Nonprofits CAN Advocate or Lobby?
Hello, Everyone,
Welcome to October! Fall is in the air, and with the changing season comes new opportunities (and perhaps some new questions) for all of us in the nonprofit sector.
Recently, I’ve heard from several of you wondering what your organization is allowed to do when it comes to advocacy (and, yes, lobbying!). As many mission-driven leaders know, weighing in on public issues is vital to advancing our causes, but the legal boundaries around lobbying can feel confusing. The good news? Nonprofits have more room to act than most people assume! So, let’s de-mystify where those lines are.
What Nonprofits CAN Do
Engage in advocacy and lobbying that advances your mission, whether that’s through grassroots efforts, meeting policymakers, or public education.
Speak out boldly on public policy issues—not just legislation—without worrying about “lobbying” limits, as long as you don't urge action on a particular bill.
Share your opinions on executive orders, court rulings, agency rules, and existing laws.
Keep informing, inspiring, and mobilizing your community: write editorials, produce podcasts, stage peaceful protests, or give talks related to your work.
If you want to weigh in on actual legislation, the IRS lets you lobby within specific limits—especially if you make the “501(h) election” by submitting IRS Form 5768. This gives you clear budget-based guidelines (often up to 20% of annual expenses for small nonprofits) and counts only what you spend, not volunteer time or energy.
You can always respond directly to legislation that threatens your tax status or core operations (“self-defense” lobbying), and conduct nonpartisan research or share objective educational reports on legislative issues.
What Nonprofits CANNOT Do (or Must Limit)
Engage in “electioneering”—endorsing or opposing candidates for public office is always off-limits for 501(c)(3) nonprofits (the Johnson Amendment).
Let lobbying on specific legislation become a “substantial part” of your organization’s activities (unless you’re tracking under the 501(h) rules)
Skirt the expenditure caps: for most organizations, direct lobbying can’t top 20% of your budget under $500K, with stricter caps for grassroots lobbying.
Use 501(c)(3) funds to subsidize lobbying by affiliated 501(c)(4) groups. Private foundations are generally prohibited from legislative lobbying entirely.
Demystifying the 501(h) Election
The 501(h) election simplifies record-keeping and maximizes your ability to speak out: instead of vague “substantial part” limits, it gives you concrete spending allowances and excludes volunteer time, letting you focus energy where it belongs—on effecting change.
Final Thoughts
Advocacy is not just permitted; it’s essential. The law is on your side if you play by the rules, and speaking out on policy is a powerful way for nonprofits to shape a better future. October’s a great time to talk to your board or staff about how you might use your advocacy voice (and maybe file that short 501(h) form if you haven’t already!).
Let’s keep the sector vibrant, impactful, and bold.
Wishing you a purposeful October,
Jamie
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