Nonprofit Management - masonnonprofitfellows

Chapter 14: Advocacy and Lobbying

Stages in the Life Cycle of a Social Change Issue (Andreasen, 2006)



 Stage 1: Inattention to the problem  Stage 2: Discovery of the problem  Stage 3: Climbing the agenda  Stage 4: Outlining the choices  Stage 5: Choosing courses of action  Stage 6: Launching initial interventions  Stage 7: Reassessing and redirecting efforts  Stage 8: Achieving success, failure, or neglect

Terminology   Advocacy -- action taken to support a general cause  Lobbying -- action taken to support or oppose specific legislation  Political campaign activity -- action taken in support of or opposition to specific candidates for office

Nonprofit Ambivalence about Lobbying



 Less than two percent of nonprofit organizations engage in lobbying  Larger, national organizations  Organizations in fields that are significantly regulated

 Reasons for ambivalence     

Belief that lobbying is irrelevant to the mission Belief that lobbying is inappropriate Inadequate staff or resources Concern about alienating current or potential funders Lack of clarity about the law

Overview of Lobbying Law for Nonprofits



 501(c)(4) -- can engage in lobbying essentially without restriction  501(c)(3) -- limited in lobbying activity and prohibited from political campaign activity  Tax deductibility of gifts as public subsidies  Private foundations versus public charities

 Sections 4911 and 501 of the Internal Revenue Code  Substantial part test  501(h) expenditure test

 Other laws related to lobbying practice  Lobbying Disclosure Act  Gift rule

Political Campaign Activity



 Charitable nonprofits are prohibited from engaging in campaigns and from endorsing candidates, either implicitly or explicitly  Coordinating their activities with those of a candidate or a campaign  Contributing money or time to work for a candidate  Contributing the use of their facilities for a candidate or campaign

Citizens United v. FEC (2010)



 Applies to business corporations and nonprofits exempt under Section 501(c)(4), 501(c)(5), and 501(c)(6)  Constants  Cannot make monetary or in-kind contributions directly to candidates for federal office  Cannot coordinate their communication with candidates’ campaigns

 Key change  Can make independent expenditures from their general treasury to expressly support or oppose candidates for federal office

Best Practices for Advocacy and Lobbying



 Determine the reason for lobbying and how it advances the nonprofit’s mission  Understand the legislative process  Identify the sources of funds  Undertake research

 Develop an understanding of relevant public policy issues  Obtain data needed to make the case with legislators

 Develop an infrastructure to support the lobbying program  Inventory existing relationships and identify decision makers  Use a strategic mix of tactics

Debate About Nonprofit Advocacy



 Push for increased involvement by nonprofits in electoral politics  Virtuous cycle between advocacy and program delivery (Crutchfield and Grant, 2008)  Efforts to obtain legislative action but ignore political realities are naïve (Hessenius, 2007)

 Reasons for concern  Potential for unethical use of nonprofit organizations  Jack Abramoff and the Capital Athletic Foundation

 Unwillingness of taxpayers to subsidize partisan political activities by nonprofits

FORCES FOR GOOD   Advocate and Serve  Make Markets Work  Inspire Evangelist  Nurture Nonprofit Networks  Master the Art of Adaptation  Share Leadership