The power of data in advocacy: How we show the sector’s impact with numbers 

Nonprofits are a pillar of American life, supporting the causes we hold dear across all communities. This is self-evident for those who work in philanthropy and at nonprofits, but it can be a different story for the public and, crucially, lawmakers. This was evident earlier this year with H.R. 1, which included proposed provisions that would hinder nonprofits. 

At the Council on Foundations, United Philanthropy Forum, and the National Council of Nonprofits (NCN), we recognized the need to help policymakers understand the fundamental role of nonprofits in their constituent communities—and we couldn’t do that without the help of strong data in our advocacy efforts. Among the many issues in H.R. 1 we worked on, we showcase below how we used data in partnership with Candid to address certain provisions and show the nonprofit sector’s positive impact. 

Data to highlight the impact of proposed legislation on local communities 

For those who don’t work directly in the charitable sector, our work can often feel opaque. The Council on Foundations had already been helping foundations tell their story and the positive impact of their work in local communities across the country. However, with some of the proposed provisions included in H.R. 1, we knew foundations urgently needed to share their stories.  

One provision in the House-passed bill was a tiered increase to the private foundation net investment income tax. Candid supplied state-by-state data on the charitable dollars this proposal would divert from foundations and, in turn, the nonprofits they support. Along with local stories, we shared that state-specific information so members of Congress and their staff had a full picture of the potential impact of that provision on the communities in their districts and states. Candid’s data helped show the impact of the proposed tax increase beyond any single organization, which mobilized our members and informed their own advocacy. This collaboration, including using data in advocacy, helped foundations share stories of their good work with policymakers, which helped convince them to remove the provision from the final bill. 

Data underscoring a strategic shift framing the sector as key to community well-being 

A few years ago, the Forum made the strategic decision to move beyond solely defending institutional interests. We fundamentally reframed our advocacy strategy to focus on creating a policy environment that enables a strong sector and thriving communities. This year, amid an unprecedented convergence of threats to the sector and the communities we serve, we launched a campaign that incorporates this community-centered strategy, Advocacy, Awareness, & Action: A Strategic Campaign to Defend and Advance Philanthropy’s Freedom To Invest in Community Well-Being.  

As part of this long-term campaign, we used Candid’s data to illustrate how the proposed tax increase on private foundations would annually divert billions of dollars nationally and millions at the state level from the communities that rely on philanthropic funding for critical services. With this data, our philanthropy-infrastructure organization members and the more than 7,000 funders they represent mobilized and framed charitable giving as a public good. By educating lawmakers and the public on the vital role the philanthropic ecosystem plays in sustaining community well-being, we helped persuade members of Congress to remove the provision from the bill. In other words, a strategic shift in framing and data in advocacy helped secure a win for communities across the country.  

Spotlighting small nonprofits around the country 

NCN shares data with nonprofits to support their advocacy efforts, and data from trusted partners illustrates which nonprofits are more likely to be affected by policy proposals. A data point that’s not widely known is that most nonprofits are small. Candid’s new data confirmed findings from NCN’s previous research that 92% of nonprofits spend less than $1 million annually. 

H.R. 1 also included a proposal to impose a new tax on nonprofit employers, based on the transportation benefits they provide, which would have taken revenue away from nonprofits. Candid’s data referenced in NCN’s About the Nonprofit Sector one-pager emphasized a key point: charitable nonprofits are “small and effective” and “adept at deploying scarce resources effectively and making every dollar count.” A new tax on local nonprofits would make it harder to provide essential services to their neighbors. Citing multiple sources made it easier to spotlight nonprofits in congressional districts. Outreach backed by data helped remove the proposal to tax nonprofit employers. 

As our advocacy efforts showed, highlighting reliable data in our advocacy efforts made a real difference in helping lawmakers understand how restricting nonprofits would harm their communities. While we celebrate these wins, we also know that H.R. 1 included provisions that may disincentivize giving and increase the demand for nonprofit services, including health and food assistance. As we continue our work in a challenging environment, our organizations will continue to lean on data as we share the good work of our sector. 

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