Good News: IRS Rules Allow Some Nonprofit Advocacy

To the Editor:

Sam Daley-Harris’s excellent article about the power of pragmatic and transformational advocacy was a welcome antidote to the minimalist and ineffective approach to advocacy most organizations adopt (“How Nonprofits Lose Out When Volunteer Advocates Are Asked to Do Little Real Advocacy,” May 2). If we are to address the major crises affecting our nation and planet, direct service is essential.

One barrier to public-interest advocacy is the widespread misconception that nonprofits are not allowed to lobby. The IRS makes it clear that this is not the case, stating that a “501(c)(3) organization may engage in some lobbying.” The IRS further clarified what kinds of lobbying are allowed in a letter to Independent Sector in 2000.

Crucially, much of what most nonprofits consider lobbying is not in fact lobbying, which is defined by the IRS as trying to influence legislation. Educating the public and legislators about the impact of current or proposed laws is allowed, because as long as nonprofits don’t advocate for the passage or repeal of specific laws, they are not lobbying under IRS guidelines.

In fact, those guidelines specifically state, “Organizations may, however, involve themselves in issues of public policy without the activity being considered as lobbying. For example, organizations may conduct educational meetings, prepare and distribute educational materials, or otherwise consider public policy issues in an educational manner without jeopardizing their tax-exempt status.”

Silence by nonprofits in the face of harmful or beneficial policies supports the status quo. Daley-Harris’s article and his book Reclaiming Our Democracy help the field advance justice. Greater clarity about what the IRS permits is vital as well.

Alex Counts
Founder
Grameen Foundation