Dos and Don’ts for Charities That Lobby

The following suggestions for charities that want to advocate for their cause with lawmakers were culled from a dos and don’ts list provided by the Alliance for Justice, an association of advocacy groups in Washington. Among the steps:

Choose how the Internal Revenue Service will regulate the organization’s lobbying. Nonprofit groups have two choices in how they can be regulated. By choosing what is called the 501(h) election, organizations can spend up to $1-million a year on advocacy, depending on the group’s size.

This simple, one-time filing with the Internal Revenue Service can provide an organization with clear guidance about lobbying and how much it can spend on such activities. An alternative approach allows lobbying as long as it does not become what the IRS considers a substantial part of the group’s work.

Understand that all lobbying is advocacy, but not all advocacy is lobbying. While lobbying is permitted within certain limits, other forms of advocacy (lawsuits, education, research, and analysis, for example) can be conducted without any limits.

Keep good records about lobbying-related expenses. This will enable an organization to report them accurately on its Form 990, the informational tax return charities must file with the IRS.

Seek resources. Check out the charity’s state nonprofit association or national organizations, like the Alliance for Justice or another Washington group, the Center for Lobbying in the Public Interest. Theywill offer advice and training on the legal limits that guide charity lobbying.

Never support or oppose political candidates. Charities are prohibited by law from expressing support for or opposition to any candidate for office at any level of government.

Do not ask private foundations to earmark grants for lobbying purposes. Both private and community foundations can provide general-support grants to groups that lobby and finance projects that include lobbying, but only community foundations, in limited circumstances, can specifically support a lobbying activity.