Leaders of nonprofit health and human service providers and philanthropies must engage with elected officials about the impacts of a tumultuous public policy landscape on the people and communities they serve. Advocacy and lobbying are essential strategies to safeguard your organization’s mission amid fiscal, regulatory, and legislative uncertainties at all levels of government.
Unfortunately, some nonprofits avoid political engagement due to uncertainty about Internal Revenue Service (IRS) rules governing 501(c)(3) public charities, fearing loss of tax-exempt status.
Atrómitos Founder, President & CEO Michealle Gady, JD, provides clear guidance on permissible and prohibited political activities and highlights possible IRS rule changes in June 2026 in a new policy brief, Navigating Nonprofit Advocacy and Lobbying for 501(s)(3) Organizations.
Definitions and Examples
Advocacy means supporting a cause, policy, or idea to inform policymakers. Allowable and unlimited advocacy activities include:
- Educating policymakers and the public about issues related to your mission
- Conducting research on health and human service policies affecting your community
- Hosting community forums
- Responding to requests from elected officials for information or technical assistance
Lobbying attempts to influence decisions made by regulators and legislators, but cannot be a “substantial part” of your organization’s activities. Examples of permitted, but limited, lobbying activities include:
- Contacting decision makers about proposed regulations
- Organizing grassroots campaigns to support or oppose specific bills
- Taking a public position on ballot measures
While there are no strict limits on spending for lobbying activities (except federal grant funds, which cannot be used for any lobbying expenses), experts recommend nonprofits cap these expenditures at no more than 5 percent of their annual budget.
Potential Johnson Amendment Changes
There is one type of civic engagement that is prohibited for all 501(c)(3) organizations – participating in political campaigns. The 1954 Johnson Amendment bans nonprofit organizations from:
- Endorsing or opposing candidates for office
- Contributing to political campaigns or political action committees (PACs)
- Distributing campaign literature
- Using organizational resources for campaign activities
Issuing public statements endorsing or opposing candidates
But definitions of banned political campaign activities may be changing as the U.S. Department of Treasury and the IRS have signaled they will issue new guidance (i.e., statements that explain, interpret, or advise on existing statutes or rules) by June 30, 2026, that may:
- Exempt political speech in places of worship
- Restrict nonpartisan voter registration, education, and get-out-the-vote efforts.
Additionally, there have been other judicial, legislative, and executive branch actions to modify the Johnson Amendment and limit the civic engagement activities of public charities.
An October 2025 federal court ruling that IRS political activity definitions are “unconstitutionally vague” for 501(c)(4) or social welfare organizations could impact definitions of political engagement for public charities (501(c)(3) organizations) in the future.
Members of Congress have introduced legislation allowing houses of worship to engage in political speech, while the executive branch has directed minimal enforcement of some IRS rules.
Action Steps to Successfully Navigate an Uncertain Future
Nonprofits and philanthropies should assume the assault on nonprofit advocacy and nonpartisan voter participation efforts will continue in the coming months and years.
Monitoring federal court decisions, legislative proposals, and executive branch actions through organizations such as the National Council of Nonprofits and statewide nonprofit or professional associations is the first step in staying informed about new developments. Other proactive initiatives include:
- Reviewing your organization’s voter engagement activities in light of potential new restrictions
- Tracking lobbying expenses systematically
- Developing concise policies distinguishing between advocacy and lobbying, while outlining allowable and prohibited activities
- Communicating the differences between organizational advocacy and personal political activities during training sessions for staff and board members
- Assessing if changing your organization’s IRS tax-exempt designation will clarify your advocacy or lobbying efforts
- Consulting trained legal counsel when questions arise
Please visit our Knowledge Hub to access the policy brief, as well as other free resources, including templates, toolkits, workshops, and podcasts designed to help your organization create lasting, positive change.