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Nonprofit Management

Nonprofit Management. Chapter 14 : Advocacy and Lobbying. Stages in the Life Cycle of a Social Change Issue (Andreasen, 2006). Stage 1: Inattention to the problem Stage 2: Discovery of the problem Stage 3: Climbing the agenda Stage 4: Outlining the choices

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Nonprofit Management

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  1. Nonprofit Management Chapter 14: Advocacy and Lobbying

  2. Stages in the Life Cycle of a Social Change Issue (Andreasen, 2006) • Stage 1: Inattention to the problem • Stage 2: Discovery of the problem • Stage 3: Climbing the agenda • Stage 4: Outlining the choices • Stage 5: Choosing courses of action • Stage 6: Launching initial interventions • Stage 7: Reassessing and redirecting efforts • Stage 8: Achieving success, failure, or neglect

  3. Terminology • Advocacy -- action taken to support a general cause • Lobbying -- action taken to support or oppose specific legislation • Political campaign activity -- action taken in support of or opposition to specific candidates for office

  4. Nonprofit Ambivalence about Lobbying • Less than two percent of nonprofit organizations engage in lobbying • Larger, national organizations • Organizations in fields that are significantly regulated • Reasons for ambivalence • Belief that lobbying is irrelevant to the mission • Belief that lobbying is inappropriate • Inadequate staff or resources • Concern about alienating current or potential funders • Lack of clarity about the law

  5. Overview of Lobbying Law for Nonprofits • 501(c)(4) -- can engage in lobbying essentially without restriction • 501(c)(3) -- limited in lobbying activity and prohibited from political campaign activity • Tax deductibility of gifts as public subsidies • Private foundations versus public charities • Sections 4911 and 501 of the Internal Revenue Code • Substantial part test • 501(h) expenditure test • Other laws related to lobbying practice • Lobbying Disclosure Act • Gift rule

  6. Political Campaign Activity • Charitable nonprofits are prohibited from engaging in campaigns and from endorsing candidates, either implicitly or explicitly • Coordinating their activities with those of a candidate or a campaign • Contributing money or time to work for a candidate • Contributing the use of their facilities for a candidate or campaign

  7. Citizens United v. FEC (2010) • Applies to business corporations and nonprofits exempt under Section 501(c)(4), 501(c)(5), and 501(c)(6) • Constants • Cannot make monetary or in-kind contributions directly to candidates for federal office • Cannot coordinate their communication with candidates’ campaigns • Key change • Can make independent expenditures from their general treasury to expressly support or oppose candidates for federal office

  8. Best Practices for Advocacy and Lobbying • Determine the reason for lobbying and how it advances the nonprofit’s mission • Understand the legislative process • Identify the sources of funds • Undertake research • Develop an understanding of relevant public policy issues • Obtain data needed to make the case with legislators • Develop an infrastructure to support the lobbying program • Inventory existing relationships and identify decision makers • Use a strategic mix of tactics

  9. Debate About Nonprofit Advocacy • Push for increased involvement by nonprofits in electoral politics • Virtuous cycle between advocacy and program delivery (Crutchfield and Grant, 2008) • Efforts to obtain legislative action but ignore political realities are naïve (Hessenius, 2007) • Reasons for concern • Potential for unethical use of nonprofit organizations • Jack Abramoff and the Capital Athletic Foundation • Unwillingness of taxpayers to subsidize partisan political activities by nonprofits

  10. FORCES FOR GOOD • Advocate and Serve • Make Markets Work • Inspire Evangelist • Nurture Nonprofit Networks • Master the Art of Adaptation • Share Leadership

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