• Advocacy Principles
• Advocacy By Charitable Organizations
• How to Testify at a Public Hearing
• How-To Resources from the Center for Lobbying in the Public Interest
• Rating Legislation
• Child Advocacy Primer
• Issues For A Children's Agenda
• Stand For Children Ideas
• The ABCs Of Movement Building
• Lobbying Legislators
• Barriers To Grassroots Organizing

Advocacy

Advocacy By Charitable Organizations

Summary Of Advocacy Information For Charitable Organizations

The tax-exempt status of public charities restricts their ability to influence specific legislation. The extent to which "lobbying" is allowed is limited.


Q. What is "Direct Lobbying?"
A. Communication with member of staff of a legislative body or other governmental officials or staff who may participate in formulation of legislation. The communication must refer to specific legislation and reflect a view on that legislation.

Q. What is "Grassroots Lobbying?"
A. Those activities that are designed to encourage others to contact legislators. Organizational communication with the general public or any segment of the general public, and the communication refers to specific legislation, reflects a view on the specific legislation, and has a "call to action".

Q. What is a "Call to Action?"
A. Communication which states the recipient should contact a legislator or other governmental representative or employee involved in the process; states the address, telephone number, etc. of a legislator, employee involved in the process; provides a petition or similar vehicle for communication with the legislative body; identifies specific legislators who will vote on the specific legislation.

Q. What activities are excluded from the definition of "lobbying or influencing legislation?"
A. There are five:

1. Self defense communication (fending off legislation which affects organization's status)
   
2. Technical advice: provides technical information to governmental body in response to a written request for information.
   
3. Non-partisan analysis - studying community problems and proposing solutions. Should contain full and fair information to facilitate an independent conclusion.
   
4. Discussion of broad social issues and communications with organizations own members so long as no position on specific legislation is taken and there is no call to action.
   
5. Communication with governmental bodies on non-legislative matters.
   

Q. How much can charitable organizations lobby?
A. There are two categories by which the IRS will measure compliance. First, if the organization does not formally elect to lobby, it is subject to the "substantial" test. This standard is somewhat vague, but simply says "no substantial part of a charity's activities . . . is carrying on propaganda or otherwise attempting to influence legislation." Second, those organizations that formally elect to lobby are subject to the "expenditure" test. The formal election to lobby requires the filing of IRS form 5768 (one time event) and clearly identifies (using numbers!) the percentage of total organizational expenses that may be spent on lobbying, e.g., Up to 20% of the first $500,000.00 of its total expenses.

In conclusion, lobbying by charitable organizations is permitted under law. For organizations who have not elected a percentage of total expenses as lobbying expense, the "substantial" test will obtain. The test is vague which means if you anticipate lobbying expenses and you are subject to this test, keep clear records of expenditures related to lobbying and be aware of how much of the organization's budget is being expended on lobbying. If it "feels " substantial, it probably is! Finally, if you have a direct pecuniary interest in specific legislation (i.e., it will financially benefit you), step back from direct lobbying; it may well be an ethical violation which can only serve to harm the organization. Finally, (really!) Keep in mind that federal and state contract monies generally carry with them a lobbying prohibition. (Review your contracts) You may be required to demonstrate the source of funds expended in your lobbying efforts, so it is wise to track those funds in your accounting records.

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