{"id":23025,"date":"2021-06-18T19:21:00","date_gmt":"2021-06-18T19:21:00","guid":{"rendered":"http:\/\/localhost:10053\/what-can-and-cannot-philanthropy-do-in-terms-of-advocacy-policy-and-politics\/"},"modified":"2025-02-21T16:22:28","modified_gmt":"2025-02-22T00:22:28","slug":"what-can-and-cannot-philanthropy-do-in-terms-of-advocacy-policy-and-politics","status":"publish","type":"post","link":"https:\/\/www.insidephilanthropy.com\/explainers\/what-can-and-cannot-philanthropy-do-in-terms-of-advocacy-policy-and-politics","title":{"rendered":"What Can\u2014and Can\u2019t\u2014Philanthropy Do in Terms of Advocacy, Policy, and Politics?"},"content":{"rendered":"\n<div style=\"margin-bottom:2%\" class=\"wp-block-genesis-blocks-gb-container explainer-heading gb-block-container\"><div class=\"gb-container-inside\"><div class=\"gb-container-content\">\n<div class=\"wp-block-genesis-blocks-gb-columns gb-layout-columns-3 gb-3-col-equal\"><div class=\"gb-layout-column-wrap gb-block-layout-column-gap-2 gb-is-responsive-column\">\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\">\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"400\" src=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new.png\" alt=\"\" class=\"wp-image-23311\" style=\"width:150px\" srcset=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new.png 500w, https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/learning-center-icon-new-300x240.png 300w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\"><div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"381\" src=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page.png\" alt=\"\" class=\"wp-image-23078\" style=\"width:300px\" srcset=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page.png 750w, https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/explainer-logo-for-detail-page-300x152.png 300w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure><\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-column gb-block-layout-column gb-is-vertically-aligned-top\"><div class=\"gb-block-layout-column-inner\" style=\"text-align:center\"><div class=\"wp-block-image\">\n<figure class=\"alignright size-full is-resized\"><a href=\"\/ipcontent\/explainers\/WhatCanandCantPhilanthropydoinTermsofAdvocacyPolicy,andPolitics.pdf\"><img loading=\"lazy\" decoding=\"async\" width=\"100\" height=\"127\" src=\"https:\/\/www.insidephilanthropy.com\/wp-content\/uploads\/2024\/03\/pdf-download.jpg\" alt=\"\" class=\"wp-image-23077\" style=\"width:50px\"\/><\/a><\/figure><\/div><\/div><\/div>\n<\/div><\/div>\n<\/div><\/div><\/div>\n\n\n\n<div class=\"wp-block-genesis-blocks-gb-container gb-block-container\"><div class=\"gb-container-inside\"><div class=\"gb-container-content\">\n<ul class=\"wp-block-list\">\n<li>Private foundations can\u2019t lobby or directly fund lobbying.<\/li>\n\n\n\n<li>There are lots of ways funders of all types can influence U.S. politics and policies.&nbsp;<\/li>\n\n\n\n<li>Election-related political giving is not tax-deductible, nor anonymous.<\/li>\n<\/ul>\n\n\n\n<p>From funding research into diseases that afflict millions to shaping the state of K-12 education, philanthropists today have enormous impact on issues that affect people\u2019s daily lives. There are many vehicles through which donors can move money to advance their respective visions for society and the world. But there are <em>some<\/em> limits on what U.S. philanthropists can do when it comes to political advocacy and influencing public policy through nonprofits.&nbsp;<\/p>\n\n\n\n<p>The limits mostly relate to direct engagement with elected officials and specific pieces of legislation. If a funder wants to do that, they have to do it transparently, with their name visible as supporting or opposing a candidate. There are limits to how much money they can move for this purpose, and they\u2019re not going to get a tax deduction for it. But short of giving to political campaigns or directly lobbying elected officials, funders have a lot of options to influence society while also receiving tax deductions. And they can choose to do a lot of it anonymously.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<p><strong>To break it down . . .&nbsp; <\/strong>&nbsp;<\/p>\n\n\n\n<p>Advocacy, broadly defined, is any activity that advances an organization\u2019s mission. Political advocacy is about trying to influence elected officials\u2019 decisions and public policies. Where philanthropy is limited is in how directly or explicitly it can try to influence politicians or legislation.&nbsp;<\/p>\n\n\n\n<p>Lobbying is one form of advocacy. There\u2019s direct lobbying, which is directly communicating with an elected official around a piece of legislation. And then there\u2019s grassroots lobbying, which is more about engaging with a community about what\u2019s at stake with a piece of legislation and encouraging them to take action for or against it. Nonprofits and <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-community-foundation\">community foundations <\/a>can engage in some grassroots lobbying as long as it\u2019s not a substantial part of their budget or work. (The IRS guidelines on what\u2019s substantial are pretty murky, <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/whats-the-difference-between-a-501c3-and-501c4\">but that\u2019s another story.<\/a>)&nbsp;<\/p>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-private-foundation\">Private foundations<\/a>, however, are not allowed to lobby, and can be hit with a significant tax if they do.&nbsp;<\/p>\n\n\n\n<p>But there\u2019s a lot more to political advocacy than lobbying. What private foundations <em>can<\/em> do is fund things like nonpartisan voter education or research on issues related to their missions. Foundations can have a big impact in shaping public perceptions on issues that politicians and legislation address, especially if they collaborate with other like-minded funders on a coordinated strategy. It\u2019s hard for a single funder to move national policy, but a network of funders working in a coordinated way can have a significant impact. We\u2019ve seen this with the coordinated efforts of conservative funders over the past half century to fund think tanks, research, communications campaigns, and more that promote free-market ideology and disparage big government, which has played no small part in big cuts to public spending on social programs, the arts and other programs in recent decades.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Foundations can also make grants to nonprofits that do some lobbying, as long as the funding is not earmarked for lobbying. A general operating grant to an organization that engages in some grassroots lobbying could partially be spent on that activity, if the grantee chooses.&nbsp;<\/p>\n\n\n\n<p>The really clear line the IRS draws between \u201cpolitical contributions\u201d and \u201ccharitable contributions\u201d is here: No 501(c)(3)\u2014neither public charities nor private foundations\u2014can engage in partisan election-related activities like donating to a candidate or campaign.&nbsp;<\/p>\n\n\n\n<p>But a philanthropist doesn\u2019t have to give to or through a 501(c)(3). Donors can choose to give to 501(c)(4)s and\/or through structures other than foundations, like Priscilla Chan and Mark Zuckerberg\u2019s <a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-an-llc\">LLCs<\/a>. Or they can donate as individuals or corporations directly to a campaign or a PAC (a political action committee\u2014an entity that exists specifically for political fundraising). But these political contributions\u2014contributions to political parties, campaigns or candidates\u2014are not tax-deductible. They are also limited in terms of amount, and once it\u2019s over $50, can\u2019t be given anonymously.<\/p>\n\n\n\n<p>So if a funder wants their political advocacy to be considered charitable\u2014if they want a tax deduction for it\u2014and they want the option of anonymity, campaign contributions and direct lobbying are out. But there are many other ways philanthropists can influence politics and policies. &nbsp;<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\">You might also want to check out:<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/whats-the-difference-between-a-501c3-and-501c4\">What\u2019s the difference between a 501(c)(3) and 501(c)(4)?<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-an-llc\">What is an LLC?<\/a><\/p>\n\n\n\n<p><a href=\"https:\/\/www.insidephilanthropy.com\/explainers\/what-is-a-private-foundation\">What is a private foundation?<\/a><\/p>\n<\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p class=\"\">From funding research into diseases that afflict millions to shaping the state of K-12 education, philanthropists today have enormous impact on issues that affect people\u2019s daily lives. There are many vehicles through which donors can move money to advance their respective visions for society and the world. But there are <em>some<\/em> limits on what U.S. philanthropists can do when it comes to political advocacy and influencing public policy through nonprofits.<\/p>\n","protected":false},"author":470,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":true,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"content-sidebar","footnotes":""},"categories":[26779],"tags":[26780],"ppma_author":[32648],"class_list":{"0":"post-23025","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-explainers","7":"tag-ip-explainer","8":"author-ipstaff","9":"entry"},"featured_image_src":null,"featured_image_src_square":null,"author_info":{"display_name":"IP Staff","author_link":"https:\/\/www.insidephilanthropy.com\/author\/ipstaff"},"authors":[{"term_id":32648,"user_id":470,"is_guest":0,"slug":"ipstaff","display_name":"IP Staff","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&r=g","author_category":"","first_name":"IP Staff","writer-profile":"","last_name":"","user_url":"","job_title":"","linkedin":"","instagram":"","twitter":"","facebook":"","description":""}],"_links":{"self":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23025","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/users\/470"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/comments?post=23025"}],"version-history":[{"count":3,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23025\/revisions"}],"predecessor-version":[{"id":206233,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/posts\/23025\/revisions\/206233"}],"wp:attachment":[{"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/media?parent=23025"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/categories?post=23025"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/tags?post=23025"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.insidephilanthropy.com\/wp-json\/wp\/v2\/ppma_author?post=23025"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}