Last week, I attended Foundations on the Hill (FOTH) in Washington, DC, with three Exponent Philanthropy colleagues to discuss how federal policy changes impact our communities and nonprofit partners. The 22nd FOTH brought together a record number of donors, foundation leaders, and nonprofit staff to be briefed on legislative actions and provided guidance advocacy in uncertain times. Exponent Philanthropy was well represented, with nearly two dozen members and four staff in attendance.
Philanthropy is deeply personal and plays a crucial role in American civil society, ensuring communities thrive. FOTH 2025 partners—including United Philanthropy Forum’s Deborah Aubert Thomas, Independent Sector’s Dr. Akilah Massey, and Council on Foundations’ Kathleen Enright—opened the conference by sharing personal philanthropy stories and local giving experiences shaped by family, community, and mentors.
Philanthropy is a unique aspect of our American history, culture, and patriotism that builds and sustains a civil society, allowing everyone to thrive, regardless of where they live in the United States. Currently, philanthropy is under attack. Today, philanthropy—especially lean funders—is often misunderstood by policymakers, making advocacy more important than ever. With so much at stake for our communities, neighbors, and nonprofit partners, here are five key takeaways from funders, nonprofit leaders, and policymakers at FOTH.
1. Federal Funding Freezes Are Hurting Communities
Federal funding freezes and changes are hitting nonprofits hard. Many have already spent promised funds and are awaiting reimbursements, forcing them to lay off staff, halt programs, and break commitments. The disruption extends to critical services—water infrastructure, Head Start, workforce training, and agricultural support for food security—impacting communities, livelihoods, and critical infrastructure nationwide.
2. Your Voice Matters
Lawmakers on both sides of the aisle are concerned about the freezes and cuts. The U.S. House and Senate members are urging funders and nonprofits to share how these freezes are affecting their communities. Exponent Philanthropy members can play a key role by amplifying grantee voices and advocating for solutions.
From Appalachia to Alaska, nonprofits need support. As referenced in our Catalytic Leadership in Philanthropy mindset, the role of advocacy is fundamental for all lean funders; therefore, call, email, and meet with your grantees to understand their needs, gather their stories, and share those with your congressional delegations. Contact your U.S. federal representatives today—reach out to their local or D.C. offices, share the facts and grantee stories, and push for action.
Find your House and Senate members here.
3. Protect Philanthropy’s Role in Our Communities
Many policymakers misunderstand philanthropy, sometimes viewing it through a political lens or due to false narratives. But philanthropy is apolitical—driven by individuals, families, and businesses committed to improving communities. In the face of false narratives and misunderstandings, philanthropy needs to clearly communicate our value and impact while safeguarding our role in supporting our communities. To counter misconceptions and highlight philanthropy’s impact, we must build strong, bipartisan relationships with lawmakers.
How to Engage Policymakers:
- Know your audience – Understand your congressional representatives’ priorities (e.g., education, jobs, economic development, etc.) and connect your work to their focus.
- Reach out – Contact your House and Senate representatives to share your impact and advocate for philanthropy’s role.
- Host site visits – Invite lawmakers to showcase the impact of your grantmaking and grantee partner’s work (e.g., food pantries, after-school programs, libraries, clinics).
- Engage at events – Include congressional representatives in grantee luncheons or celebrations to see the work of grantee partners in action.
- Stay connected – Maintain regular communication with both D.C. and district staff, sharing updates and reports on at least a quarterly basis.
Find your House and Senate representatives here.
4. Funders Should Promote Their Grantees’ Impact
Share how your grantee partners and grantmaking benefit the community. As one FOTH speaker said, “It’s okay for funders to brag about your grantees’ impact.” Whether in D.C. or at a local congressional office, take the time to highlight your work, its impact, and why it must continue.
5. Be Proactive in Advocating for Nonprofits
As Congress debates tax policies, nonprofits face potential threats and policy makers often overlook the impact policies have on nonprofits. Board members, staff, donors, and corporate funders must inform lawmakers about the sector’s critical role in community well-being now. Being proactive about it keeps policy makers informed and aware.
How to Engage:
- Speak up locally and in D.C. Contact Congress early to ensure they understand how policies affect nonprofits and your community.
- Educate policymakers. Many congressional staffers overlook nonprofits’ impact. Calls, emails, and visits can prevent harmful policies.
- Reigniting America’s generosity by supporting the Charitable Act (H.R.801/S.317). Expanding charitable giving incentives is crucial as donations decline. Urge your representatives to co-sponsor and vote for this bipartisan bill.
- Be a resource. Share insights on community needs, convene stakeholders, and share how your foundation’s work overlaps with a lawmakers’ priorities to foster collaboration.
Take action today to protect nonprofits and philanthropy’s impact for civil society and the benefit of our communities.
Know the Difference: Education, Awareness, and Lobbying
As highlighted at Foundations on the Hill and through Exponent Philanthropy’s Catalytic Leadership in Philanthropy framework, lean funders can connect, collaborate, champion, and advocate for their communities. Public policy engagement requires strategic convening and collaboration.
Lean funders can educate, raise awareness, and, in some cases, lobby Congress on issues affecting their grantee partners and communities. However, your role in advocacy may depend on whether you are a public or private funder. Here are three key action items to help you navigate advocacy effectively.
For Public Grantmaking Funders
Public charities and funders—such as community foundations, donor-advised funds, some healthcare conversion foundations, and individual philanthropists—can engage in advocacy in several ways:
- Educating: Inform your members of Congress about the nonprofit and philanthropy sectors’ role in strengthening communities and driving economic development.
- Building Awareness: Highlight the work of your grantees by engaging congressional staff, inviting them to grantee events, hosting roundtables, and explaining how policy decisions impact communities.
- Lobbying: Advocate for or against legislation by directly urging Congress to support beneficial policies or oppose harmful proposals, explaining their impact on local communities, neighbors, and the nonprofits working for a thriving community.
Public funders have a powerful voice—use it to strengthen philanthropy and support your communities.
For Private Grantmaking Funders
Private funders—such as family, independent, and some healthcare conversion foundations—can engage in advocacy through:
- Educating: Build relationships with your U.S. House and Senate representatives. Share updates on your work, grantee achievements, and how federal policies impact your community. Call or visit their offices—locally or in D.C.—to highlight philanthropy’s role in community well-being.
- Building Awareness: Elevate your grantee partners by informing policymakers about their impact. Provide facts and stories to counter misinformation, ensuring lawmakers understand how their decisions affect local communities. This is advocacy, not lobbying.
- Lobbying: Private foundations cannot lobby but may engage in advocacy when legislation affects their tax-exempt status or operations (self-defense exception). For example, past efforts successfully simplified the foundation excise tax in 2017.
Understanding these distinctions helps private funders advocate effectively while staying within legal guidelines.
Philanthropy’s Voice is Essential
Advocacy is a powerful tool for funders to protect and strengthen the nonprofit sector. Whether through education, awareness-building, or lobbying, every funder has a role in ensuring philanthropy continues to serve communities effectively. By engaging decision-makers and the public, funders can highlight philanthropy’s impact, correct misconceptions, and push for policies that support—not hinder—nonprofits. With funding uncertainties, tax policy debates, and shifting regulations, this work is more important than ever. Even in times of uncertainty, philanthropy must remain proactive. By amplifying grantee voices and keeping key policymakers informed, funders can help shape a future where communities continue to thrive. We must all do our part!
Resources to Start Your Advocacy Journey
If you’re ready to explore advocacy, check out our Advocacy Field Guide for Lean Funders. This practical resource outlines seven steps to funding and engaging in policy, with real examples from lean funders. Learn more here »
Our Funding and Engaging in Advocacy primer provides a clear, practical guide to funding and participating in advocacy while staying within legal guidelines. It covers key questions, common misconceptions, and real examples to help you get started. Get it here »
About the Author
Paul D. Daugherty is the CEO of Exponent Philanthropy, the country’s largest association of funders and the only one dedicated to serving foundations, philanthropic families, and individual donors who are lean, but have a mighty impact. As someone who has served in different philanthropic roles for nearly 25 years, Paul recognizes the influence and importance of funders, foundations, and private giving of all sizes.