If you’re leading a nonprofit right now, you’re probably feeling anxious about what you can and cannot say. With the current administration targeting organizations that don’t align with its views, many nonprofit leaders are going silent—afraid that speaking up will put their tax-exempt status at risk.
But here’s what you need to understand: There’s a critical difference between political activity and advocacy. And knowing that difference might be the most important thing you learn this year.
The Definitions That Matter
Political activity (prohibited for 501(c)(3) nonprofits): Supporting or opposing candidates for public office. This includes endorsements, campaign contributions, and telling people who to vote for.
Advocacy (allowed and encouraged): Speaking out on issues, educating the public about problems and solutions, and taking positions on policies that affect your mission.
Lobbying (allowed within limits): Attempting to influence specific legislation by contacting lawmakers or urging the public to contact them.
The line is actually pretty clear: You can fight for policies. You just can’t tell people which politicians to vote for.
What You Can Actually Do
Let’s make this concrete. Say your nonprofit addresses homelessness in your community:
You CAN:
- Advocate loudly for increased affordable housing funding
- Lobby for tenant protection laws
- Educate the public about the root causes of homelessness
- Testify at the city council meetings about harmful policies
- Organize community members to contact legislators about housing bills
- Take a position on a ballot measure about housing funding
- Publish reports on what policies work
You CANNOT:
- Endorse Mayor Smith because she supports affordable housing
- Oppose Councilmember Jones because he voted against housing funding
- Tell your supporters which candidates to vote for based on their housing positions
- Contribute organizational resources to political campaigns
See the difference? Issue advocacy is not only legal—it’s essential to your mission.
The Rules on Lobbying
Under IRS rules, 501(c)(3) organizations may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status. Most nonprofit experts recommend making the 501(h) election, which provides clear limits.
Under this election, nonprofits can spend 20% of their first $500,000 in annual expenditures on direct lobbying, with a portion of that available for grassroots lobbying (encouraging the public to contact legislators).
For a nonprofit with a $250,000 budget, that means you could spend up to $50,000 on direct lobbying and $12,500 on grassroots lobbying. That’s substantial room to advocate.
The key: Direct lobbying involves communicating with legislators or government officials who participate in the formulation of legislation, while grassroots lobbying involves encouraging the public to contact legislators.
If this is something your organization wishes to do, discuss with the board (and attorney if you have one) and file IRS Form 5768 to make the 501(h) election. It’s one page that gives you clarity and protection.
The Current Threat Landscape
Here’s why this matters more than ever: The Trump administration is deploying threats ranging from revocation of tax-exempt status to embedding government agents in independent organizations, targeting institutions from Harvard University to climate and justice nonprofits.
Trump has publicly threatened to revoke Harvard’s tax-exempt status and called tax-exempt status “a privilege” that’s “been abused,” while also threatening organizations like Citizens for Responsibility and Ethics in Washington.
Some organizations have removed references to racial or gender equity to avoid “blowback from the administration,” creating a chilling effect across the sector.
But self-censoring on your mission and issues is precisely the wrong response.
Don’t Confuse Threats with Law
The administration may threaten nonprofits that advocate on issues it doesn’t like. But advocating on issues is legal. The IRS rules haven’t changed.
The threats rest on shaky legal grounds, and nonprofits have both constitutional and statutory grounds to counter them.
What you cannot do is participate in political campaigns. What you absolutely can do—and must do—is advocate for the policies and changes your mission requires.
If you go silent on your issues out of fear, you’re letting intimidation accomplish what the law doesn’t actually prohibit.
What You Should Do Right Now
1. Get your house in order. Conduct a risk audit to identify vulnerabilities and address them proactively. Ensure your books are meticulous and track any lobbying time and expenses carefully.
2. Know the rules. Understand what’s actually prohibited (campaign activity) versus what’s permitted (issue advocacy and lobbying). Don’t rely on fear or rumors. Do your research.
3. Make the 501(h) election. This gives you clear spending limits for lobbying and reduces your audit risk. It’s protective.
4. Document your advocacy. Keep records showing your work is issue-focused, not candidate-focused. Track your lobbying expenses if you’re doing substantial amounts.
5. Educate your board. Many board members don’t understand these distinctions. Train them on what the organization can do versus what they can do personally (which includes political activity).
6. Don’t self-censor on issues. Your mission matters. The people you serve need you to speak up. Advocacy for your cause is legal and necessary.
7. Build community. According to advocates, nonprofits should stand together to defend the sector rather than capitulating to unlawful threats. Connect with other nonprofits, join your state association, and support collective action.
8. Seek legal guidance when needed. If you’re unsure about a specific situation, consult with a nonprofit attorney. Don’t guess about your compliance.
How Often Should You Engage in Advocacy?
As often as your mission requires. Advocacy shouldn’t be a special project you do occasionally—it should be woven into your regular work.
- Share data and stories that illustrate the need for policy change
- Educate your community and policymakers about issues
- Respond to harmful policy proposals
- Support beneficial legislation
- Ensure decision-makers hear the voices of those you serve
This isn’t extra work—it’s core work. You can’t fully serve your mission if you ignore the systems and policies that create the problems you’re trying to solve.
Tip: Make advocacy education moments a regular part of board meetings.
The current attacks on nonprofits are designed to intimidate and silence civil society. But you don’t have to comply with intimidation that goes beyond the law.
Know the difference. Operate within the rules. Document your compliance. But do not go silent on the issues that matter.
Your community needs your voice. Your mission requires it. The law permits it.
Now speak up.
Resources:
- IRS guidance on lobbying: irs.gov/charities-non-profits/lobbying
- Alliance for Justice: bolderadvocacy.org
- National Council of Nonprofits: councilofnonprofits.org
- Your state nonprofit association
Stay informed, stay compliant, stay vocal.
