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Page 1: Alliance for Justice - How Non-Profits Can Engage in Advocacy 8.28.14

How can 501(c)(3) organizations engage in LOBBYING and

ADVOCACY?

 Nayantara Mehta Alliance for Justice

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AGENDA

1. Comparing 501(c)(3)s and 501(c)(4)s

2. What is advocacy?

3. How much lobbying can a 501(c)(3) do?

4. What is lobbying?

5. Keeping track of lobbying

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Comparing NONPROFITS

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501(c)(3) 501(c)(4)Political

Organizations

Examples

Tax Treatment

LobbyingActivities

ElectoralActivities

Contributions tax-deductible

Tax-Exempt

Private Foundation grants

Tax-Exempt Tax-Exempt

Limited Unlimited Rare and usuallytaxable

Cannot support or oppose a candidate

for office

Usually, sole activity

Secondary activity

Follow federal and state election law

IndependentEmily’s List

Connected/SSFLCV PAC

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What is ADVOCACY?

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Organize Communities

Educate Public

Educate Legislators

Nonpartisan Voter Ed.

PARTISAN POLITICAL

LOBBYING

Encourage Voting

Educational Conferences

Research

Lobbying Exceptions

Change Corporate Behavior

Skills Training

Regulatory Efforts

Litigation

Avenues for ADVOCACY

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Advocacy Capacity Tool (ACT) www.BolderAdvocacy.org/ACT

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Nonprofits can and should

ADVOCATE & LOBBY forPOLICY CHANGE!

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How much LOBBYING?

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How Much LOBBYING?

INSUBSTANTIAL PART TEST

1. Lobbying is an “insubstantial part” of the organization’s activities, no clear limits or definitions

2. Default test

or

501(H) EXPENDITURE TEST

1. One-time election – IRS Form 5768

2. Definitions of lobbying

3. Dollar based limits

4. Expenditures only

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$62,500

$250,000

Chart Title

Education & Non-Lobbying

Advocacy

TOTAL LOBBYING LIMITSfor a 501(c)(3) using the 501(h) election, with annual expenditures of $2 million

Overall Lobbying Limit

Grassroots Lobbying Limit

Grassroots

Direct

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LOBBYING Definitions

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LOBBYING for organizations using the Insubstantial Part Test:

- Contacting legislators to propose, support, or oppose legislation

- Urging the public to contact legislators to propose, support, or oppose legislation

- Advocating the adoption or rejection of legislation

Attempting to influence LEGISLATION

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

LOBBYING for organizations using 501(h)

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

Federal Members of Congress

State State Legislature

Local City Council, County Board of

Supervisors

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

President, governor, mayor or other executive official who participates in the formulation of legislation

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SPECIAL “LEGISLATOR” RULEMembers of the general public are “legislators”

Ballot Measures

Ballot initiatives

Referenda

Constitutional amendments

Bond measures

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

NOT “LEGISLATORS”

Special Purpose Boards:

School boards Planning

commissions Zoning

commissions Water districts

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

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Regulations

Executive Orders

Enforcement of Existing Laws

Litigation

NOT LEGISLATION

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LOBBYING or NOT? Urging city council members to pass local living wage

ordinance:

Meeting with Planning Commission to oppose permit for expansion of oil refinery:

Urging DHS Secretary to support the DREAM Act and to reform immigration enforcement practices by DHS:

Educating legislators about public opinion on climate change and need for government to act (with no pending or proposed legislation):

LOBBYING

NOT LOBBYING

PARTIALLY LOBBYING & PARTIALLY NOT LOBBYING

NOT LOBBYING

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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

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TELLING TO CONTACTlegislator(s)

PROVIDING ADDRESS,telephone number, and/or other

contact information of legislator(s)

PROVIDING MECHANISMto enable communication

with legislator(s)

IDENTIFYINGlegislator(s)

DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

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DIRECT

Communication

Legislator

Expresses a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action Not Lobbying

Not Calls to Action: “Learn more” “Take action” “Support our efforts” “Get involved”

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DIRECT

Communication

With a legislator

Expressing a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

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DIRECT

Communication

With a legislator

Expressing a view about specific

legislation

GRASSROOTS

Communication

General public

Expresses a view about specific

legislation

Call to action

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Nonpartisan analysis, study, or research

Request for technical assistance

Self defense

Examinations and discussions of broad social, economic, and similar problems

Lobbying EXCEPTIONS

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MUST

Full and Fair Discussion

Broadly Disseminated

MAY

Express a View

Indirect Call to Action

Subsequent Grassroots

Lobbying limited

Nonpartisan ANALYSIS

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Request for Technical ASSISTANCE

MUST

Invitation in Writing on behalf

of Committee

Available to all members of Committee

MAY

Express a View on Specific Legislation

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REMEMBER:

Nonprofits can and should lobby; 501(c)(3)s just have to stay within their annual lobbying limits

Using the 501(h) option will simplify lobbying planning and reporting

Only what meets the definition of lobbying counts toward a 501(c)(3)’s lobbying limit

Track staff time spent on lobbying in order to report to IRS annually

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How to KEEP TRACK

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REASONABLEallocation

501(h)

Direct Costs

Staff Time

Overhead

INSUBSTANTIAL PART

Volunteers

Activities Specified on Form 990

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501(h)

Direct Costs

Staff Time

Overhead

INSUBSTANTIAL PART

Volunteers

Activities Specified on Form 990

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$15,000

Overhead

10% Direct

Lobbying

5% Grassroots Lobbying

Cost Center Direct Grassroots

Direct Costs $60 $100

Staff Time $750 $250

Overhead $1500 $750

Total Expenditures

$2310 $1100

Total Lobbying EXPENDITURES

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501(h)

Direct Costs

Staff Time

Overhead

INSUBSTANTIAL PART

Volunteers

Activities Specified on Form 990 + a

“detailed description”

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For more information:

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QUESTIONS?

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WEST COASTAlliance For Justice

436 14th StreetSuite 425

Oakland, CA 94612510-444-6070

EAST COASTAlliance for Justice11 Dupont Circle, NW2nd FloorWashington, DC 20036202-822-6070

[email protected]

www.bolderadvocacy.orgfor fact sheets and publications

@AFJBeBold

www.facebook.com/#!/BolderAdvocacy


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