Transcript Review Slides

LOBBYING VS. ADVOCACY
AUGUST 30, 2016
Lobbying vs. Advocacy
- Lobbying: attempts to influence
specific legislation through
direct or grassroots
communication with legislators
or their staff.
- Advocacy can occur without
lobbying, but lobbying cannot
occur without advocacy.
- Lobbying is considered
constitutionally protected free
speech.
- Advocacy: a range of activities
that seek to bring about systemic
social change
- Often seeks to address root
causes as well as the symptoms
of social and economic problems.
- Action may include community
organizing, public policy, and
lobbying litigation, or
nonpartisan voter engagement.
Lobbying vs. Advocacy
Lobbying for 501(c)(3)
1) “Insubstantial Part” test (vaguely defined)
- Since 1934, the IRS dictates that “no substantial part of a
charity’s activities… be carrying on propaganda or otherwise
attempting to influence legislation. “Insubstantial” is not
further defined.
- Unfortunately, this has led many nonprofits to tiny amounts of
lobbying.
2) “Expenditure” test or Section (501)(h) election (clearly defined).
- Section h is recommended and easy to do – filing a simple onepage form (form 5768).
- Provides clear definitions and generous ceilings.
- Can be done at any time.
Direct vs. Grassroots Lobbying
- Both seek to influence specific
legislation.
- You are direct lobbying when you
state your position on specific
legislation to legislators or staff who
participate in the formulation of
legislation.
- Generally, organizations (NOT c(3)s)
that elect the 1976 lobby law may
spend 20 percent of the first
$500,000 of their annual
expenditures on direct lobbying
($100,000), 15% of the next
$500,000, and so on, up to one
million dollars a year.
- We’ll talk about different rules for
c(3) and c(4) in a moment.
- You are participating in
grassroots lobbying when you
state your position to the general
public and ask them to contact
legislators or other government
employees who participate in the
formulation of legislation.
- An organization may spend only
one-fourth as much on
grassroots lobbying, as on direct
lobbying. So, for example, if the
group’s annual permissible
lobbying expenditures were
$100,000, it could spend only
$25,000 on grassroots lobbying.
But it could spend the remaining
amount of $75,000 on direct
lobbying
Specifics
Advocacy
• Telling your member of Congress how a federal grant your organization received
has helped your constituents.
• Educating a member of Congress about the effects of a policy (but not a specific
piece of legislation) on your constituency.
• Inviting a member of Congress to visit your organization so that he/she may see
firsthand how federal funding or a policy affects day-to-day operations and the
difference it makes.
Lobbying
• Asking your member of Congress to vote for or against, or amend, introduced
legislation.
• Emailing a “call to action” to your members urging them to contact their
member of Congress in support of action on introduced legislation or pending
regulations.
• Preparing materials or organizing events in support of lobbying activities.
Lobbying for 501(c)(3)
- Lobbying activities include attempts to help pass or repeal legislation,
as well as outreach to gain public support or opposition to legislation.
- 501(c)(3) nonprofits are limited to conducting only “insubstantial”
lobbying efforts, determined by the size of the organization.
- Typically, insubstantial means that you would allocate less than 10
percent of the nonprofits total operating budget – but the 501(h)
election provides more leeway and is MUCH easier.
- If the nonprofit is found to have engaged in substantial lobbying
efforts, it will lose its exempt status.
- These organizations are prohibited from supporting or endorsing any
candidate for public office.
Lobbying for 501(c)(3)
YOU CAN:
-
Educate elected officials on issues of concern in the financial aid space
Arrange meetings with elected officials to learn their views on student
aid
Invite elected officials to meetings of the organization to talk about
financial aid
Send literature on financial aid to elected officials
-
YOU CAN’T:
-
Endorse or oppose candidates for public office
Collect or distribute funds for political campaigns
Give candidates your mailing lists
Donate the use of your facilities for political fundraising
Lobbying for 501(c)(4)
- 501(c)(4) organizations may engage in unlimited lobbying and
promotion of candidates, provided that these efforts fall with the
purpose of the organizations.
- Qualification judged by activates over the entire tax year.
501(c)(3)
Private Foundation
501(c)(3)
Public Charities
Tax-Exempt
Tax-Exempt
Contributions
tax-deductible
Contributions
tax-deductible
PROHIBITED
LIMITED
Tax on foundation
& managers
Insubstantial Part
or 501(h)
Cannot support or
oppose a candidate
for office
Cannot support or
oppose a candidate
for office
501(c)(4)
Examples
Tax
Treatment
Lobbying
Activities
Electoral
Activities
Tax-Exempt
UNLIMITED
Secondary activity
Follow federal and
state election law
State Rules Differ
http://www.ncsl.org/research/ethics/50-state-chart-lobby-definitions.aspx
JUSTIN BELAND
[email protected]
@JUSTINBELAND