1. Grassroots Lobbying & Coalitions: Legal Issues American League of Lobbyists Lobbying Certificate Program
Ronald M. Jacobs
May 10, 2010

2. Efficacy & Ethics Disclosure Tax Campaign Finance Advertising
Agenda for Today
Efficacy & Ethics
Disclosure
Tax
Campaign Finance
Advertising 2

3. Efficacy & Ethics Are the contacts real?
Legitimate contact versus “Astroturf”

4. Real Contacts? Protect against fraud
Policies and procedures for employees or vendors
Have letters sent directly to legislature
Require reporting
Spot check 4

5. Astroturf versus Grassroots
Truthful and not misleading information
Careful use of statistics
Source information
Caution on use of scare tactics
Demographic contacted
Length of relationship 5

6. Disclosure Issues Federal Lobbying Disclosure Act State Disclosure
Grassroots not disclosed on LDA reports
Unless reporting using Method B or C
State Disclosure
Grassroots or “indirect” lobbying may be lobbying
Separate registration and reporting for grassroots 6

7. Tax Issues Different Rules Trade Associations 501(c)(3) Organizations
Must tell members what percentage of dues are nondeductible
501(c)(3) Organizations
Limits on lobbying
Businesses
May not deduct lobbying expenses

8. Tax Issues Section 162(e) Applies to associations and corporations
Lobbying broadly defined:
“Any attempt to influence the general public, or segments thereof, with respect to elections, legislative matters, or referenda.”
May allocate purpose

9. Tax Issues 501(c)(3) Organizations
Substantial part of activities may not be lobbying
Two methods
Facts and circumstances test – virtually no definition
501(h) election – specific definition, hard-dollar caps

10. Tax Issues 501(h) Election Definition
A communication to the public that
refers to specific legislation,
reflects a point of view on the legislation, and
encourages the recipients to take action with respect to the specific legislation by contacting their legislators.

11. Tax Issues 501(h) Election Exclusions
Existence, powers, or tax-exempt status
Money only
Does not include volunteer time
Communications with members with no call to action

12. Tax & Disclosure Issues
Methods B or C on LDA: include grassroots expenses
Includes state grassroots expenses
Some use Method A to avoid “artificially” high numbers
Disclosed on Form 990

13. Campaign Finance Issues
Under Citizens United may use candidate names and advocate election or defeat
Will be disclosure issues
Must avoid coordination
May raise new tax issues

14. Advertising Issues Media Email Phone Must identify sponsor
Should not be a CAN-SPAM issue
Phone
Calls to cell phones prohibited
Text messages may be permitted

15. Coalition Issues Tax implications Governance Legal Structure
Disclosure 15

16. Grassroots Lobbying & Coalitions: Legal Issues
Ronald M. Jacobs
May 10, 2010 16