When and Why Nonprofits Should Engage in Government Relations

Key Takeaways

• Nonprofit organizations enhance their impact by engaging in government relations at crucial moments.

• Advocacy helps shape policies affecting a nonprofit’s mission and funding streams.

• Understanding advocacy regulations is crucial for effective and legal participation.

• Collaboration and relationship-building are cornerstones of successful government relations.

Nonprofits serve on the front lines of society’s most significant challenges, working tirelessly to fill crucial gaps and lift communities in times of need. Whether fighting hunger, providing educational resources, supporting the arts, or advancing environmental causes, nonprofits have a unique perspective and responsibility. Yet, many organizations are hesitant to engage in government relations, uncertain about the right timing, practical strategies, or even what advocacy activities are legally permissible. Strategic advocacy, particularly in environments such as government relations in Washington, DC, empowers nonprofits to shape legislative landscapes, ensure mission relevance, and build long-term sustainability for their programs and the people they serve.

The decision to engage in government relations is often pivotal to a nonprofit’s success. Active advocacy enables nonprofits to have a voice in the decision-making process, influencing laws and policies that shape funding streams, program priorities, and broader societal outcomes. According to a 2023 Independent Sector study, fewer than 25% of nonprofits lobbied for any legislation—a significant decline from 75% just five years earlier. This decline is primarily due to concerns about compliance and a lack of available resources and expertise. However, with careful planning and an understanding of regulatory frameworks, nonprofits can participate with confidence and effectiveness, protecting their missions as well as those they serve.

When Should Nonprofits Engage?

Knowing the right moments to engage in government relations is just as important as knowing how to do it. Since the policy landscape is always changing, nonprofits need to stay alert to new opportunities as they arise. They should advocate when key legislation or policy shifts threaten or support their missions, or when new proposals could influence their work. For instance, an arts organization might respond to municipal budget cuts in arts funding, or an environmental group might advocate for changes in land-use or climate laws. Early involvement helps influence policy before decisions are finalized, often driven by regulatory changes, funding opportunities, or urgent issues in their field. Important dates include legislative sessions, hearings, and budget deadlines. Being proactive during these times enables nonprofits to present data, stories, and expertise to lawmakers, thereby enhancing their influence. This may involve forming coalitions, rallying supporters, and informing decision-makers about how policies affect their clients. Proactive engagement increases the chances of securing favorable outcomes for their causes.

Why Government Relations Matters for Nonprofits

Effective government relations extend beyond safeguarding a single organization’s interests. Advocacy efforts strengthen the sector, amplify the voices of marginalized communities, and promote fair policies that benefit all communities. By providing evidence-based insights, nonprofits can meet urgent needs and challenge systemic inequalities. For instance, a food bank might advocate for anti-hunger laws to ensure sustainable support. At the same time, a health organization could influence legislation to expand healthcare access for rural or low-income populations. In addition to fulfilling their mission, advocacy helps develop public partnerships, secure funding, and increase visibility. Policymakers often rely on nonprofits’ expertise when drafting laws. Active organizations attract supporters, grants, and collaborations, boosting their influence and credibility with media and the public.

Effective Government Relations Strategies

Building trusting relationships is crucial for effective advocacy. Leading nonprofits stay in contact with lawmakers and officials throughout the year through regular meetings, briefings, and visits. Sharing updates and stories of impact builds respect and keeps organizations prominent. Creating coalitions enhances influence, shares resources, and shows community backing, allowing nonprofits to strengthen their voices and present unified proposals. Educating stakeholders through op-eds, town halls, webinars, emails, and events raises awareness of policy effects, mobilizes grassroots support, and encourages community involvement.

Navigating Legal Boundaries in Advocacy

Many nonprofits steer clear of government relations due to perceived legal hurdles, but 501(c)(3) organizations may engage in lobbying for legislative change provided they adhere to IRS regulations and avoid partisan activities. The lobbying activities are capped at under 5% of their total activities or budget, with the 501(h) test offering more precise guidance. Key activities include disseminating research, providing testimony, offering nonpartisan education, and informing policymakers. Hosting candidate forums and voter education efforts is permitted as long as they maintain neutrality. Keeping records of lobbying efforts is essential for compliance and serving as documentation if required.

Conclusion

Strategic, informed engagement in government relations is one of the most potent ways nonprofits can ensure their missions remain relevant and robust in changing political environments. It opens new avenues for funding, shapes the very systems in which they operate, and expands their capacity to make lasting changes for the causes they champion. By understanding when, why, and how to advocate—and by building relationships rooted in trust—nonprofits transform policy spaces not just for themselves, but for all those they serve.