United Way of Miami-Dade and Public policy advocacy and lobbying by nonprofits

Yes. Although non-profits must stay within the limits set by the IRS and their funders, non-profit agencies can (and should) act to protect their interests. Non-profit agencies are permitted to engage in two types of lobbying activities:

Direct lobbying is communication with a legislator or an elected official (or a staff member) for the purpose of persuading that person to support or oppose legislation.
Grassroots lobbying is encouraging the general public to take action to influence the outcome of proposed legislation.

In the case of an initiative, the public fulfills the role of the legislature. Communications regarding a ballot measure are considered direct lobbying and are permissible for non-profits.

Federal law does not allow nonprofits to endorse candidates or work on political campaigns for individuals seeking office.

What are the limits?

Non-profits must conform to any restrictions imposed by their funders. State, federal, and foundation funders generally prohibit use of their funds for lobbying purposes. Use of other income, however, is not prohibited. Donations, proceeds from fundraisers, membership dues—in short, any “unrestricted” funds—may be used for lobbying.

Non-profits are limited by Section 501(c)(3) of the Internal Revenue Code. This law requires that nonprofits spend “no substantial part” of their budgets on lobbying. The law provides no specific definition of “substantial,” but staying under 5% is a safe rule of thumb.

The 1976 Public Charity Lobbying Law permits nonprofits to “elect” to allocate more to lobbying. Organizations that elect the 1976 lobby law may spend 20% of the first $500,000 of their annual expenditures on lobbying ($100,000), 15% of the next $500,000, and so on, up to $1 million dollars a year. This option requires detailed recordkeeping for lobbying expenditures and filing of IRS Form 5768.

What are the consequences?

A nonprofit that exceeds the "no substantial part" rule may lose its nonprofit status.

Any nonprofit that is likely to exceed the 5% limit should "elect" to come under the provisions of the Charity Lobbying Law by filing Form 5768 with the IRS and keeping appropriate records. A nonprofit that exceeds the limits for lobbying under this option will be subject to tax payments and, if the overspending continues, will lose its nonprofit status.

Advocacy without lobbying

Nonprofits can participate in many activities that are not considered by federal law to be lobbying or campaigning; for example:

Nonpartisan voter registration drives
Distribution of voter education materials that do not endorse or oppose a candidate/party or show a bias on the issue presented
Testifying before a legislative committee when the organization has received a written request from the committee to testify
Contacting a government executive about an issue, as long as you do not ask that person to promote, discourage, or veto specific legislation
Discussing legislation in communications to members without urging action
Lobbying legislators on issues that might affect an organization’s own existence or status
Responding to requests for information from a legislator or legislative body
Providing research and analysis on issues in a manner that presents all facts and allows the reader to form an independent opinion, without including a “call to action”

Public policy advocacy and lobbying by nonprofits

Can non-proftis lobby?

What are the limits?

What are the consequences?

Advocacy without lobbying

var addthis_config = { services_compact: 'facebook, twitter, linkedin, delicious, digg, stumbleupon, care2', services_exclude: 'email, print' }