The nonprofit sector can play a crucial role in shaping public policy through advocacy and lobbying efforts. A recent study, supported by Independent Sector and building on research released last year, delves into the complex relationships between revenue sources and nonprofit engagement in policy processes, shedding light on key findings that can inform nonprofit organizations’ funding and advocacy strategies.
Nonprofits rely on diverse funding streams, and this study reveals how various sources of funding can either facilitate or hinder their engagement in policy advocacy and lobbying. For example, the study finds that nonprofits that receive government funding or foundation grants are more likely to engage in general issue advocacy. Conversely, those relying more on individual donations and earned income tend to have less involvement in lobbying activities, indicating a negative association between those revenue sources and lobbying.
This study emphasizes the distinction between policy advocacy and lobbying, noting that while both aim to influence public policy, they differ in methods and legal restrictions. For instance, nonprofits engaged in lobbying must navigate an ambiguous regulation that states that lobbying cannot constitute a “substantial part” of their activities. Or nonprofits can opt into a clear set of expenditure guidelines known as the H-election. Understanding this distinction between lobbying, which is more tightly regulated, and more general advocacy activity is crucial for nonprofits crafting effective advocacy tactics and fundraising plans.
To help understand these nuances, the research disaggregates policy engagement into 19 distinct forms of advocacy and lobbying activities, underscoring the unique resource interactions for each. This disaggregation is essential for understanding how different funding sources impact specific policy engagement activities, such as interacting with government officials, organizing constituents, or filing lawsuits.
This study challenges the assumption that nonprofits with government support may avoid advocacy or lobbying activities. On the contrary, government funding is associated with increased general advocacy, indicating strategic engagement to secure resources, while maintaining relationships with funders. The study also highlights the subsector-specific nuances in the relationship between funding and advocacy efforts. For example, government funding is a significant factor associated with advocacy in human service nonprofits, but not in other subsectors.
Finally, this study also emphasizes the need for nonprofits to invest in capacity-building and training initiatives, particularly in legal acumen, to navigate complex policy landscapes effectively. Collaboration among organizations and policymakers can also amplify advocacy efforts and foster a more informed approach to policy engagement.
Advocacy and lobbying are essential tools for nonprofits, each requiring a nuanced approach. While advocacy focuses on raising awareness of and mobilizing support for policy, sector, and community issues, lobbying involves direct engagement with policymakers. Understanding these distinctions is crucial for crafting targeted and legally compliant advocacy strategies. Below, we offer some concrete steps for practitioners based on our findings.
Navigating the Advocacy Landscape
- Diversify funding strategies: While government funding can be beneficial, particularly for building relationships in government, diversifying your funding streams will help maintain financial stability and flexibility in pursuing advocacy goals.
- Tailor advocacy approaches: Identify advocacy tactics aligned with your mission and funders’ interests. Customize your approach, whether it’s building relationships with policymakers or mobilizing grassroots support.
- Empower yourself with legal knowledge: Invest in understanding the legal aspects of advocacy and lobbying. Join associations and coalitions to learn the nuances of the law and attend workshops or seek legal guidance to ensure compliance and effectiveness in your advocacy initiatives.
- Build organizational capacity: Prioritize training and skill development for your team. Enhancing capabilities in policy analysis, communication, and relationship-building empowers effective engagement in policy processes.
By strategically leveraging funding sources and adopting tailored advocacy approaches, nonprofit practitioners can drive meaningful change in public policy. Effective advocacy is not just about securing funds, but also using those funds strategically to advance the mission and create lasting impact.
