ADVOCACY AND LOBBYING FOR NON-PROFITS March 22, 2017 The webinar will begin shortly. If you experience a problem signing on, please contact the ReadyTalk Technical Support Line at 800.843.9166 for direct assistance.
Today s Speakers Nikhil Pillai Counsel Bolder Advocacy Initiative at Alliance for Justice Monica Fuentes Director of DC Office Welcoming America
ADVOCACY AND LOBBYING FOR NON-PROFITS NIKHIL PILLAI
For free coaching about laws impacting nonprofit advocacy: advocacy@afj.org nikhil@afj.org 866.675.6229 For free tools, fact sheets, and publications www.bolderadvocacy.org @AFJBeBold BolderAdvocacy
KEY POINTS Not all advocacy is lobbying. Have you made the 501(h) election? If your activity doesn t have all the elements of lobbying, isn t not lobbying! What system do you use to track lobbying?
501(c)(3) 501(c)(4) 501(c)(5) 501(c)(6) Political Organizations Examples Tax Treatment Tax-Exempt Contributions tax-deductible Private Foundation grants Tax-Exempt Tax-Exempt Lobbying Activities Limited Unlimited Rare and usually taxable Electoral Activities Cannot support or oppose a candidate for office Secondary activity Follow federal and state election law Usually, sole activity
Local Governments: Rules vary by state and locality. Most forms of advocacy are available to you. Can engage in any type of advocacy in your personal capacity. Contact Alliance for Justice for assistance!
WHAT IS ADVOCACY?
Organize Communities Educate Legislators Encourage Voting Educate Public PARTISAN POLITICAL Educational Conferences Nonpartisan Voter Ed. Lobbying Exceptions LOBBYING Change Corporate Behavior Regulatory Efforts Litigation Research Skills Training TYPES OF ADVOCACY
Lobbying Partisan Activity Advocacy TYPES OF ADVOCACY
Capacity Building Tools
Nonprofits can and should ADVOCATE for POLICY CHANGE!
Not all ADVOCACY is LOBBYING!
HOW MUCH LOBBYING?
INSUBSTANTIAL PART TEST 1. What is insubstantial? 2. Default test 3. Activities-based 4. Lobbying not defined 5. Penalty or 501(H) EXPENDITURE TEST 1. Dollar-based limits 2. One-time election IRS Form 5768 3. Expenditures only 4. Definition of lobbying 5. Penalty less severe HOW MUCH LOBBYING FOR PUBLIC CHARITIES?
Contacting legislators to propose, support, or oppose legislation or the government s budget process. Urging the public to contact legislators to propose, support, or oppose legislation or the government s budget process. WHAT IS LOBBYING UNDER THE INSUBSTANTIAL PART TEST? Advocating the adoption or rejection of legislation.
Trying to influence legislation, including supporting or opposing WHAT IS LOBBYING UNDER THE INSUBSTANTIAL PART TEST? ballot measures
LOBBYING = ATTEMPTING TO INFLUENCE LEGISLATION
LOBBYING LIMITS under 501(h)
1. Calculate organization s Exempt Purpose Expenditures Annual Expenditures (for most organizations) 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 $500,000 $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 $500,000 Direct Grassroots Education & Non-Lobbying Advocacy Overall Lobbying Limit Grassroots Lobbying Limit $100,000 $25,000
990 Schedule C Part II-A
Have you made the 501(H) ELECTION?
DIRECT communication legislator expresses a view about specific legislation GRASSROOTS communication general public expresses a view about specific legislation WHAT IS LOBBYING UNDER THE 501(H) ELECTION? 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 U.S. Legislators and staff Legislator Expresses a view about specific legislation GRASSROOTS Communication General public Expresses a view about specific legislation Call to action State Legislators and staff County Board of Supervisors, City Council and staff
DIRECT Communication President, governor, mayor, or other executive official who participates in the formulation of legislation. Legislator Expresses a view about specific legislation GRASSROOTS Communication General public Expresses a view about specific legislation Call to action
School boards Zoning boards Housing authorities Sewer and water districts Other special purpose bodies NOT LEGISLATORS
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 SPECIAL LEGISLATOR RULE Members of the general public are legislators. Ballot Measures - ballot initiatives - referenda - constitutional amendments - bond measures GRASSROOTS communication general public expresses a view about specific legislation call to action
Generally, a direct lobbying tweet (communication) would include a legislator s twitter handle (legislator) in the tweet and express a view about a piece of legislation or the budget.
Regulations Executive Orders Enforcement of Existing Laws Litigation NOT SPECIFIC LEGISLATION
DIRECT Communication Legislator Expresses a view about specific legislation GRASSROOTS Communication CALL TO ACTION 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 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) 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
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 Not Calls to Action: Learn more Take action Support our efforts Get involved Expresses a view about specific legislation Call to action NOT Lobbying
Does your ACTIVITY have all the elements of LOBBYING? If NO, it s 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 represent full and fair discussion be broadly disseminated MAY express a view NONPARTISAN ANALYSIS contain indirect call to action limit subsequent grassroots lobbying LOBBYING EXCEPTIONS
MUST BE invited in writing on behalf of committee TECHNICAL ASSISTANCE available to all members of committee MAY express a view on Specific legislation LOBBYING EXCEPTIONS
MUST RELATE TO powers and duties tax-exempt status deductibility of contributions SHOULD consult with attorney SELF-DEFENSE LOBBYING EXCEPTIONS
NO SPECIFIC LEGISLATION ANALYSIS + DISCUSSIONS blue ribbon panel annual reports early stages of policy development NO CALL TO ACTION communication does not include call to action LOBBYING EXCEPTIONS
IRS Lobbying KEY POINTS: Public Charities can and should lobby; They just have to stay within their annual lobbying limits. Most 501(c)(3) 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 assistance!
LOBBYING LIMITS V. DISCLOSURE limit lobbying at all levels of government disclose state / local lobbying disclose federal lobbying
KEEPING TRACK
What system do you use for RECORDING YOUR LOBBYING?
Lobbying Expenses $10 for Taxi ride to Capitol to lobby $50 for photocopies for direct lobbying $100 dollars for photocopies of preaddressed letters to be handed out as grassroots lobbying efforts
1. BE REASONABLE: Very few explicit rules Pick a system that reasonably reflects activities and expenses and isn t overly complicated 2. BE CONSISTENT: Once you decide on a system, avoid frequent changes Change only to correct problems, not to try to game the system GENERAL RULES
FOR MORE INFORMATION:
QUESTIONS?
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