1. L OBBYING VS. A DVOCACY A UGUST 30, 2016

2. 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.

3. Lobbying vs. Advocacy

4. 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 one- page form (form 5768). -Provides clear definitions and generous ceilings. -Can be done at any time.

6. 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

7. 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.

8. 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.

9. 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

10. 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.

11. 501(c)(3) Private Foundation 501(c)(4) Examples Tax Treatment Lobbying Activities Electoral Activities Contributions tax-deductible Tax-Exempt U NLIMITED Cannot support or oppose a candidate for office Secondary activity Follow federal and state election law PROHIBITED Tax on foundation & managers 501(c)(3) Public Charities Contributions tax-deductible Tax-Exempt Cannot support or oppose a candidate for office LIMITED Insubstantial Part or 501(h )

12. State Rules Differ http://www.ncsl.org/research/ethics/50-state-chart-lobby-definitions.aspx

13. J USTIN B ELAND JUSTIN _B ELAND @ HCMSTRATEGISTS. COM @J USTIN B ELAND