance their missions while staying within legal bounds.

The confusion often stems from how these terms are used in everyday conversation versus their precise legal definitions. What most people call “lobbying” might actually be perfectly permissible advocacy under federal law. Meanwhile, activities that seem harmless could cross into restricted territory.

What Nonprofit Advocacy Really Means

Nonprofit advocacy covers a broad range of activities designed to influence decisions in political, economic, or social institutions. At its core, advocacy means raising awareness and working toward systemic change that benefits the communities nonprofits serve.

Unlike direct service programs that help individuals one at a time, advocacy targets the root causes of problems. A food bank might feed hundreds of families each week while also advocating for policies that address food insecurity at its source.

The Many Faces of Advocacy

Nonprofit advocacy takes numerous forms, each designed to inform, persuade, and mobilize different audiences:

Public Education and Awareness Organizations regularly inform the public, media, and decision-makers about their causes through reports, social media campaigns, public forums, and informational materials. A homeless services organization might publish research showing how housing costs affect family stability, or share stories that highlight the human impact of housing policies.

Research and Policy Analysis Many nonprofits conduct or commission research to gather data, analyze policy options, and develop evidence-based recommendations. This research helps inform public debate and provides credible information to policymakers who need reliable data to make decisions.

Community Organizing and Mobilization This involves rallying supporters and community members for collective action. Activities include organizing petitions, holding peaceful protests or rallies, and encouraging people to contact elected officials about issues that matter to them.

Coalition Building Nonprofits often team up with other organizations—including other nonprofits, community groups, and sometimes businesses—to amplify their messages and pool resources for common goals. Working together gives smaller organizations a louder voice.

Nonpartisan Voter Engagement Encouraging civic participation represents a vital advocacy role. This includes voter registration drives, educating voters about the election process, providing unbiased information about where candidates stand on issues, and hosting candidate forums where all candidates get equal speaking time.

Litigation Some nonprofits challenge laws or practices they believe are unjust, harmful, or unconstitutional through the court system. Legal advocacy can be particularly effective when legislative routes are blocked.

These activities target diverse audiences: the general public, media outlets, specific policymakers at federal, state, and local levels, other organizations, and the nonprofit’s own supporters. The variety shows that advocacy is accessible to nonprofits regardless of their size or budget. Simple actions like public education or joining a coalition can be just as important as resource-intensive efforts like litigation.

Understanding Political Lobbying

Political lobbying refers to specific activities aimed at influencing legislative action through direct or indirect communication with legislators, their staff, or other government officials involved in creating legislation. The goal is persuading policymakers to make decisions—voting for or against a bill, amending proposed regulations—that align with the organization’s interests.

Federal vs. State Definitions

At the federal level, lobbying means “any communication made on behalf of a client to members of Congress, congressional staffers, the president, White House staff and high-level employees of nearly 200 agencies, regarding the formulation, modification, or adoption of legislation,” according to the Center for Public Integrity.

State definitions vary significantly, creating a complex regulatory landscape for organizations operating nationwide. Alabama defines lobbying broadly to include promoting, opposing, or influencing the introduction, defeat, or enactment of legislation, as well as executive approval or veto. Arkansas defines it more narrowly as “communicating directly or soliciting others to communicate with any public servant with the purpose of influencing legislative action or administrative action.”

These variations mean actions that constitute lobbying in one state might not in another, or might face different registration and reporting requirements. Organizations working across state lines must navigate this patchwork of laws, which can be particularly challenging for smaller nonprofits or those with limited legal resources. The National Conference of State Legislatures provides an overview of how different states define lobbying and lobbyists.

Two Types of Lobbying

Direct Lobbying This involves communications made directly to legislators, their staff, or other government officials who participate in creating legislation, where the communication refers to specific legislation and reflects a view on that legislation.

For example, a representative from an environmental nonprofit might meet with a state senator’s office to discuss a pending climate bill and urge the senator to support it. Effective direct lobbying often requires identifying key policymakers who can impact a bill, providing them with educational briefings and well-researched data, and sometimes helping draft legislative proposals or amendments.

Success depends on knowing not just what to communicate, but who to communicate with and how to frame issues in ways that resonate with the policymaker’s priorities and constituents.

Grassroots Lobbying This type aims to influence legislation by encouraging the general public to contact their legislators or other government officials to express particular viewpoints on specific legislation.

An example would be an organization sending an action alert to its members, urging them to email their congressional representatives to oppose proposed cuts to a social program. Grassroots lobbying includes asking the public to contact legislators, providing legislator contact information or easy-to-use tools like online petitions, or identifying officials opposed to the organization’s stance to encourage public pressure.

Key Differences: Advocacy vs. Lobbying

While nonprofit advocacy and political lobbying both aim to influence outcomes, they’re not the same thing. A crucial principle: all lobbying is advocacy, but not all advocacy is lobbying. Lobbying represents a specific subset of the broader advocacy category, distinguished primarily by its direct focus on influencing specific legislation.

This distinction is vital because many nonprofit organizations, particularly 501(c)(3) public charities, face strict legal limitations and potential penalties for lobbying activities, while broader advocacy efforts generally have no such restrictions. Misunderstanding these activities can lead to serious compliance issues, including loss of tax-exempt status or excise taxes.

A common source of confusion: the everyday definition of “lobbying” often encompasses any discussion of issues with policymakers. However, the strict legal definition for nonprofits is narrower, generally including only activities that ask policymakers to take specific positions on specific legislation, or that ask others to do the same.

Understanding these distinctions empowers nonprofits to confidently engage in a wide range of permissible advocacy activities that advance their missions, while carefully managing any activities that fall under the legal definition of lobbying.

The Rules: IRS Regulations for Nonprofits

The Internal Revenue Code sets specific rules about how much tax-exempt nonprofit organizations can engage in political and legislative activities. These rules vary significantly depending on the type of nonprofit designation, with 501(c)(3) organizations facing the most stringent limitations.

501(c)(3) Organizations: Strict Limits

Organizations exempt under section 501(c)(3)—which includes most charitable nonprofits—face strict rules regarding political activities. These restrictions are a condition of their tax-exempt status, which allows them to receive tax-deductible contributions.

The Johnson Amendment: No Campaign Activity

All 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in any political campaign on behalf of or in opposition to any candidate for elective public office. This prohibition, often called the “Johnson Amendment,” covers:

• Making financial contributions to political campaign funds
• Making public statements that favor or oppose candidates for public office
• Endorsing candidates
• Publishing or distributing materials that advocate for or against candidates

Violating this prohibition can result in denial or revocation of tax-exempt status and excise taxes. This ban applies to candidates for federal, state, and local elective offices. The Supreme Court’s Citizens United decision, which addressed campaign finance rules for corporations and unions, doesn’t alter these specific restrictions on 501(c)(3) charitable nonprofits.

Permissible Nonpartisan Activities

Despite the strict campaign intervention ban, 501(c)(3) organizations can engage in certain election-related activities if conducted in a strictly nonpartisan manner. The key factor is that activities must not show bias favoring or opposing any particular candidate or political party.

Voter Education Organizations can publish voter education guides, present public forums, or distribute candidate questionnaires, as long as these efforts are unbiased and cover a range of issues. Information must be presented fairly, all candidates should get equal opportunities to participate or respond, and materials shouldn’t implicitly or explicitly endorse anyone.

Voter Registration and Get-Out-the-Vote Drives 501(c)(3)s can conduct voter registration and get-out-the-vote drives if these activities are nonpartisan and don’t target voters based on party affiliation or candidate preference.

Candidate Appearances Inviting candidates to speak at organizational events can be permissible under limited circumstances. If a candidate is invited, it should be in a non-candidate capacity (as an expert on a subject related to the nonprofit’s mission) or as part of a forum where all legally qualified candidates get invited and equal speaking opportunities. Organizations must ensure events don’t function as campaign rallies. Many nonprofits avoid candidate appearances due to the difficulty of maintaining strict nonpartisanship and controlling the candidate’s message.

Lobbying Limits: Two Tests

While 501(c)(3) public charities can’t engage in campaign intervention, they can engage in some legislative lobbying activities, according to the IRS. However, lobbying cannot constitute a “substantial part” of their overall activities. Exceeding these limits can result in excise taxes and, in severe cases, loss of tax-exempt status. Private foundations face much stricter rules, with lobbying effectively prohibited except in very limited circumstances.

Public charities have two standards for measuring lobbying activities:

The “Insubstantial Part” Test This is the default standard for 501(c)(3) organizations that haven’t made the 501(h) election. Under this test, “no substantial part of a charity’s activities… be carrying on propaganda or otherwise attempting to influence legislation.” The term “substantial” isn’t precisely defined by the IRS, creating uncertainty for many organizations.

The IRS and courts examine various factors case-by-case, including the amount of time (paid and volunteer) and money spent on lobbying relative to the organization’s overall activities and charitable purposes. Due to this vagueness, many tax practitioners advise organizations can generally feel safe if lobbying constitutes around 3-5% or less of their total activities and expenditures, though this isn’t an official IRS threshold. The ambiguity often leads nonprofits to be overly cautious, potentially underutilizing their ability to engage in permissible lobbying.

The 501(h) “Expenditure Test” Election To address the vagueness of the “insubstantial part” test, Congress enacted Section 501(h) in 1976. This allows most 501(c)(3) public charities (excluding churches and private foundations) to elect to have their lobbying activities measured by an objective “expenditure test.” Organizations make this election by filing IRS Form 5768, available on the IRS website.

The 501(h) election offers several advantages:

Clear Financial Limits It provides specific, generous dollar limits on lobbying spending, based on a sliding scale of the organization’s “exempt purpose expenditures”:

• 20% of the first $500,000 of exempt purpose expenditures
• 15% of the next $500,000
• 10% of the next $500,000
• 5% of any remaining expenditures
• Total lobbying spending is capped at $1 million per year

Separate Limit for Grassroots Lobbying Within the overall lobbying limit, there’s a separate, lower cap on grassroots lobbying expenditures. This is generally 25% of the organization’s overall lobbying limit.

Clearer Definitions The 501(h) election comes with clearer definitions of what constitutes direct and grassroots lobbying, and specific exceptions for activities that don’t count as lobbying (like nonpartisan analysis, study, or research; communications with bona fide members about legislation unless they directly encourage lobbying).

Penalties If an organization exceeds these expenditure limits, it faces an excise tax of 25% on the excess spending. If an organization “normally” makes lobbying expenditures that are more than 150% of its lobbying limit over a four-year period, it can lose its tax-exempt status.

The 501(h) election provides a much clearer and often more generous framework for nonprofits that want to engage in lobbying, allowing them to do so with greater confidence and less risk of inadvertently violating vague standards. Resources like Alliance for Justice’s “Public Charities Can Lobby” provide detailed guidance on these tests.

501(c)(4) Organizations: More Political Freedom

Section 501(c)(4) provides tax exemption for “social welfare organizations”—civic leagues or organizations operated exclusively for promoting social welfare. These organizations have significantly more latitude to engage in lobbying and some political campaign activities compared to 501(c)(3)s. However, contributions to 501(c)(4) organizations generally aren’t tax-deductible as charitable contributions.

Lobbying Activities 501(c)(4) organizations can engage in unlimited lobbying, as long as the lobbying relates to the organization’s social welfare purpose. Lobbying can even be the primary activity without jeopardizing tax-exempt status. This provides a clear avenue for groups whose core mission involves extensive legislative advocacy. However, an organization that has lost its 501(c)(3) status due to substantial lobbying attempts cannot subsequently qualify as a 501(c)(4).

Political Campaign Intervention Unlike 501(c)(3)s, 501(c)(4) social welfare organizations may engage in some political campaign intervention (activities that support or oppose candidates for public office), provided such intervention isn’t their primary activity. Determining an organization’s “primary activity” can be complex, as there’s no definitive bright-line test from the IRS. Some practitioners suggest political campaign expenditures shouldn’t exceed 30-40% of total expenditures to be safe, but the IRS may also consider the nature and extent of all activities, including volunteer efforts. If a 501(c)(4) makes expenditures for political activities, those expenditures may be subject to tax under IRC section 527(f).

The existence of 501(c)(4) status allows formation of organizations that prioritize policy change through means impermissible for a 501(c)(3). It’s common for a 501(c)(3) to have an affiliated 501(c)(4) organization to handle more extensive lobbying or permissible political work.

Transparency Requirements: The Lobbying Disclosure Act

Beyond IRS regulations governing lobbying by tax-exempt organizations, a separate federal law—the Lobbying Disclosure Act (LDA) of 1995—focuses on transparency of lobbying efforts directed at federal officials. The LDA requires individuals and entities that engage in lobbying above certain thresholds to register with Congress and file regular public reports detailing their efforts.

This law applies broadly to any entity that lobbies, including 501(c)(3) and 501(c)(4) nonprofits, for-profit corporations, labor unions, and other groups. The primary purpose is shedding light on who is attempting to influence federal policy and on what issues.

Who Must Register?

Registration under the LDA is triggered when certain financial and activity thresholds are met:

• An organization that employs in-house lobbyists must register if its total expenses for federal lobbying activities exceed a specific monetary threshold in a quarterly period. Current thresholds should be verified with the U.S. House of Representatives Lobbying Disclosure website.
• Lobbying firms (organizations that lobby on behalf of external clients) must register for each client if their income from that client for lobbying activities exceeds a certain threshold in a quarterly period.
• A “lobbyist” under the LDA is defined as an individual who is employed or retained by a client and makes more than one lobbying contact, spending at least 20 percent of their time on lobbying activities for that client during a three-month period.

The LDA’s thresholds are designed for organizations with sustained lobbying activities and expenses. Occasional contacts with federal officials or minimal spending on lobbying may not trigger registration requirements. Volunteers and independent contractors (like an outside lobbying firm hired by a nonprofit) aren’t counted as an organization’s own “lobbyists” for determining if the nonprofit itself needs to register, though the outside lobbying firm would have its own registration duties.

What Must Be Reported?

Registered organizations and firms must file:

Quarterly Reports (Form LD-2) These reports disclose:

• A good faith estimate of the total amount spent on lobbying activities during the quarter
• The specific issues lobbied on, including bill numbers and specific executive branch actions
• The names of the lobbyists who were active on those issues
• The Houses of Congress and federal agencies contacted

Semi-Annual Reports (Form LD-203) These reports disclose certain political contributions made by the registrant or its lobbyists (contributions to federal candidates, leadership PACs, political party committees) and certify compliance with House and Senate gift and travel rules.

These reports are publicly available, providing transparency into efforts to influence the federal government.

Penalties for Non-Compliance

Knowingly failing to comply with the LDA’s registration or reporting requirements can result in significant civil fines (up to $50,000 for each violation, according to some sources). Egregious cases may also be referred to the U.S. Attorney for the District of Columbia for potential criminal prosecution.

The LDA and IRS regulations operate as separate but related systems. A nonprofit might be well within its IRS lobbying limits but still need to register under the LDA if its federal lobbying activities meet the LDA’s financial and contact thresholds. Conversely, a 501(c)(4) can lobby extensively under IRS rules but must still comply with LDA disclosure if its federal efforts are significant.

Why Nonprofits Choose to Engage

Nonprofits engage in advocacy and lobbying for multiple strategic reasons, all fundamentally tied to advancing their missions, ensuring their sustainability, and giving voice to the communities and causes they represent. These activities reflect growing understanding within the sector that direct service alone is often insufficient to address the root causes of complex social problems; systemic change frequently requires engagement with public policy.

Advancing the Mission

Addressing Systemic Barriers Many nonprofits work with populations facing systemic barriers to well-being, opportunity, or justice. Advocacy and lobbying provide tools to tackle root causes by changing laws, policies, and resource allocation. An organization providing food aid might also advocate for policies that address food insecurity at a structural level.

Preventing Harm and Expanding Access Defensive advocacy aims to prevent enactment of policies or budget cuts that would harm a nonprofit’s constituents or its ability to serve them. Proactive advocacy seeks to lower barriers and broaden access to essential services, such as advocating for increased staffing at a government agency to improve service delivery.

Illuminating Community Needs Nonprofits are often uniquely positioned to understand pressing needs and challenges within their communities. Through advocacy, they can bring these issues to the attention of policymakers and the public, ensuring overlooked problems are recognized and addressed.

Ensuring Organizational Survival

Securing and Shaping Funding Many nonprofits rely on government funding or operate in areas heavily influenced by government regulation. Advocacy and lobbying can be crucial for securing adequate funding, ensuring fair reimbursement rates for services, and shaping funding priorities to align with mission-critical needs. The COVID-19 pandemic illustrated this clearly, as federal relief programs, often shaped by nonprofit advocacy, were vital in helping many organizations continue operating.

Protecting Operational Integrity Advocacy can protect nonprofits from burdensome regulations, new fees, or threats to their tax-exempt status.

Enhancing Visibility and Support Effective advocacy can attract positive media attention, raise public awareness of the nonprofit’s mission and impact, and mobilize support from board members, volunteers, and donors.

Strengthening Democracy

Representing Constituent Interests Nonprofits often serve as the voice for individuals and communities, particularly marginalized or underrepresented groups, ensuring their perspectives are considered in policy debates.

Holding Government Accountable Advocacy efforts contribute to government accountability by monitoring policy implementation and pressing for transparency and responsiveness.

Fostering Civic Engagement Nonprofits play a key role in American democracy by encouraging citizen involvement in policy decisions and providing platforms for collective action. They’re often described as “citizenship crucibles and leadership laboratories,” where individuals learn skills vital for democratic participation. Initiatives like Independent Sector’s “A Seat at the Table” aim to formalize the nonprofit sector’s role in shaping federal policies.

The increasing complexity of societal challenges and rapid shifts in the political and regulatory landscape make advocacy and lobbying not just beneficial, but often essential for nonprofits to protect their missions and effectively serve their communities. This represents a strategic shift where policy engagement is viewed as a core function rather than an optional activity.

Real-World Impact: How Nonprofits Shape Policy

The engagement of nonprofit organizations in advocacy and lobbying has demonstrable impact on both the substance of public policy and the vibrancy of civic participation in the United States. By bringing expertise, community perspectives, and a focus on the public good to policy debates, nonprofits contribute to more informed, equitable, and effective governance.

Shaping Public Policy

Nonprofit advocacy and lobbying influence policy in several key ways:

Informing Decision-Making Nonprofits often possess specialized knowledge and on-the-ground experience related to their missions. By sharing research, data, and real-world insights, they provide policymakers with valuable information that can lead to more well-rounded and evidence-based decisions. The Alzheimer’s Association develops resources like its annual “Alzheimer’s Disease Facts and Figures” report to educate decision-makers on the disease’s impact.

Representing Diverse Interests The nonprofit sector encompasses organizations focused on a vast array of issues, from health and human services to environmental protection, education, and civil rights. This diversity ensures that a wide spectrum of public interests and community needs are brought to policymakers’ attention, fostering more inclusive outcomes.

Advancing Social Causes and Driving Reform Many significant social reforms and advancements in areas like human rights, public health, environmental protection, and consumer safety have been spurred or significantly shaped by nonprofit advocacy. Community-based participatory research partnerships involving nonprofits have led to policy changes such as reducing allowable cancer risk from toxic emissions in South Los Angeles and reinstating Medicaid for prisoners immediately upon release in New York.

Securing Resources for Communities Nonprofit lobbying is often critical in securing government funding for essential programs and services, as seen in efforts by the Michigan Nonprofit Association and the Kentucky Nonprofit Network to secure State and Local Fiscal Recovery Funds for their states’ nonprofits, or the National Council of Nonprofits’ work on federal tax legislation to benefit the sector.

Catalyzing Culture Change Beyond direct legislative impact, nonprofit advocacy can drive broader shifts in public attitudes and societal norms. Issues like public awareness around smoking, drunk driving, and sexual harassment saw significant cultural change, often fueled by nonprofit campaigns, which then paved the way for corresponding legal reforms.

Enhancing Civic Participation

Nonprofit advocacy efforts also play a crucial role in strengthening democratic processes and civic engagement:

Providing a Voice for Citizens Nonprofits act as intermediaries, amplifying the voices of ordinary citizens, especially those from marginalized communities who might otherwise lack direct access to power.

Promoting Voter Engagement Through nonpartisan voter registration drives, voter education initiatives, and get-out-the-vote campaigns, nonprofits help increase citizen participation in elections. Research indicates that when charitable nonprofits encourage voting in a nonpartisan way, turnout is significantly higher.

Building Community and Collaboration Advocacy campaigns often bring diverse groups of people and organizations together, fostering collaboration and building social capital within communities.

Educating the Public on Policy Issues Nonprofits help citizens understand complex policy issues and how government actions affect their lives, empowering them to become more informed and active participants in civic discourse.

The unique position of nonprofits, often bridging the gap between community needs and governmental processes, allows them to serve as a vital feedback loop, helping ensure policies are more responsive and accountable. While the broader lobbying landscape includes powerful corporate and special interests, the robust and ethical participation of nonprofits is crucial to provide a counterbalance and champion the public good.

Advocacy in Action: Real Examples

Impactful Advocacy Campaigns

Many effective nonprofit campaigns achieve policy or social change through methods that don’t primarily involve direct lobbying as defined by the IRS. These often focus on educating the public, mobilizing communities, conducting research, and shifting public discourse.

ALS Association’s “Ice Bucket Challenge” This viral social media campaign in 2014 dramatically increased public awareness of Amyotrophic Lateral Sclerosis (ALS) and raised over $115 million in eight weeks. While largely a fundraising and awareness effort, the resulting surge in resources significantly boosted ALS research funding and visibility, influencing research priorities—a form of policy impact.

It Gets Better Project Launched to support and inspire hope for LGBTQ+ youth facing harassment and bullying, this project utilized a multi-channel social media strategy, sharing personal stories and messages of encouragement. This public education and cultural advocacy campaign has had a profound impact on public discourse and support for LGBTQ+ youth.

Greenpeace’s #SaveOurPlanet Campaign This ongoing campaign uses compelling storytelling through social media videos and interactive tools to highlight climate crises. It combines this with grassroots actions like petitions and climate strikes, alongside direct policy pressure on governments and corporations to divest from fossil fuels and support renewable energy. Tangible outcomes include contributions to the advancement of the Global Ocean Treaty and influencing the UK government to advocate for a moratorium on deep-sea mining.

Advocates for Inclusive Education (Pennsylvania) In response to extremist policies being pushed at the local school board level, a grassroots group of parents and community members formed Advocates for Inclusive Education. Through community organizing, creating a resource-rich website, consistently sharing information about the impact of board policies, and issuing calls to action, they successfully mobilized voters to flip the school board in an election, reversing harmful policies. This demonstrates the power of local community organizing leading to direct changes in local governance and policy.

PolicyLink and UC Berkeley School of Public Health CBPR Initiatives These academic and nonprofit partnerships have utilized Community-Based Participatory Research (CBPR) to drive policy changes. Examples include research leading to a 75% reduction in allowable cancer risk from toxic air emissions in a South Los Angeles neighborhood and the reinstatement of Medicaid benefits for individuals immediately upon release from prison in New York State, according to a PolicyLink report. This showcases how rigorous research and policy analysis, conducted in partnership with communities, can directly inform and achieve policy reform.

Parity (Baltimore, MD) This nonprofit works to create affordable housing and prevent displacement in West Baltimore by acquiring and redeveloping vacant properties. Beyond its direct development work, Parity actively engages in local economic and housing policy advocacy to address systemic inequities.

These examples illustrate that successful advocacy often involves a multi-faceted strategy, combining public education, grassroots mobilization, research, and strategic communications. Many of these impactful campaigns achieve significant policy or societal shifts without necessarily engaging in activities that would be classified as “lobbying” under strict IRS definitions, underscoring the broad power and potential of non-lobbying advocacy.

Direct and Grassroots Lobbying Examples

Nonprofits also engage in direct and grassroots lobbying when specific legislative outcomes are critical to their missions.

Alzheimer’s Association and its Advocacy Arm The Alzheimer’s Association is a prominent example of sustained, multi-level lobbying. They consistently advocate for increased federal funding for Alzheimer’s and dementia research at the National Institutes of Health (NIH), successfully securing a $100 million increase for FY24. They also work on legislation like the BOLD (Building Our Largest Dementia) Infrastructure for Alzheimer’s Act reauthorization, the AADAPT (Accelerating Access to Dementia & Alzheimer’s Provider Training) Act, and the National Alzheimer’s Project Act (NAPA) reauthorization. At the state level, they advocate for funding for dementia programs and legislation to ensure access to biomarker testing.

Their methods include training and mobilizing a nationwide network of advocates who participate in events like an annual “Hill Day,” meeting directly with hundreds of congressional offices to share personal stories and urge support for specific legislation. This combines sophisticated direct lobbying with powerful grassroots engagement.

Feeding America This national network of food banks actively lobbies on federal nutrition programs. Their priorities include protecting and strengthening funding for the Supplemental Nutrition Assistance Program (SNAP), The Emergency Food Assistance Program (TEFAP), and the Commodity Supplemental Food Program (CSFP) within the Farm Bill. They also advocate for the Child Nutrition Reauthorization Act to support programs for children and for appropriations and tax policies that support anti-hunger efforts and incentivize charitable giving, according to their advocacy page.

Feeding America staff work daily on Capitol Hill engaging with lawmakers and their staff (direct lobbying) and also mobilize their network and the public to contact elected officials on these critical issues (grassroots lobbying).

National Council of Nonprofits This organization advocates on behalf of the broader nonprofit sector. NCN actively lobbied on federal tax legislation, successfully advocating for the removal of provisions harmful to nonprofits and pushing for the inclusion of measures like the universal charitable deduction (Charitable Act). Their tactics included issuing national sign-on letters co-signed by other major nonprofit umbrella groups and mobilizing nonprofits across the country to contact their Senators directly regarding specific sections of tax bills.

These examples demonstrate that effective lobbying often integrates direct engagement by organizational leaders and policy experts with the mobilized voices of grassroots supporters. The decision of what specific legislation to lobby for and the intensity of that effort involves careful strategic calculations by nonprofits, considering their resources, the potential for success, and the direct alignment of the policy with their core mission and the needs of their constituents.

Best Practices for Ethical Engagement

For nonprofits engaging in advocacy and lobbying, adhering to best practices is crucial not only for legal compliance but also for maintaining public trust and maximizing effectiveness. These practices span legal understanding, ethical conduct, transparency, and strategic execution.

Legal Compliance and Governance

Know the Rules Clearly understand the legal differences between general issue advocacy (largely unrestricted for 501(c)(3)s), lobbying (which has limits for 501(c)(3)s), and political campaign intervention (strictly prohibited for 501(c)(3)s). Organizations like Alliance for Justice’s Bolder Advocacy program offer extensive resources, including guides like “Being A Player: A Guide to the IRS Lobbying Regulations for Advocacy Charities” and “Public Charities Can Lobby,” which explain IRS rules, the “insubstantial part” test, and the 501(h) expenditure test election in detail.

Track Expenditures Carefully If engaging in lobbying, carefully track all related expenditures, including staff time (both direct contact and preparation), travel, materials, and payments to outside lobbyists. This is essential for IRS reporting (Form 990, Schedule C) and for compliance with the 501(h) election limits if chosen.

Comply with Disclosure Laws Be aware of and adhere to federal Lobbying Disclosure Act registration and reporting requirements if federal lobbying activities meet the specified thresholds. Additionally, many states and some localities have their own lobbying laws with distinct registration and reporting rules that must be followed. These can be found on Secretary of State or local government ethics websites.

Internal Policies Develop and implement clear internal policies regarding advocacy, lobbying, and political activity to guide staff and board members.

Ethical Conduct and Transparency

Adopt a Code of Ethics Formally adopt and regularly review a code of ethics or statement of values that guides the organization’s decision-making and the conduct of its board, staff, and volunteers. The National Council of Nonprofits provides resources on developing such codes. Key values often include honesty, integrity, transparency, accountability, respect, and equity.

Maintain Transparency Be open and honest in all communications with policymakers, the public, and stakeholders. This includes providing accurate, comprehensive, and, where appropriate, unbiased information.

Disclose Information Clearly disclose funding sources for advocacy or lobbying efforts when required or when it enhances credibility. Publish annual reports and make key financial documents (like the IRS Form 990) readily accessible to the public.

Avoid Conflicts of Interest Don’t misrepresent facts, research findings, or the organization’s position on an issue. Identify, disclose, and manage any potential or actual conflicts of interest among board members, staff, or lobbyists.

Mission Alignment Ensure all advocacy and lobbying activities are clearly aligned with the organization’s mission, values, and the interests of the communities it serves.

Effective Strategies

Clear Goals and Research Define clear, measurable goals for any advocacy or lobbying campaign. Base positions and arguments on thorough research and credible data.

Understand Your Audience Tailor messages and strategies to the specific audience, whether it’s the general public, specific policymakers, or the media.

Compelling Communication Develop clear, concise, and compelling messages. Utilize storytelling to illustrate the human impact of policies and connect emotionally with audiences. For digital advocacy, short-form video content and interactive engagement can be highly effective.

Mobilize Supporters and Build Coalitions Engage and mobilize supporters through grassroots efforts. Collaborate with other organizations, forming coalitions to amplify messages, share resources, and demonstrate broader support.

Build Relationships Cultivate respectful, professional relationships with policymakers and their staff. Be a trusted source of information.

Be Flexible and Persistent Advocacy and policy change can be long-term processes. Be prepared to adapt strategies as circumstances change and maintain persistence.

Evaluate Efforts Regularly assess the effectiveness of advocacy strategies and make adjustments as needed.

Ethical and transparent practices are foundational to building and maintaining public trust and credibility—the most valuable assets for any nonprofit. In an increasingly complex policy environment where systemic change is often the goal, nonprofits must not only understand the rules of engagement but also become more sophisticated in their advocacy approaches.

Tracking the Data: Public Information Resources

For citizens, journalists, and organizations wishing to understand the landscape of advocacy and lobbying, several key resources provide valuable data and insights. These platforms promote transparency and allow for more informed public discourse on how policy is shaped in the United States.

USAFacts.org: Government Data Made Accessible

USAFacts.org is a non-partisan, not-for-profit civic initiative dedicated to making U.S. government data accessible and understandable to the American public. Founded on the principle that citizens need reliable, unbiased facts to form their own opinions and participate effectively in democracy, USAFacts compiles and presents data from various government sources without a political agenda.

USAFacts provides comprehensive data across a wide range of topics, including:

Government Finances Detailed information on federal, state, and local government revenue, spending, debt, and deficits. For example, in Fiscal Year 2021, combined government revenue in the U.S. was $8.6 trillion, with individual income taxes being the largest source, according to the USAFacts Annual Report.

Population and Demographics Data on population trends, immigration, household characteristics, and more. For instance, they report on the number of immigrants in the United States (approximately 47.8 million in 2023), with data typically found at usafacts.org/population.

Economy, Health, Education, Environment, Crime Metrics and trends in these and other critical areas of public interest.

While USAFacts doesn’t directly track lobbying activities or specific advocacy campaigns, its extensive repository of government data serves as a crucial foundation for informed advocacy. Nonprofits and citizen advocates can use this data to understand the factual basis of societal problems, develop evidence-based policy proposals, track government performance and spending in areas relevant to their missions, and educate policymakers and the public with objective information.

OpenSecrets.org: Following the Money

OpenSecrets.org, a project of the nonpartisan research group the Center for Responsive Politics, is a leading resource for tracking money in U.S. politics and its influence on elections and public policy. It provides extensive, searchable databases on federal campaign contributions, lobbying expenditures, lobbyists, clients (including nonprofit organizations), and the issues they lobby on.

OpenSecrets.org offers information directly relevant to understanding lobbying, including by nonprofits:

Lobbying Expenditures Data on total lobbying spending by year, specific organizations, sectors (like Health, Finance), and industries. This includes overall trends in federal lobbying spending, which reached over $1.2 billion in the first quarter of 2025 alone, according to data usually found at opensecrets.org/federal-lobbying/trends-in-spending.

Lobbyist and Client Profiles Detailed profiles of lobbying firms and the organizations that hire them, as well as organizations that conduct in-house lobbying. This includes information on how much specific nonprofits spend on lobbying. For example:

• In 2023, non-profit institutions as a sector reported spending approximately $78.7 million on federal lobbying
• Notable nonprofit spenders in 2023 included the Open Society Foundations ($11.52 million), the Alzheimer’s Association ($3.94 million), and Feeding America ($1.1 million)
• Historical data is also available; for instance, in 2019, the Open Society Foundations reported $48.8 million in lobbying, and the Alzheimer’s Association reported $2.59 million

Specific nonprofit lobbying data can be explored at opensecrets.org/federal-lobbying/industries/summary.

Top Issues Lobbied Information on which policy issues attract the most lobbying attention. Consistently, issues like Federal Budget & Appropriations, Health Issues, and Taxes are among the most heavily lobbied, according to opensecrets.org/federal-lobbying/top-issues.

Revolving Door Data Tracking of individuals who move between government positions and lobbying roles.

OpenSecrets.org provides critical transparency into the efforts of nonprofits (and all other entities) to influence federal policy through lobbying. This allows the public, journalists, and researchers to identify which nonprofit organizations are actively lobbying at the federal level, see how much they’re spending compared to other interests, and understand the specific policy issues they’re trying to influence.

The data often reveals that while many nonprofits engage in lobbying, their collective financial investment is typically smaller than that of major corporate sectors. Top individual corporate lobbyists and trade associations often outspend most individual nonprofit organizations by a significant margin. This context is important for understanding the challenges nonprofits may face in ensuring their voices are heard amidst a crowded and well-funded lobbying landscape.

The detailed information provided by OpenSecrets.org serves as an important accountability mechanism, enabling scrutiny of influence activities across the board and fostering a more informed understanding of the forces shaping legislation.

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