Making the Case for Nonprofit Policy Advocacy

As a Senate staffer on Capitol Hill in the early 2000s, I spent many hours meeting with people wanting to express their positions on issues before Congress or those they hoped we would champion. Many were from trade associations, labor unions, and industry. But those I trusted most came from community-based nonprofits who saw firsthand how people and places were not well-served by current policy. These advocates were motivated not by profit but by those they served and the evidence they gathered to understand what would make better policy.  

That’s why I was dismayed to read in a recent Independent Sector study that found in the last 20 years, the share of nonprofits engaging in advocacy or lobbying has significantly decreased. Less than one-third of nonprofits said they did in 2022, compared to three-quarters in 2000. It is concerning that today, fewer nonprofits are even aware of what advocacy and lobbying activities are allowed.  

This study gives us insight and direction as to how we in philanthropy can better support nonprofits to engage in policy and advocacy efforts. In particular, the study found nonprofits that participate in coalitions were significantly more likely to engage in nonprofit advocacy than those that do not. Similarly, the Trust has found success in an approach that we have taken over the last couple of years to support nonprofit organizations to work together in coalition to advance systems and policy changes that facilitate wealth creation. In 2020, the Trust launched the Coalitions for Equity in Wealth Policy funding program to support organizations working in coalition to dismantle policy barriers that disproportionately limit Black and Latinx economic potential and create new pathways for financial stability and wealth creation.   

The Trust has since awarded $4.8 million to 18 organizations, including grassroots community-based nonprofits and statewide advocacy groups that have been leading the way to achieving transformative policy change at the city, county, and state levels. Grant recipients gather community feedback on the issues that matter to them, develop campaigns to build awareness and knowledge, train and elevate resident voices in policy debates, and help craft and advance legislation and support their implementation.   

We’ve learned a lot from this grant making approach and seen results: 

1. Nonprofit advocacy efforts lead to tangible policy wins. Trust grant recipients have led efforts to increase income through an expanded state earned income credit and city and county-sponsored guaranteed income pilots. They championed a new statewide interest rate cap on payday lending and a state-level Community Reinvestment Act, making Illinois one of only a handful of states with such consumer protections.    

2. Nonprofit service providers and grassroots advocates are closest to the challenges and can see most clearly what policies and systems need to change. They have the expertise – both lived and well-studied – to elevate solutions and need to be resourced to be at the table.  

3. There is power in numbers. Resourcing organizations to work in coalitions allows them to be adaptive to an ever-evolving policy landscape.  

4. There is important work to do once legislation passes. Coalition partners continue to work with government agencies to craft rules and regulations and build awareness of what new legislation means for affected communities. Importantly, they push back against industry pressure to water down policy wins.   

Recognizing the power of this grant making approach, in August 2023, the Trust awarded an additional $2.5 million to 25 organizations for coalition-based advocacy efforts. Supporting nonprofits to engage in policy advocacy and civic engagement is critical to achieving our philanthropic mission and strategic goal to close the racial and ethnic wealth gap. Even without directly supporting lobbying activity, funders can strengthen nonprofits and their capacity to engage in policy advocacy and civic engagement. When we do, meaningful change that strengthens our communities can be achieved.