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NEWS
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Why
is Public Policy Advocacy Important to Nonprofits?
Government regulations and laws can have a significant and powerful impact on every nonprofit organization and the people they serve. It is imperative for board members to become involved with policymakers at the city, county, state and national levels, and to raise their awareness of legislative and regulatory developments that affect their organizations and constituencies.
No social service agency can ignore rules relating to accounting, budgeting, taxation, and transparency without impacting those it serves and still be effective. Environmental organizations realize they must energize the public if the earth is to survive. Art and culture organizations know that without public support many groups would flounder, and many social services agencies need to ensure regulations are fair to their clients. The list goes on. While providing services are critical, so is speaking out on the issues that can help maintain or improve these services through advocacy.
The Alliance for Justice (http://www.afj.org), a nonprofit advocacy organization, provides a compelling argument for why nonprofits need to be involved in procedural issues that may go beyond the particular mission of the organization. Nonprofit organizations traditionally serve constituencies and issues that have a limited voice in the policy process.
Yet, over the last ten-to-fifteen years, the nonprofit sector has come under stricter scrutiny by state and federal officials. New federal and state laws have been passed affecting the sector, such as Sarbanes-Oxley Act and the California Nonprofit Integrity Act. Some of these new laws are helpful (recent ruling that the Federal government is now required to reimburse nonprofits they fund for reasonable overhead costs) but many create additional administrative paperwork and expense that are difficult for nonprofits, especially small- to medium-sized nonprofits, to absorb. Some are harmful, such as the change in IRS tax code for car donations that resulted in a drop in donations across the country. The nonprofit sector has not been effective at advocating on its behalf for regulations and resources that would help rather than diminish useful services.
When nonprofits speak out we can be very effective. Recently, there was an outcry when the IRS wanted donors’ social security numbers. The rule was stopped by an overwhelming number of comments from nonprofits explaining why it was unnecessary and how it could prove harmful. The IRS relented and will not ask for this information.
PUBLIC POLICY ADVOCACY by BOARD MEMBERS
Board members, often active in the community, have influence and connection to policy makers, which can be used to subsidize or enhance staff's work on behalf of your constituency. Perhaps a policy/rule/law will directly affect your clients or your agency. This type of 'speaking out' may involve educating the public about a policy or urging a policy maker to take a position on a rule or law. Community organizing, media campaigns, educating the public, researching and reporting on problems facing those you serve, working on voter registration or get-out-the-vote, and even protesting are all legitimate roles for nonprofits to pursue.
Nonprofits can and do engage in lobbying- it's perfectly legal, although some restrictions apply. Most public policy advocacy is not even considered lobbying, but rather education. The fear that it might be illegal, however, has for years stopped many from doing all that they should be to carry out their missions.
PUBLIC POLICY COMMITTEES
A sea change has occurred. Today there is a much greater understanding that "service alone" is not enough to assist your constituency and fulfill your mission. Taking public policy positions can increase your profile in the community, which also helps with fundraising. Boards that become involved in public policy work should also develop rules before speaking out and taking positions. This can be done through a Public Policy Committee that includes clear policy guidelines. Issues to consider include:
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Criteria for public policy positions
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Process for determining positions
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Who can speak on behalf of the organizations
For more detailed discussion of nonprofit advocacy and the rules on lobbying see the following resources:
Copyright 2016 Zimmerman Lehman
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