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Can 501(c)(3) Nonprofits Advocate? Yes — Here’s How
- Erin Schmidt
- 3 days ago
- 3 min read
Updated: 2 days ago
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Organizations should consult with legal counsel for specific guidance.
With rising attacks on civil society, nonprofit leaders are asking urgent questions: Can we speak out? Should we sign that coalition letter? What does advocacy even look like for a 501(c)(3)?
The short answer: Yes, 501(c)(3) organizations can advocate. But how you do it — and how much you do — depends on a few key details. Here's what you need to know.
How Can a 501(c)(3) Advocate?
Here are some common advocacy activities that are allowed under IRS rules:
Educating the public on issues related to your mission
Publishing research and reports
Engaging in nonpartisan voter education
Inviting lawmakers to visit a program so they can see how federal funding is being used
Speaking out on legislation (with limits on lobbying)
The IRS limits how much lobbying a 501(c)(3) can do, but not whether you can do it at all. And many organizations choose to file IRS Form 5768 (known as the 501(h) election) to clarify and expand their lobbying flexibility.
Only 32% of nonprofits today are aware that they can support or oppose federal legislation.
Despite these options, many nonprofits underutilize their advocacy power. According to Independent Sector, only 31% of nonprofits reported engaging in advocacy or lobbying over the last five years. That’s less than half the percentage that reported ever lobbying in 2000 (74%).
The decline in advocacy activity may be due in part to a lack of awareness about what is allowed. In 2000, over half of 501(c)(3) public charities (54%) knew they could support or oppose federal legislation. Today, just 32% of nonprofits are aware of that fact.
Need More Flexibility? Consider a 501(c)(4) or Affiliate Model
Some organizations create an affiliated 501(c)(4) to carry out more robust advocacy or lobbying. While a 501(c)(4) cannot offer tax-deductible donations, it can:
Do unlimited lobbying
Support or oppose ballot measures
Endorse candidates (with restrictions)
This structure allows your 501(c)(3) to remain focused on education and service, while your 501(c)(4) pursues policy change.
Should We Consult a Lawyer Before Engaging in Advocacy?
100% yes. While many forms of advocacy are clearly allowed under IRS rules for 501(c)(3) organizations, there are gray areas that depend on how your activities are structured and framed.
A qualified attorney can help you:
Interpret IRS rules in the context of your specific programming
Understand the limits of lobbying under the 501(h) election
Set up systems to track and report lobbying expenses if needed
You don’t need legal counsel to review every issue brief or policy statement, but if you're unsure whether something crosses a line—or want to plan more assertive advocacy efforts—it’s wise to get legal input early.
That said, legal clarity is just one piece of the puzzle. How, when and why your nonprofit engages in advocacy is another question entirely. If you're concerned about increased scrutiny or retaliation — and don't have the resources or support to fight back — this might not be the moment to get loud. Strategic advocacy is about timing and capacity, too. At Lilypad Strategies, we work with leadership teams to answer those big questions and develop advocacy communications and campaigns that are strategic, mission-aligned, and effective.
Final Thoughts
Advocacy is one of the most powerful tools you can use to defend your mission and community. The challenge is having the clarity, confidence, and courage to act. Whether through education, voter outreach or policy engagement, advocacy remains a critical lever for impact — and every organization must decide how, when, and why to pull it.
