Ready to Change the World? 5 Foundational Questions, Answered.
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Let’s face it… our world is in crisis. We are surrounded by systems that profit from inequality, ignore injustice, and prioritize comfort over courage. And too often, the nonprofit sector is expected to quietly pick up the pieces and put a Band-Aid on systemic problems with limited resources. But we are not here to soften the blow of a broken world. We are here to change it.
Still, many nonprofits shy away from advocacy activities like lobbying, organizing, and educating out of fear they’ll get it all wrong and risk their tax-exempt status. But in reality, these tools are not only legal—they’re vital for driving systemic change and advancing your mission. Whether you’re advocating for policy reform or funding, here’s a quick guide to five of the most common questions nonprofits ask about advocacy, including lobbying, plus examples of how your peers are putting them into action.
1. What’s the difference between advocacy and lobbying?
Answer: Advocacy is an umbrella term that includes educating the public, raising awareness, and influencing policymakers (amongst many other activities). Lobbying, as defined by the Internal Revenue Code, is a specific type of advocacy that involves trying to influence legislation by directly communicating with lawmakers or encouraging the public to do so.
Example in Action: A reproductive rights focused nonprofit might launch an awareness campaign on abortion access (advocacy) and meet with legislators to support a bill to safeguard abortion rights nationwide (lobbying).
Resource: Advocacy vs Lobbying: Language Guide
2. Is lobbying legal for 501(c)(3) Public Charities?
Answer: Yes! 501(c)(3) public charities can lobby—as long as they stay within allowable limits, carefully track their lobbying activities, and accurately report them to the IRS each year. By default, public charities are allowed to lobby so long as lobbying remains an “insubstantial part” of their overall work, and they use unrestricted funding to do so. Under the “insubstantial part test, organizations can dedicate approximately 3-5% of their activities to supporting or opposing legislation.That said, many organizations choose to opt-in to another method of measuring their lobbying limits. By filing a simple IRS form – Form 5768 – they can take advantage of narrow definitions of lobbying and dollar-based lobbying limits. The “501(h) test” also allows many organizations to spend up to 20% on lobbying each year.
Example in Action:An environmental justice organization lobbies Congress for conservation funding and climate legislation.
Resource: Being a Player: A Guide to the IRS Regulations for Advocacy Charities
3. What advocacy activities can nonprofits do besides lobbying?
Answer: There are many impactful advocacy strategies that fall outside the legal definition of lobbying—and they all offer excellent ways to advance a nonprofit’s mission. These include:
- Publishing research or reports
- Hosting community forums or panel discussions
- Coalition building and partnership development
- Media advocacy, such as op-eds, blog posts, or press releases
Example in Action: A mental health nonprofit creates a public awareness campaign about the effects of youth anxiety and depression in schools. They host a virtual town hall with educators and parents, publish a report with data and stories, and promote it through local media. None of these activities are lobbying—but all are powerful advocacy tools.
Resource: What is Advocacy? 2.0
4. Why does advocacy matter for nonprofits?
Answer: Advocacy helps nonprofits move beyond treating symptoms to addressing root causes. While direct services meet immediate needs, advocacy works to change the systems, policies, and funding structures that create and/or perpetuate those needs. It’s a way to amplify your impact, elevate the voices of the communities you serve, and ensure long-term, sustainable change.
In many cases, staying silent on policy issues means others will shape the rules without your input—or without considering the needs of your community.
Example in Action: A nonprofit that supports people affected by wrongful convictions not only provides reentry services and support but also advocates for policy reform—like improving access to post-conviction DNA testing, ending qualified immunity, and ensuring fair compensation for the wrongfully incarcerated. Through advocacy, they work to prevent future injustices and ensure no one else is failed or forgotten within the criminal system.
Why? For stories like this.
5. What’s the most effective way for nonprofits to influence policy?
Answer: Use a mix of approaches: combine personal stories with data, leverage your networks, build a broad coalition, and stay consistent in your messaging. Building relationships with policymakers and showing how your nonprofit’s work supports community needs helps build credibility and trust.
Example in Action: Organizations serving people experiencing homelessness regularly use client stories, research reports, and policy briefs in meetings with members of Congress to push for housing-first solutions.
Resource: The Connection
Nonprofits are not here to mitigate the impact of injustice — we’re here to end it. That means being louder, bolder, and unapologetically focused on real change.
Nonprofits are uniquely positioned to be powerful advocates. We have the stories, the data, and the trust of our communities. That is why it’s important to acknowledge that advocacy and lobbying aren’t just permitted—they’re essential tools to create the kind of long-term impact your mission calls for. So, collaborate relentlessly, push funders, push lawmakers, push the public, take risks, reject business-as-usual, and above all, remember: this work is not just charity. It’s resistance. It’s rebuilding. It’s a fight for a better future.
Additional Resources to Consider:
Influencing Public Policy in the Digital Age
Rules of the Game: A Guide to Election-Related Activities for 501(c)(3) Organizations
Keeping Track: A Guide to Recordkeeping for Advocacy Charities
Investing in Change: A Funder’s Guide to Supporting Advocacy