Lobbying Is Not a Four-Letter Word
It conjures up hands-dirtying compromise and backroom deals, but 501(c)(3) organizations can’t deliver the help that’s needed without influencing policy change
In the stream of advice for nonprofits on how to deal with the escalating, intersecting crises we face, one word has largely been missing: lobbying.
It’s a four-letter word for many 501(c)(3) organizations, with connotations of insider trading, hands-dirtying compromise, and “hired guns” in suits disappearing into back rooms to trade favors and cut deals. People who work in the nonprofit sector typically are not about secret meetings and power-brokering. They’re about networking, community building, openness, and breaking down barriers for humankind.
The trouble is, we can’t deliver the help that is needed — both in this moment and for future generations — without influencing policy change. If your nonprofit is trying to exist with and acknowledge the global pandemic, the burning need for racial justice, the climate crisis, and collapsed economies, you probably feel overwhelmed. Yet, upon reflection, these problems are remarkably similar. Each requires major society-wide changes attitudes and behaviors, dedicated resources to finance innovative solutions, and long-term policy changes that enable widespread adoption.
Nonprofits work every day at a community level to lift people up; our sector sees systemic failure in action, and our voices are essential to counterbalance insider special interests that have money and power. Now more than ever, it’s time for nonprofits to lobby for the people and missions that we serve — and for funders to support this critical work. If we don’t raise our collective voice, policies will still be passed, but they are unlikely to be based on informed experience and scientific research.
Lobbying is leverage for good
Given how under-resourced most nonprofits are, why should we take on the “L word” (aka lobbying)? I think that’s the wrong question. The real question is, “Is it in service of our collective missions to cede conversations about public policy to the most self-interested, wealthiest, most status quo–invested actors?” The answer is a resounding “NO.” In fact, I assert that we have a moral imperative to help ensure that the governmental sector is working alongside us to meet our collective human needs. Policy makers at all levels of government need high-quality information about their constituents that they aren’t getting in today’s deal-making rooms. Not only is it incumbent upon us to bring in a less elite-biased and more well-informed perspective, but advocating for policy change is also key to our ability to produce better outcomes.
The rising generation of nonprofit founders and leaders gets that. The projects we host at Multiplier, the nonprofit accelerator that I lead, realize that a unified, strong, science-based voice on climate action is crucial leading up to the fall elections and afterward. They see a need for significant policy action in favor of racial and economic justice, job retraining, community development, and green economy incentives to avoid the unprecedented poverty that could result from the pandemic. They want to be at the table.
Even so, our program leaders are shy about lobbying. Like their established counterparts, they worry about jeopardizing their funding and lack a clear understanding of what they can and can’t do.
There are good reasons for this reluctance. Foundations haven’t always wanted to fund policy change advocacy, in part because of strict and sometimes confusing federal laws, but also because they want tangible outcomes for their investment. And while foundations recognize that nonprofits are permitted to do a certain level of lobbying, most grants come with scary legal language that makes it sound like recipients can’t lobby. This may be an attempt at risk mitigation by legal counsel, but all too often it shuts down legitimate advocacy activity, effectively closing one of the most valuable channels nonprofits have to help them achieve the outcomes that foundations are seeking.
There are signs, though, that a growing number of foundations recognize that lobbying is an important element in nonprofit impact. A recent report from the Center for Effective Philanthropy found that most foundation leaders see influencing public policy as an important way to achieve their goals, and are supportive of grantees’ policy efforts. And many of the foundations we’re working with see policy change as an essential third leg of the stool supporting mission advances, along with fund development and program development. The barriers are falling.
Major donors are well placed to help clear the path. Because government funds normally can’t be used for lobbying and foundation funds are somewhat restricted, donors who provide unrestricted funds can play a pivotal role in supporting nonprofit lobbying. These donors often sit on the governing boards of the nonprofits they support, so they can also help instill policy advocacy as a critical part of the organization’s DNA.
Sitting at the policy table instead of crouching underneath it
Because many nonprofits shy away from policy advocacy, policy makers are often uninformed about how they can help us advance our missions. “Charities” (an outdated term that holds our sector back) may be perceived as poorly resourced and needy instead of as partners in progress. Every effort we make to chip away at that image puts us one step closer to having a seat at the policy table, where we can influence policy in meaningful ways.
In particular, direct service providers have the power to change hearts and minds by empowering and involving those who benefit from their services. Most legislators are genuinely receptive to meeting with and hearing the stories of their constituents. And they always appreciate a photo op.
Yes, there are rules that nonprofits must follow when lobbying, but there’s no reason to be intimidated. Most of the lobbying that 501(c)(3) organizations want to do likely falls well within legal boundaries and IRS constraints, and there are great resources available for navigating this territory, like these from Bolder Advocacy, a program of Alliance for Justice.
It’s especially easy to stay within the limits of what a 501(c)(3) can spend on lobbying if your nonprofit files for the free 501(h) election. This lets nonprofits comply with the law using an objective expenditure test, based on the size of the organization, rather the vague “substantial part” test. With either test, most nonprofits can do as much mission-based lobbying — at the grassroots level and directly with legislators — as they can manage.
This has been a challenging year to say the least. Nonprofits have had to make difficult decisions to close offices, campuses, and centers of service. We’ve sheltered in place. And we are facing economic repercussions that will likely continue in the coming months, and perhaps years. Yet those we serve are still counting on us to deliver on our missions and in turn, we must chart a path forward. Whether through educational advocacy, grassroots lobbying, or direct outreach to legislators, let’s get up, put ourselves (safely) at the policy table, and raise our voices — to support our missions, our sector, and our visions of a better tomorrow.
