In today’s interconnected world, the expectation for organizations to engage with societal issues has evolved from a fringe concept to a mainstream imperative. Advocacy, once the exclusive domain of specialized activists, has become a strategic function essential for both mission fulfillment in the nonprofit sector and long-term resilience in the business community. Stakeholders, from customers and employees to community partners and investors, increasingly demand that the organizations they support, work for and invest in take a stand and actively participate in shaping a better future. This shift signals a fundamental convergence of mission and market, creating a new ecosystem for community impact.
For the more than 20,000 nonprofit organizations across Arizona, advocacy is a critical tool that allows them to move beyond treating symptoms and begin addressing the root causes of the societal challenges they confront daily. It is the mechanism for translating on-the-ground experience into systemic change through public policy. For businesses, community engagement and corporate social responsibility have become a strategic pillar. They are now recognized as key drivers of employee satisfaction, brand loyalty, consumer trust and, ultimately, sustainable profitability.
The Rules of Engagement: A Guide to the Rules of Advocacy
Navigating the legal framework governing nonprofit advocacy is the first step to unlocking its strategic potential. A pervasive lack of clarity on these rules has historically suppressed the sector’s voice, leading to self-censorship and a reluctance to engage in crucial policy debates. However, the regulations established by the IRS provide generous latitude for 501(c)(3) organizations to advocate for their missions.
Permissible advocacy activities can include conducting and disseminating research, educating the community and policymakers, engaging in nonpartisan voter education and discussing broad social and economic problems. While 501(c)(3) organizations have a right to advocacy, they face an absolute prohibition on participating in partisan political activities, such as endorsing candidates or using resources for partisan political messages.
Businesses generally face fewer restrictions on advocacy and public policy than nonprofit organizations, but they still operate within a specific framework of rules. The primary regulations are designed to ensure transparency and prevent corruption in political spending, like rules around Political Action Committees (PACs). The 2010 Citizens United Supreme Court decision also affirmed that corporations have First Amendment rights to free speech, allowing them to spend corporate funds on political ads, as long as it’s not directly coordinated with a campaign. Additionally, the Lobbying Disclosure Act requires businesses to register and report their lobbying activities and expenditures, ensuring a level of public transparency. These rules create a navigable landscape for businesses to engage in political and public policy advocacy.
The Policy Arena: Why Your Backyard Matters Most
While federal laws can have sweeping effects, it is often the policies enacted at the state, county and municipal levels that can have the most direct and tangible impact on daily operations. The halls of the Arizona Legislature, county boards and city councils are where decisions on zoning, public health, labor standards and taxation are made; decisions that shape our local economic and social landscape. For Arizona’s leaders, engaging with the local policy arena is not just a civic duty but a strategic necessity.
A clear example of this is the recent passage of SB1496, a legislative effort led by AZ Impact for Good. This bill, signed into law by Governor Katie Hobbs on July 1, 2025, modifies the state tax credit for contributions to Qualifying Charitable Organizations (QCOs). By refining the definitions of “services” and “qualifying charitable organization,” SB1496 provides greater clarity and expands the scope of what qualifies for the tax credit, directly impacting the financial health and operational reality of nonprofits across the state. This victory demonstrates how targeted, state-level advocacy can produce profound and positive consequences for our entire sector in Arizona.
Businesses can take a proactive stance by developing and implementing Corporate Social Responsibility (CSR) programs that align with their advocacy goals. By integrating advocacy into their CSR strategies, businesses can demonstrate their commitment to social responsibility and create a lasting impact on the communities they serve.
An Action Plan for Impact
Advocacy is no longer an optional activity; it is a necessary and powerful tool for creating systemic change and building a stronger, more prosperous Arizona. The most significant barriers to this work are not legal prohibitions but a persistent knowledge gap and a sense of isolation. The most effective solution is collective action, facilitated by a strong, unifying entity that provides the education, resources and platform for a unified voice.
AZ Impact for Good is that unifying entity here in Arizona. We invite nonprofits, businesses and grantmakers to become members and join us at the forefront of this vital work. Members gain exclusive access to our monthly Policy Council sessions, where we analyze critical state and national issues that affect our sector. These sessions are not just informational; they are interactive, allowing our members to help guide our advocacy actions.
In addition to joining our policy council, businesses can engage in advocacy by forming partnerships with local community organizations and nonprofits that match the business’s interests and core values. These collaborations can amplify their impact and provide valuable insights into the needs and challenges faced by the community. Businesses can also host educational workshops and seminars to raise awareness about important issues and encourage their employees to participate in advocacy efforts, increasing employee satisfaction with a low-cost improvement. These programs can include initiatives such as volunteer days, donation matching and sponsorship of community events.
As the official state affiliate of the National Council of Nonprofits (NCN), we work directly with our national partners who are extremely active on federal issues. The Council’s president and CEO, Diane Yentel, has spoken before multiple congressional subcommittees on behalf on nonprofits, defended the right to advocacy, and spoke against the freezing of federal funds that impacted the nonprofit sector. We serve as its conduit in Arizona, ensuring our members are connected to and can influence advocacy at the highest levels. The path forward requires a commitment to education, a willingness to engage and a belief in the power of collaboration. As nonprofit and business leaders, we can work together to make a lasting impact.
