Nonprofit Organizations that Promote Diverse Participation in U.S. Democracy

• In Event: NGO’s in Politics: Mobilization, Inequality, and Inclusion

Abstract

Nonprofit Organizations that Promote Diverse Participation in U.S. Democracy


Summary: Politically active Social Welfare Organizations that undertake grassroots civic engagement activities promote diverse participation in U.S. democracy and counteract the anti-democratic efforts to disenfranchise people of color and under-resourced communities. Using multiple methods, this study identifies the distinctive qualities and outcomes generated by 501(c)(4) social welfare nonprofit organizations that are active in marginalized communities. Data on this under-researched segment of U.S. nonprofit organizations will provide scholars of civil society and American democracy a deeper understanding of the organizational arrangements that facilitate citizen voice and participation.

Background: Politically active 501(c)(4) social welfare organizations occupy a unique niche in the nonprofit sector. However, there is little empirical evidence that examines their distinctive features or the capacities they require for political effectiveness. This study advances our knowledge of those 501(c)(4) organizations dedicated to mobilizing voter engagement and impacting policy change in diverse communities. Counter to a common view of 501(c)(4) organizations as only shell organizations that hide donors and conceal enormous contributions to partisan political campaigns, we identify entities that aim to influence governing power and policy change through the civic and political engagement of communities often outside of mainstream politics. These organizations are rooted in grassroots, member-based engagement and build their membership from constituencies that have been marginalized in the political process, and in communities that have experienced chronic disinvestment, economic inequality, and isolation. Their primary purpose is to build civic leadership and to create pathways for those constituencies to engage in democratic processes beyond the traditional representational role that most advocacy organizations play.
Social welfare organizations (classified by the IRS as 501(c)(4) nonprofits) are permitted to engage in wide-ranging advocacy, lobbying, and electoral activities. Evidence from case study research and the field of practice suggests that there is an expanding ecosystem of 501(c)(4) organizations and affiliated organizations (connected charities, social welfare organizations, and political action committees) that use grassroots organizing to accomplish electoral and social policy change goals within low-income communities and communities of color. Our research, using qualitative methods to augment data from IRS Forms 990 and internet research, promotes understanding of the characteristics, activities and networks that make up this subset of organizations. We explore the opportunities and barriers they experience as (c)(4) entities and examine their programming, funding, governance, and operations/ staff structures. Central to our research is the extent to which they facilitate greater democratic engagement through their activities and beyond the activities of (c)(3) public charities.
Research Methods: Building on research that identified 4,500 politically active 501(c)(4) organizations from among the 81,000 social welfare organizations, we further refined this dataset to identify a sample of mid-sized organizations that work in marginalized communities. The research seeks to answer: 1) Do these 501(c)(4) organizations engage local residents in political and civic action (voting, petitioning, campaigning, etc.)? If so, to what extent? 2) Do they have a measurable influence on policy and political outcomes (campaign wins, reputation, influence)? and 3) What organizational capacities (resources, staffing, size of membership, networks) are associated with political effectiveness?
Beginning with financial and organizational data from IRS Forms 990, we then employ both quantitative and qualitative methods, including web research and outreach to organizations. Interviews with CEOs and funders enhance our understanding of how organizational structure and function impact political effectiveness: the ability to win electoral and legislative change.
We compare organizations across geography, issue area, and membership identity, and we look across the sample for patterns of similarities and differences. We explain the relationships between organizational structure and function and dimensions of political effectiveness. With a focus on organizations in 5 states (Ohio, Florida, Arizona, Virginia, and Texas), we also explain how the organizations fit within the growing ecosystems of other advocacy and political organizations at the state level and examine the role of coalitions, networks, and alliances that share resources and talent and provide training for community activists. These findings provide new insight into how 501(c)(4) organizations function and contribute to strengthening democracy.

Authors

• Elizabeth T. Boris, Urban Institute

• Margaret A. Post, Clark University