Alliance for Justice - How Non-Profits Can Engage in Advocacy 8.28.14

How can 501(c)(3) organizations engage in LOBBYING and

ADVOCACY?

 Nayantara Mehta Alliance for Justice

AGENDA

1. Comparing 501(c)(3)s and 501(c)(4)s

2. What is advocacy?

3. How much lobbying can a 501(c)(3) do?

4. What is lobbying?

5. Keeping track of lobbying

Comparing NONPROFITS

501(c)(3) 501(c)(4)Political

Organizations

Examples

Tax Treatment

LobbyingActivities

ElectoralActivities

Contributions tax-deductible

Tax-Exempt

Private Foundation grants

Tax-Exempt Tax-Exempt

Limited Unlimited Rare and usuallytaxable

Cannot support or oppose a candidate

for office

Usually, sole activity

Secondary activity

Follow federal and state election law

IndependentEmily’s List

Connected/SSFLCV PAC

What is ADVOCACY?

Organize Communities

Educate Public

Educate Legislators

Nonpartisan Voter Ed.

PARTISAN POLITICAL

LOBBYING

Encourage Voting

Educational Conferences

Research

Lobbying Exceptions

Change Corporate Behavior

Skills Training

Regulatory Efforts

Litigation

Avenues for ADVOCACY

Advocacy Capacity Tool (ACT) www.BolderAdvocacy.org/ACT

Nonprofits can and should

ADVOCATE & LOBBY forPOLICY CHANGE!

How much LOBBYING?

How Much LOBBYING?

INSUBSTANTIAL PART TEST

1. Lobbying is an “insubstantial part” of the organization’s activities, no clear limits or definitions

2. Default test

or

501(H) EXPENDITURE TEST

1. One-time election – IRS Form 5768

2. Definitions of lobbying

3. Dollar based limits

4. Expenditures only

$62,500

$250,000

Chart Title

Education & Non-Lobbying

Advocacy

TOTAL LOBBYING LIMITSfor a 501(c)(3) using the 501(h) election, with annual expenditures of $2 million

Overall Lobbying Limit

Grassroots Lobbying Limit

Grassroots

Direct

LOBBYING Definitions

LOBBYING for organizations using the Insubstantial Part Test:

- Contacting legislators to propose, support, or oppose legislation

- Urging the public to contact legislators to propose, support, or oppose legislation

- Advocating the adoption or rejection of legislation

Attempting to influence LEGISLATION

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

LOBBYING for organizations using 501(h)

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

Federal Members of Congress

State State Legislature

Local City Council, County Board of

Supervisors

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

President, governor, mayor or other executive official who participates in the formulation of legislation

SPECIAL “LEGISLATOR” RULEMembers of the general public are “legislators”

Ballot Measures

Ballot initiatives

Referenda

Constitutional amendments

Bond measures

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

NOT “LEGISLATORS”

Special Purpose Boards:

School boards Planning

commissions Zoning

commissions Water districts

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

Regulations

Executive Orders

Enforcement of Existing Laws

Litigation

NOT LEGISLATION

LOBBYING or NOT? Urging city council members to pass local living wage

ordinance:

Meeting with Planning Commission to oppose permit for expansion of oil refinery:

Urging DHS Secretary to support the DREAM Act and to reform immigration enforcement practices by DHS:

Educating legislators about public opinion on climate change and need for government to act (with no pending or proposed legislation):

LOBBYING

NOT LOBBYING

PARTIALLY LOBBYING & PARTIALLY NOT LOBBYING

NOT LOBBYING

CALL TO ACTION

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

TELLING TO CONTACTlegislator(s)

PROVIDING ADDRESS,telephone number, and/or other

contact information of legislator(s)

PROVIDING MECHANISMto enable communication

with legislator(s)

IDENTIFYINGlegislator(s)

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action Not Lobbying

Not Calls to Action: “Learn more” “Take action” “Support our efforts” “Get involved”

DIRECT

Communication

With a legislator

Expressing a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

DIRECT

Communication

With a legislator

Expressing a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

Nonpartisan analysis, study, or research

Request for technical assistance

Self defense

Examinations and discussions of broad social, economic, and similar problems

Lobbying EXCEPTIONS

MUST

Full and Fair Discussion

Broadly Disseminated

MAY

Express a View

Indirect Call to Action

Subsequent Grassroots

Lobbying limited

Nonpartisan ANALYSIS

Request for Technical ASSISTANCE

MUST

Invitation in Writing on behalf

of Committee

Available to all members of Committee

MAY

Express a View on Specific Legislation

REMEMBER:

Nonprofits can and should lobby; 501(c)(3)s just have to stay within their annual lobbying limits

Using the 501(h) option will simplify lobbying planning and reporting

Only what meets the definition of lobbying counts toward a 501(c)(3)’s lobbying limit

Track staff time spent on lobbying in order to report to IRS annually

How to KEEP TRACK

REASONABLEallocation

501(h)

Direct Costs

Staff Time

Overhead

INSUBSTANTIAL PART

Volunteers

Activities Specified on Form 990

501(h)

Direct Costs

Staff Time

Overhead

INSUBSTANTIAL PART

Volunteers

Activities Specified on Form 990

$15,000

Overhead

10% Direct

Lobbying

5% Grassroots Lobbying

Cost Center Direct Grassroots

Direct Costs $60 $100

Staff Time $750 $250

Overhead $1500 $750

Total Expenditures

$2310 $1100

Total Lobbying EXPENDITURES

501(h)

Direct Costs

Staff Time

Overhead

INSUBSTANTIAL PART

Volunteers

Activities Specified on Form 990 + a

“detailed description”

For more information:

QUESTIONS?

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