State Advocacy

In today's episode, we’re focusing on the topic of state advocacy, specifically exploring the vital role that nonprofits play in shaping policy and driving change at the state level, and how that role is increasingly coming under attack. We will discuss some of the landscape nonprofits are currently facing at the state level and provide actionable tips for organizations looking to amplify their impact. And we’ll be sharing information about exciting new state resources that are in progress at Bolder Advocacy!

Attorneys for this Episode

Brittany Hacker

Maggie Ellinger-Locke

Sarah Efthymiou

The Importance of State-Level Advocacy: 

·      State policies have as much, if not more, impact on local communities, than federal policies

·      State-level advocacy can lead to significant changes in policies around funding, regulations, and services

·      What are some benefits of state-level advocacy by and for nonprofits?

o   Can help strengthen community ties and build relationships with policymakers

o   Can enhance the visibility and credibility of the organization

o   Can help mobilize supporters and volunteers around key issues

o   These policy advocacy opportunities really allow nonprofit organizations to engage in some of the nuts and bolts of movement building.

Protecting Against State Legislative Attacks on Nonprofits:

·      "Laboratories of democracy,” a1932 opinion by Justice Louis Brandeis.

·      That vision still holds, states can test bold reforms especially when federal progress stalls.

·      But some state legislatures are taking aim at civil society.

·      Today we’re spotlighting four troubling trends: donor disclosure laws, “baby FARA” bills, charitable fundraising restrictions, and anti-DEI legislation.

o   Donor disclosure laws are framed as transparency measures—and in some contexts, transparency matters. We support campaign finance disclosure, where voters have a right to know who’s funding elections. But these bills chill speech and participation. Donor privacy protects safety, not secrecy.

o   Baby FARA bills have been introduced in 19 states and enacted in a few. These laws cast suspicion on global philanthropy and research partnerships, even when no government is involved. And it’s worth noting that the original FARA was passed in the 1930s to curb Nazi propaganda. Today, its logic is being flipped and weaponized against anti-fascists and transnational justice efforts.

o   Charitable fundraising restrictions limit who nonprofits can fundraise from. These are written so broadly they sweep in international aid, scientific collaboration, and humanitarian partnerships. These restrictions are framed as national security—but they risk cutting off essential support for nonprofits doing global work.

o   Anti-DEI laws have been introduced or passed in more than 30 states, targeting diversity, equity, and inclusion efforts, especially in public universities and government agencies. These billsreflects a broader effort to delegitimize inclusive values and restrict the space for nonprofits to advance justice.

·      Federal politics dominate the headlines. But the real action is in the states. These policies shape what’s possible for your work every day.

Offensive State Advocacy

·      Funding at the State and Local level: Advocate for nonprofit funding from state and local budgets. Fund nonprofits and research that may have been cut at the federal level

o      Advocating for this funding in budgets will count as lobbying

·      Lobby for protections greater than the federal level: lobby for legislation to protect interests that the federal government has attempted to limit through executive order or supreme court cases

o      Trans health care access for youth—SCOTUS allowed Tennessee to ban trans youth health care, but the Court did not ban trans youth healthcare nationally—states with progressive legislatures can enact protections for trans healthcare and can make themselves shield states to ensure that their providers are protected and can widely provide care.

§  We have seen similar action happen succssfully with regard to abortion and same sex marriage

o      Environmental protections—CA has requirements that exceed those that the federal government previously had

o      Consider ballot measures! State by state measures have been effective in the abortion context and bring the decision directly to voters.

Advocacy Rules for 501(c)(3) Organizations:

Under the federal IRS tax rules, 501(c)(3) public charities can engage in policy level at the state level, including lobbying. However, it is important to be aware potential limitations.

·       501(c)(3)s cannot engage in partisan political activities.

·       Public charities can lobby but are subject to limitations.

Unlike the federal system, state lobbying laws vary widely. Knowing where and when you need to register and report is essential to doing this work effectively, and legally.

There are three core questions to ask:

1.     Do I need to register?

2.     When is registration required?

3.     What does registration and reporting actually involve?

·      State lobbying definitions vary widely. Some states are strict—you might need to register just for liking a policymaker’s tweet. Others are more flexible and only require registration after you cross a threshold, like a certain number of contacts or hours worked.

·      If registration is required, what does that process look like? Some states charge a fee, others require ethics training, and most require paperwork. A few even ask for a headshot.

·      Some states require monthly or quarterly reports. Others, like Illinois, require reports every two weeks. Failing to file on time can lead to late fees, public scrutiny, or even criminal penalties in cases of willful noncompliance.

·      State rules differ dramatically, and you need to know the rules where you work. Luckily, Bolder Advocacy has your back. Our 50-state guide series—including DC and Puerto Rico—breaks it all down so you don’t have to guess.

·      At Bolder Advocacy, we’re here to help you lean into your power while staying in compliance. But too often, we see groups pull back out of fear—not because the law actually prevents them from acting, but because they worry about what might happen.

Conclusion

In all of this, we should remember that nonprofits are deeply rooted in community. We understand the issues. We see the harm. That gives us the insight and credibility to push for lasting change especially at our state and local levels

When you organize a lobby day and bring constituents face to face with lawmakers, or when you send an email urging your network to act on a bill, you’re shaping policy. You’re lifting voices. You’re fueling movements. And even if a bill doesn’t pass this year, your advocacy still matters. You’re building relationships, expanding your network, and making your cause more visible. Because while protests and litigation have their place, it’s this steady, strategic policy work that builds lasting power. Even in times when federal progress is limited. And that’s what advocacy is all about!

Resources

Being a Player: A Guide to the IRS Lobbying Regulations for Advocacy Charities

Practical Guidance Series: Lobbying 

Practical Guidance Series: Nonprofit Voter Assistance