501(c)(4) vs. 501(c)(3) spending from our Fellows’ organizations
Impact Fellows Action Fund invested $2.7M in organizations across 13 states where our Fellows’ protected–or added–state funds of $24.7B for young children and families. That’s an ROI of 9,148%! With substantially more 501(c)(4) investments, organizations across the nation can make an even greater impact and further advocate for young children and families.
Stand for Children Arizona ≈8:13
“While we have many small dollar individual donors (thanks to an active action taking network!), our 501(c)(4) budget is primarily supported by three foundations/collaborative funds including Impact Fellows Action Fund.”
Rebecca Gau, Executive Director
Healthier Colorado 1:6
“Impact Fellows was our only significant 501(c)(4) institutional funder thus far in 2023.”
Brieanna Bryant, Development Manager
Maryland Rise
Maryland Rise worked diligently to pass paid family leave in Maryland and was able to do so with ~$330,000 of raised funds going toward 501(c)(4) work. They are primary funded by the Impact Project.
TakeAction Minnesota 2:3
“Without your [Impact Fellows Action Fund’s] support, we would have had $1 [of] 501(c)(4) [dollars] for every $7 in 501(c)(3).”
Elianne Farhat, Executive Director
NMVC Action Fund (New Mexico) ≈1:10
NMVC Action Fund raised their 501(c)(4) to 501(c)(3) funds from 1:16 to 1:10 over two years with $300k going toward 501(c)(4) advocacy against $3M for 501(c)(3) advocacy.
Alliance for Quality Education (New York) ≈1:3
As to why there’s a big disparity, Jasmine Gripper, Executive Director of AQENY says, “501(c)(4) funding is harder to raise, as foundations are only allowed to give to 501(c)(3) organizations and c4 donations are not tax deductible, so individual donors tend to give to 501(c)(3)s instead of the 501(c)(4)s.”
Meanwhile, some entitles that can donate to c4s don’t fully understand the importance and distinction of giving 501(c)(4) funding, so they end up only giving 501(c)(3) funds instead.
Smart Start Advocates (North Carolina) 1:4
State funds can’t be used for advocacy so private funds fuel Smart Start Advocates’ 501(c)(4) advocacy.
Groundwork Ohio 1:10
With a 1:10 funding ratio, Groundwork Ohio used aggressive digital advertising around key issues to acquire over $250 million in new investments for young children and families, though this falls incredibly short of the half a billion dollars Groundwork Ohio advocated to protect. With more 501(c)(4) funds, Groundwork Ohio can expand their 501(c)(4) activities to achieve even greater results.
Family Forward Action (Oregon) ≈1:4
Roughly a quarter of Family Forward Action’s total funding is for 501(c)(4) activity, and they have to carefully limit their use of those funds and activity to childcare advocacy work.
Children First (Pennsylvania) ≈8:85
The majority of Children’s First’s funding comes from private foundations with $270k going toward 501(c)(4) work and $1M going toward 501(c)(3) work.
Tennesseans for Quality Early Education 1:6
A bulk of TQEE’s 501(c)(4) funds come from a single multi-year grant that ends in 2023.
“Without IFAF, the ratio would have been 1:7.”
Blair Tylor, President & CEO, TQEE
Let’s Grow Kids Action Network (Vermont) 1:13
Despite a 1:13 ratio of 501(c)(4) to 501(c)(3) funds, Let’s Grow Kids Action Network worked tirelessly to successfully pass Vermont’s 2023 childcare bill, one of the most expansive in the nation. More funds = even greater impact.
“Gifts of 5- and 6-figures from individuals and organizations like Impact Fellows Action Fund make up the majority of the Action Network’s revenue.”
Hannah Burnett, Director of Campaign Giving & Employer Engagement
Virginia Promise in Action 1:10
“Our spend in the form of direct contributions this spring/summer in this election year (only possible via rare/precious c4 dollars and IFAF’s generosity) holds greater potential for impact on our goals than any other activity or expenditure (even at 10x the amount) we’ve been able to make.”
-Kathy Glazer, President
