Nonprofit Lobbying and Advocacy 101: You Can Do It! Nona Randois California Director Alliance for Justice August 24, 2017
For free coaching about laws impacting nonprofit advocacy:
advocacy@afj.org 866.675.6229
For free tools, fact sheets, and publications
www.bolderadvocacy.org
@AFJBeBold @NonaAFJ BolderAdvocacy
If there were no budget limits‌ No rules or laws holding you back‌
What would you do to strengthen your community? And how would you do it?
Brainstorm
1. Understand 501(c)(3) lobbying limits 2. Learn a simple step a 501(c)(3) can take to maximize the amount of lobbying it can do 3. Recognize when an activity might constitute lobbying under IRS rules
4. Understand how to track lobbying
Objectives
What is ADVOCACY?
Nonprofits can and should advocate for policy change!
TAX-EXEMPT STATUS of NONPROFITS
501(c)(3) Public Charity
501(c)(4) 501(c)(5) 501(c)(6)
Examples
Tax Treatment
Lobbying Activities
Electoral Activities
Tax-Exempt Contributions Tax-Deductible
Tax-Exempt
Limited
Unlimited
Cannot support or oppose a candidate for office
Secondary activity Must follow election laws
Organize Communities
Educate Legislators
Educate Public
Nonpartisan Voter Ed.
PARTISAN POLITICAL
IRS Lobbying Exceptions
Educational Conferences
LOBBYING
Encourage Voting
Change Corporate Behavior
Influence Regulations
Litigation Research
Leadership Training
Avenues for ADVOCACY
Unofficial Working Definition of LOBBYING
Trying to influence legislation
Public Charities can and should • Must stay within IRS limits ▪ Insubstantial part test OR ▪ 501(h) expenditure test
• Must have unrestricted funds • Must track and report
LOBBY
How much LOBBYING?
Insubstantial Part Test (Required for Houses of Worship) 1.
Default test for all 501(c)(3)s
2.
Lobbying is “insubstantial part” of organization’s activities, but what is “insubstantial”?
3.
No clear definition of lobbying or lobbying exceptions
4.
Based on paid and unpaid activities
OR 501(h) Expenditure Test 1.
One-time election – IRS Form 5768
2.
Clear definition of lobbying
3.
Dollar-based formula to calculate lobbying limits
4.
Only spending counts, not volunteer time
LOBBYING LIMITS under 501(h)
“Exempt Purpose Annual Expenditures 1. Calculate organization’s (for most organizations) Expenditures ” 2. Overall lobbying limit ANNUAL EXPENDITURES
OVERALL LOBBYING LIMIT
$500,000 or less
20%
$500,000 to $1 million
$100,000 +15% of excess over $500,000
Use our online calculator at www.bolderadvocacy.org $1 million to $1.5 million
$175,000 +10% of excess over $1 million
$1.5 million to $17 million
$225,000 + 5% of excess over $1.5 million
Over $17 million
$1,000,000
3. Grassroots lobbying limit is 25% of overall limit
TOTAL LOBBYING LIMITS for 501(c)(3)s making the 501(h) election with annual expenditures of $1,000,000 Direct
Direct lobbying + Grassroots lobbying= Overall lobbying limit
Grassroots
Community services, training, public education, non-lobbying advocacy
Overall Lobbying Limit $175,000
Grassroots Lobbying Limit
$43,750
LOBBYING Definitions
Contacting legislators to propose, support, or oppose legislation or budget Urging the public to contact legislators to propose, support, or oppose legislation or budget Advocating the adoption or rejection of legislation
What is LOBBYING under the Insubstantial Part Test?
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
U.S. Legislators
Communication Legislator Expresses a view about specific legislation
State Legislators
GRASSROOTS
Communication General public Expresses a view about specific legislation Call to action
County Board of Supervisors, City Council
And‌
DIRECT
And their staff…
Communication Legislator Expresses a view about specific legislation
GRASSROOTS
Communication General public Expresses a view about specific legislation Call to action
And…
DIRECT Communication Legislator Expresses a view about specific legislation
GRASSROOTS
Communication
Ballot Measures ▪
Constitutional amendments
▪
Bond measures
General public Expresses a view about specific legislation Call to action
The general public are “lawmakers” when voting on ballot measures, so ballot measure advocacy counts as direct lobbying.
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 government official who participates in the formulation of legislation
DIRECT Communication Legislator Expresses a view about specific legislation
GRASSROOTS
Communication General public Expresses a view about specific legislation Call to action
When is Honolulu Mayor Kirk Caldwell a “legislator”?
DIRECT
NOT “LEGISLATORS”
Communication Legislator Expresses a view about specific legislation
GRASSROOTS
Communication General public Expresses a view about specific legislation Call to action
▪ ▪ ▪ ▪ ▪ ▪
School boards Planning commissions Zoning commissions Housing authorities Water districts Other “special purpose bodies”
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
Preparation for lobbying counts as lobbying
NOT LEGISLATION Regulations
Executive Orders
Enforcement of Existing Laws
Litigation
IRS Lobbying or not? ▪ Asking the City Council to implement rent control: LOBBYING, under IRS rules ▪ Meeting with the local school board to ask them adopt healthier school lunches: NOT LOBBYING under IRS rules ▪ Urging your city’s police chief to 1) sign a letter to the County Board of Supervisors supporting increased funding for your after school program and 2) stop reporting undocumented immigrants to ICE: Partially LOBBYING and Partially NOT LOBBYING under IRS rules
▪ Educating legislators about public opinion on climate change and the need for government to act (with no pending or proposed legislation): NOT LOBBYING under IRS Rules
Grassroots Lobbying
DIRECT Communication Legislator Expresses a view about specific legislation
GRASSROOTS
Communication General public Expresses a view about specific legislation Call to action
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 CONTACT legislator(s) or PROVIDING CONTACT INFO, like phone number, e-mail address, mailing address, and/or other contact info of legislator(s) or PROVIDING MECHANISM to enable communication with legislator(s) or IDENTIFYING legislator(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
ACTION ALERT: SUPPORT GOODWIN LIU’S NOMINATION We expect the Senate to vote on whether Goodwin Liu's nomination to the 9th Circuit will move forward by 2 PM EST TOMORROW. Senators who are undecided on Liu’s nomination include: Scott Brown Tom Coburn Tim Coburn Susan Collins Mary Landrieu Olympia Snowe
Bill Nelson Lisa Murkowski Claire McCaskill Joe Manchi Manchin
DIRECT Communication Legislator Expresses a view about specific legislation
GRASSROOTS
Communication
Under 501(h), If a communication does NOT have one of the four kinds of Calls to Action, it’s
General public Expresses a view about specific legislation Call to action
Not Lobbying
TOTAL LOBBYING LIMITS for 501(c)(3)s making the 501(h) election with annual expenditures of $1,000,000 Direct
Direct lobbying + Grassroots lobbying= Overall lobbying limit
Grassroots
Community services, training, public education, non-lobbying advocacy
Overall Lobbying Limit $175,000
Grassroots Lobbying Limit
$43,750
DIRECT Communication With a legislator Expressing a view about specific legislation
GRASSROOTS
Communication General public Expresses a view about specific legislation Call to action
Lobbying
DIRECT Communication Legislator Expresses a view about specific legislation
GRASSROOTS
Take Action!
Communication General public Expresses a view about specific legislation Call to action
Not Lobbying
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
MUST Invitation in Writing on Behalf of a Committee Available to All Members of Committee
MAY Express a View on Specific Legislation
Technical ASSISTANCE
Annual lobbying caps for 501(c)(3)s
Disclose statelevel lobbying
Disclose local lobbying
Disclose federal lobbying
Lobbying LIMITS vs. DISCLOSURE
IRS Lobbying KEY POINTS: ▪
Public charities can and should lobby; they just have to stay within their annual lobbying limits.
▪
Most public charities will benefit from using the “501(h) expenditure test” to determine their lobbying limits.
▪
Many activities that influence policy will not even meet the definition of “lobbying.”
▪
Contact Alliance for Justice for help!
For more information:
QUESTIONS?
For free coaching about laws impacting nonprofit advocacy:
advocacy@afj.org 866.675.6229
For free tools, fact sheets, and publications
www.bolderadvocacy.org
@AFJBeBold @NonaAFJ BolderAdvocacy