Why Economics is your friend as a nonprofit advocate
By Kevin Dean, President & CEO
Tennessee Nonprofit Network
Last year, at a conference out of town, I shared coffee with an old friend as she recounted her incredible public policy journey. She'd been pushing for a domestic violence bill in her state legislature for three years. It felt like common sense - legislation to punish abusers and potentially protect victims. Yet, it languished in subcommittee for years. After repeated failures, her organization made a strategic shift. In year four, they pivoted their focus. Instead of the human cost, they addressed the economic impact: the additional litigation, unpaid medical bills, and strain on police and fire resources. This "more money, more problems" approach resonated. Once the focus shifted to the financial burden on taxpayers, the bill zipped through subcommittee and sailed through both House and Senate that year.
This is not a unique story. This is an example of how many of us in nonprofit public policy work have to get things done. “We tend to think our legislators are like our donors, but they don’t respond to the same things. We have to continually tell our story in a different way…so that they hear it,” she said to me.
Nonprofits excel at highlighting the human cost of social issues. But when advocating for policy changes, appealing solely to emotions might not be enough. Policymakers often need a clear understanding of the financial implications – how the proposed change will impact budgets, generate revenue, or save costs. This doesn’t necessarily make them heartless - it’s part of their job. Here's how to build a robust economic case for your policy goals:
1. Identify the Economic Burden:
Quantify the Problem: Start by defining the social issue your policy addresses. Then, translate its impact into hard numbers. For instance, if advocating for affordable housing, present data on the cost of homelessness to the healthcare system.
Focus on Long-Term Costs: Don't just highlight immediate costs borne by individuals. Show how the current situation leads to long-term expenses for government programs. For example, research the impact of inadequate early childhood education on future crime rates and incarceration costs.
2. Project the Economic Benefits of Your Policy:
Cost-Savings Analysis: Show how your policy will save the government money. Analyze how proposed investments in preventative measures (like mental health programs) lead to long-term savings on healthcare costs.
Revenue Generation Potential: Explore if your policy can create new revenue streams. For example, a policy on environmental sustainability might incentivize renewable energy sources, creating new jobs and tax revenue.
3. Utilize Economic Impact Studies:
Research Existing Studies: Look for existing economic studies or reports that quantify the financial impacts of similar policies implemented in other regions.
Commission Your Own Study: If resources allow, consider commissioning a cost-benefit analysis specific to your policy proposal. Partner with universities or research institutions for expertise.
4. Tailor Your Message to Your Audience:
Know Your Stakeholders: Identify the policymakers you need to convince. Research their priorities and tailor your case accordingly. For example, if addressing a budget committee, emphasize cost savings.
Frame Your Argument Strategically: Use economic language they understand. Translate social impact into cost-benefit ratios, return on investment (ROI), and job creation figures.
5. Consider the Distributional Impact:
Who Benefits, Who Pays? Be transparent about who might face initial costs for policy implementation. Outline plans for mitigating those costs or ensuring a fair distribution of benefits.
Long-Term Equity: Show how your policy promotes long-term economic equality. For instance, a policy on affordable childcare could enable more parents to join the workforce, boosting the economy.
Remember:
While emotions can be powerful motivators, a data-driven economic case strengthens your advocacy.
Frame your argument within the existing economic framework policymakers understand.
Use clear, concise language with compelling statistics and visuals (charts, graphs) to present your findings.
By building a sound economic case, you can effectively compete for attention and resources alongside other policy priorities. This approach, combined with your organization's human-centered mission and expertise, will significantly increase the success rate of your policy advocacy efforts. We all have big hearts in the nonprofit sector, but sometimes a lot of math helps get our policy changes across the finish line!