Funding and Engaging in Advocacy Social Equity Funders Meeting Nona Randois Southern California Program Director Alliance for Justice June 8, 2015
1. Introductions, small group exercise 2. Why Advocacy? 3. Overview of Public and Private Foundations 4. What is advocacy? What is lobbying? 5. How can foundations engage in and support advocacy? 6. Tools for supporting advocacy 7. Review and final reflections AGENDA
INTRODUCTION
What ADVOCACY work do you do?
Why ADVOCACY?
COALITIONS provide flexibility
Comparing NONPROFITS
501(c)(3) Private Foundation 501(c)(3) Public Foundation/ Charity 501(c)(4) Examples Tax Treatment Tax-Exempt Contributions tax-deductible Tax-Exempt Contributions tax-deductible Tax-Exempt Lobbying Activities PROHIBITED Tax on foundation & managers LIMITED Insubstantial Part or 501(h) UNLIMITED Electoral Activities Cannot support or oppose a candidate for office Cannot support or oppose a candidate for office Secondary activity Follow federal and state election law
What is ADVOCACY?
Organizing Educate Legislators Get to Know Legislators Public Education PARTISAN POLITICAL Educational Conferences Nonpartisan Voter Ed. Lobbying Exceptions LOBBYING Organize a Rally Regulatory Efforts Litigation Research Training Avenues for ADVOCACY
What is LOBBYING?
INSUBSTANTIAL PART TEST 1. Default test 2. What is insubstantial? 3. Lobbying not defined 4. Activities-based 5. Penalty OR 501(H) EXPENDITURE TEST 1. One-time election IRS Form 5768 2. Dollar-based limits 3. Expenditures only 4. Definition of lobbying 5. Penalty less severe 6. Not every organization can elect
LOBBYING LIMITS under 501(h)
Exempt Purpose 1. Calculate organization s Expenditures 2. Overall lobbying limit ANNUAL EXPENDITURES $500,000 or less 20% OVERALL LOBBYING LIMIT $500,000 to $1 million $100,000 +15% of excess over Use our online calculator $500,000 $1 million at to $1.5 million $175,000 +10% of excess over www.bolderadvocacy.org $1 million $1.5 million to $17 million $225,000 + 5% of excess over $1.5 million Over $17 million $1,000,000 Annual Expenditures (for most organizations) 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 $500,000 Direct Grassroots Education & Non-Lobbying Advocacy Overall Lobbying Limit Grassroots Lobbying Limit $100,000 $25,000
DIRECT Legislator Expresses a view about specific GRASSROOTS What is LOBBYING? General public Expresses a view about specific Call to action
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action
DIRECT Federal Members of Congress Legislator Expresses a view about specific State State Legislature GRASSROOTS General public Expresses a view about specific Call to action Local City Council, County Board of Supervisors International Legislative Bodies (e.g., Parliament)
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action President, governor, mayor or other executive official who participates in the formulation of
DIRECT Legislator When is Secretary of Homeland Security Jeh Johnson a legislator? Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action
School Boards Zoning Board Housing Authority Other Special Purpose Boards NOT Legislators
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action SPECIAL LEGISLATOR RULE
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action
Regulations Executive Orders Enforcement of Existing Laws Litigation NOT Specific Legislation
DIRECT Legislator Expresses a view about specific GRASSROOTS CALL TO ACTION General public Expresses a view about specific Call to action
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action TELLING TO CONTACT legislator(s) PROVIDING ADDRESS, telephone number, and/or other contact information of legislator(s) PROVIDING MECHANISM to enable communication with legislator(s) IDENTIFYING legislator(s)
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific Call to action
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Expresses a view about specific ACTION ALERT: SUPPORT GOODWIN LIU S NOMINATION We expect the Senate to vote on whether Goodwin Liu's nomination to the 9 th Circuit will move forward by 2 PM EST TOMORROW. Senators who are undecided on Liu s nomination include: Scott Brown Bill Bill Nelson Tom Tim TomCoburn Lisa Lisa Murkowski Susan Collins Claire McCaskill Mary Mary Landrieu Joe Joe Manchin Olympia Snowe Call to action
DIRECT Legislator Expresses a view about specific GRASSROOTS General public Not Calls to Action: Learn more Take action Support our efforts Get involved Expresses a view about specific Call to action Not Lobbying
MAXIMIZING Influence Within Lobbying Limits
No Call to Action Leaving off the call to action in what would otherwise be grassroots lobbying Member s Treated as direct rather than grassroots lobbying Administrative Advocacy Influencing regulations, executive orders, enforcement of laws Legal Advocacy Using the courts to influence policy Lobbying Exceptions Four exceptions from the definition of lobbying MAXIMIZING Influence Within Lobbying Limits
DIRECT With a legislator Expressing a view about specific GRASSROOTS General public Expresses a view about specific Call to action
DIRECT With a legislator Expressing a view about specific GRASSROOTS General public Expresses a view about specific Call to action
RAISING PRESUMPTION Paid MASS MEDIA communication & 2 Weeks of VOTE & HIGHLY Publicized & REFERS to and REFLECTS VIEW or ENCOURAGES contact with legislator on subject OVERCOMING PRESUMPTION REGULARLY Made by organization or SERIES of ads planned in advance or CUSTOMARY Course of Business or Timing UNRELATED to MASS MEDIA rule
No Call to Action Leaving off the call to action in what would otherwise be grassroots lobbying Member s Treated as direct rather than grassroots lobbying Administrative Advocacy Influencing regulations, executive orders, enforcement of laws Legal Advocacy Using the courts to influence policy Lobbying Exceptions Four exceptions from the definition of lobbying MAXIMIZING Influence Within Lobbying Limits
DIRECT With a legislator Members Only Expressing a view about specific GRASSROOTS General public Expresses a view about specific Call to action
DIRECT With a legislator Members Only Expressing a view about specific GRASSROOTS General public Expresses a view about specific Call to action
No Call to Action Leaving off the call to action in what would otherwise be grassroots lobbying Member s Treated as direct rather than grassroots lobbying Administrative Advocacy Influencing regulations, executive orders, enforcement of laws Legal Advocacy Using the courts to influence policy Lobbying Exceptions Four exceptions from the definition of lobbying MAXIMIZING Influence Within Lobbying Limits
ADMINISTRATIVE Advocacy
EXECUTIVE ORDERS
ENFORCEMENT or IMPLEMENTATION of Laws
No Call to Action Leaving off the call to action in what would otherwise be grassroots lobbying Member s Treated as direct rather than grassroots lobbying Administrative Advocacy Influencing regulations, executive orders, enforcement of laws Legal Advocacy Using the courts to influence policy Lobbying Exceptions Four exceptions from the definition of lobbying MAXIMIZING Influence Within Lobbying Limits
LEGAL Advocacy
No Call to Action Leaving off the call to action in what would otherwise be grassroots lobbying Member s Treated as direct rather than grassroots lobbying Administrative Advocacy Influencing regulations, executive orders, enforcement of laws Legal Advocacy Using the courts to influence policy Lobbying Exceptions Four exceptions from the definition of lobbying MAXIMIZING Influence Within Lobbying Limits
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 Committee Available to all members of Committee MAY Express a View on Specific Legislation Technical ASSISTANCE
MUST RELATE TO Powers and Duties Tax-Exempt Status Deductibility of Contributions SHOULD Consult with Attorney Self-DEFENSE
NO SPECIFIC LEGISLATION Blue Ribbon Panel Annual Reports Early Stages of Policy Development NO CALL TO ACTION Does not Include Call to Action Examinations & DISCUSSIONS
Limits lobbying by 501(c)(3)s at all levels of government Disclosure of State lobbying Disclosure of City lobbying Lobbying LIMITS vs DISCLOSURE
Cathedral City Sacramento Carson Santa Clara County Irvine Santa Rosa LA City, County, LAUSD & LAMTA San Francisco Malibu San Jose Milpitas SD City & County & Airport Oakland Santa Clarita Richmond West Hollywood LOCAL Lobbying Disclosure Laws
How can foundations engage in and support ADVOCACY?
What can I do? What should I do?
Capacity Builder Build capacity of grantees to advocate and lobby General Support(er) Funding grantees that advocate through general support Responder Don t proactively initiative policy change, but prepared to respond Convener Bring nonprofits and policy leaders to the table to find solutions Fund Specific Projects Fund lobbying or non-lobbying portions of advocacy projects Be an Advocate Advocate LOUDLY or quietly for your policy agenda Be a Lobbyist Public charitable foundations often want to lobby for policy change Advocacy ROLES
Public foundations may fund advocacy, including lobbying A grant earmarked for lobbying counts against a public foundation s lobbying limits Private foundations may fund advocacy, but cannot earmark grants for lobbying Earmark: To designate for a specific purpose
Earmarked for Lobbying? Private foundations Public charities / foundations
Private foundations should not EARMARK grants for lobbying but Private foundations may FUND grantees that lobby $$$ General Support Grants Specific Project Grants
Foundation does not EARMARK grant and foundation is not legally responsible for its grantee s lobbying GENERAL SUPPORT Grant Safe Harbor
SPECIFIC PROJECT Grants Foundation grant Specific project s non-lobbying component
SPECIFIC PROJECT Grant Example $100,000 Project Budget: Project Budget Lobbying $40,000 Non-lobbying $60,000 $50,000 grant from Foundation 1 $50,000 grant from Foundation 2 $50,000 < $60,000 No taxable/lobbying expenditure $50,000 < $60,000 No taxable/lobbying expenditure
Private foundation grants EARMARKED for voter registration drives must meet certain requirements Funding VOTER REGISTRATION DRIVES
Project funded must be: Sponsored by a 501(c)(3) organization Nonpartisan Not confined to one specific election cycle Conducted in 5 or more states Run by a group that meets additional rules related to the diversity of its funding Funding VOTER REGISTRATION DRIVES
Restricting public charities from lobbying is not necessary For sample grant agreement language
Grant AGREEMENTS Restricting public charity grantees from lobbying is not necessary State whether specific project grant or general support grant State that the grant is not earmarked for lobbying
Non-lobbying Advocacy Lobbying Electoral Fund Public May earmark grants May earmark grants (within limits) May fund nonpartisan activities Private May earmark grants * May not earmark grants * Safe harbors for general support & specific project grants * May fund nonpartisan activities * Special rules apply to earmarked grants for voter registration Engage in Public Private Unlimited Limited * No support for / opposition to candidates * Nonpartisan activities OK Unlimited Taxable expenditure * No support for / opposition to candidates * Nonpartisan activities OK Foundation Advocacy
TOOLS for supporting advocacy
Learn & Communicate Effective Advocacy Assess Groups Strengths & Gaps Plan Advocacy Work Support and Grow Advocacy Groups ASSESSING Advocacy Capacity
Long term Outside controls Credit Measuring influence Complex systems Advocacy Evaluation CHALLENGES
Adaptability Advocacy Capacity Incremental Progress Contribution Tell the Story & Measure Advocacy Evaluation PRINCIPLES
I Advocacy Goals, Plans & Strategies Preparation Agenda Plans, Strategies & Adaptability III Advocacy Avenues Administrative Legislative Ballot Measures, Referenda & Initiatives Electoral Litigation II Conducting Advocacy Research & Analysis Field Operation Advocacy Partners & Coalitions Messaging Media Relations Influencing Decision Makers IV Organizational Operations to Sustain Advocacy Organizational Commitment Funding Advocacy Decision-Making Structure & Process Fiscal Management & Sustainability Advocacy Capacity Tool INDICATORS
JEOPARDY!
Closing REFLECTIONS
WEST COAST Oakland, CA 510-444-6070 Los Angeles, CA 213-346-3288 TEXAS Dallas, TX EAST COAST Washington, DC 202-822-6070 advocacy@afj.org 866.675.6229 for free coaching about laws impacting nonprofit advocacy www.bolderadvocacy.org for free tools, fact sheets and publications @AFJBeBold @NonaAFJ BolderAdvocacy