Transcript Analysis of Federal & State Funding Streams

Presentation to Spark NH
July 27, 2012
Jack Lightfoot, Child and Family Services
Based on materials from
NH Center for Nonprofits
Alliance for Justice
 All
lobbying is advocacy
 Not
all advocacy is lobbying
 501(c)3
organizations may not
support or oppose candidates
◦ Allowable electoral activities require
separate presentation
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
IRS rules for 501(C)3 nonprofits

State laws on lobbying registration

Funding restrictions
Note:
Generally, the more restrictive rule applies.
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
501(c)3 public charities are allowed to
lobby within broad limits
◦ “insubstantial part”
◦ 501(h) election
 Clear dollar limits on what can be spent
 20% of first $500,000 of exempt expenditures
 501(h) is in addition to, not instead of, 501(c)3
designation
 Lobbying must be reported by both 501(h) and non501(h) organizations
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
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Up to 25% of total allowable lobbying
expenses may be directed at grassroots
lobbying
Explicit definition of lobbying activities and
exclusions
◦ E.g. Nonpartisan analysis, study or research that
presents all sides of a legislative issue
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
Direct Lobbying:
◦ Communication with a legislator
◦ That expresses a view about specific legislation

Grassroots Lobbying
◦ Communication with the public
◦ That expresses a view about specific legislation
◦ AND includes a call to action
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Lobbying is not restricted
 Lobbyists generally required to register
NH RSA 15:1 Registration. –
I. Any person who is employed for a
consideration by any other person, except the
state of New Hampshire, in a representative
capacity for the purposes specified in
paragraph II of this section shall first register
as a lobbyist with the secretary of state.

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NH RSA 15:1
[registration required] of any person employed
(a) To promote or oppose, directly or indirectly, any
legislation pending or proposed before the general court, or;
(b) To promote or oppose, directly or indirectly, any
action by the governor, governor and council, or any state
agency, as defined in RSA 15-A:2, where such action
concerns legislation or contracts pending or proposed before
the general court, any pending or proposed administrative
rule, or the procurement of goods or services that are being
or may be purchased by the state, subject to the exclusions in
paragraph III.
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V. The following communications are excluded from the regulation imposed by
this chapter and shall not be considered in a determination of whether a
person is required to register and report as a lobbyist:
(a) Public testimony before a legislative committee or subcommittee.
(b) Public testimony before any entity subject to RSA 91-A, the right-toknow law.
(c) A written document filed in the course of a public proceeding or any
other communication that is made on the record in a public proceeding.
(d) Communication made by a public official acting in the public
official's official capacity.
(e) Communication made by a representative of a media organization if
the purpose of the communication is gathering or disseminating news and
information to the public.
(f) Communication made in a speech, article, publication, or other
material that is distributed and made available to the public, or through
radio, television, cable television, the Internet, or other medium of mass
communication.
(g) Communication made in writing which becomes a public record
subject to the provisions of RSA 91-A, the right-to-know law, provided in
response to a written request by a legislative or executive branch official.
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(h) Communication made to the governor or to any member of the
executive council, member of the general court, or public official as
defined in RSA 15-B:2, X by an employee on behalf of his or her
employer that would otherwise require registration under RSA 15:1, II,
provided that the person making the communication:
(1) Is not required to register and report as a lobbyist for any
person, including the employer on whose behalf the communication
exempted under this subparagraph is made;
(2) Is not specifically compensated by the employer or any other
person for making the communication;
(3) Has not been required to make the communication by the
employer or any other person required to register and report under this
chapter; and
(4) The purpose of the communication is to allow the employee to
communicate the employer's views or his or her personal views on any
matter within the scope of RSA 15:1, II that may affect the employer
and/or the employee in his or her capacity as an employee.
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NH RSA 15:5 Prohibited Activities. –
I. Except as provided in paragraph II, no recipient of a
grant or appropriation of state funds may use the state funds
to lobby or attempt to influence legislation, participate in
political activity, or contribute funds to any entity engaged in
these activities.
II. Any recipient of a grant or appropriation of state funds
that wishes to engage in any of the activities prohibited in
paragraph I, or contribute funds to any entity engaged in
these activities, shall segregate the state funds in such a
manner that such funds are physically and financially
separate from any non-state funds that may be used for any
of these purposes. Mere bookkeeping separation of the state
funds from other moneys shall not be sufficient.
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OMB Circular A-122
25. Lobbying
(a)Notwithstanding other provisions of this Circular, costs associated
with the following activities are unallowable
(3) Any attempt to influence: (i) The introduction of Federal or State legislation; or (ii) the
enactment or modification of any pending Federal or State legislation through
communication with any member or employee of the Congress or State legislature
(including efforts to influence State or local officials to engage in similar lobbying
activity), or with any Government official or employee in connection with a decision to
sign or veto enrolled legislation;
(4) Any attempt to influence: (i) The introduction of Federal or State legislation; or (ii) the
enactment or modification of any pending Federal or State legislation by preparing,
distributing or using publicity or propaganda, or by urging members of the general
public or any segment thereof to contribute to or participate in any mass demonstration,
march, rally, fundraising drive, lobbying campaign or letter writing or telephone
campaign; or
(5) Legislative liaison activities, including attendance at legislative sessions or committee
hearings, gathering information regarding legislation, and analyzing the effect of
legislation, when such activities are carried on in support of or in knowing preparation
for an effort to engage in unallowable lobbying
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
Providing a technical and factual presentation
of information on a topic directly related to
the performance of a grant, contract or other
agreement through hearing testimony,
statements or letters . . . provided such
information is readily obtainable and can be
readily put in deliverable form
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Special Rules Govern Foundation funding of
lobbying
Foundations may, and do, impose restrictions
not required by IRS
Public Foundations (such as NH Charitable
Foundation) are allowed to fund lobbying
Private Foundations (such as Endowment for
Health) may not earmark funds for lobbying
Corporations and individuals may establish
separate rules
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NH Center for Nonprofits:
http://www.nhnonprofits.org/knowledgecenter/nonprofbasics/advocacylobb
ying/rules_of_engagement.cfm
Alliance for Justice:
http://bolderadvocacy.org/