The Nonprofit FAQ

Statement about Importance of Policy Advocacy

Introduction



Members of the Let America Speak! coalition have been
effectively opposing efforts over the last three years to
curtail or end lobbying by charities. Collectively, we share
the view that the rights of charities to speak out on behalf of
our communities, causes and clients is critically important to
achieving our missions. As many of you no doubt already know,
legislation passed in 1976 by Congress clarified and greatly
expanded the extent to which charities could lobby without
jeopardizing their tax exempt status. Information follows that
makes the case for charities to elect to come under the liberal
provisions of the 1976 lobby law. If you want additional
information, please contact any of our organizations listed
below or Center for Lobbying in the Public Interest, 2040 S
Street, NW, Washington, DC 20009; phone - 202/387-5048; fax -
202/387-5149

Charity Lobbying - It's the Right Thing To Do



Did you know that:

  • It's perfectly legal for your charity to lobby?
  • If your charity doesn't lobby, you are in danger of missing
    an opportunity to help those you serve?
  • Depending on your charity's total annual expenditures, you
    can spend up to $1 million each year on lobbying?
  • Many of the major social changes in our nation have come
    from voluntary sector lobbying and advocacy, including:
    protection of women's rights, child labor laws, stricter laws
    against drunk driving and smoking, requirements for safe
    drinking water and clean air, civil rights, disabled persons'
    rights and many, many more?
  • It's simple for your charity to elect to come under the
    provisions of the 1976 law that permits lobbying expenditures
    of up to $1 million?


Charity lobbying. It's the right thing to do!

Why Your Charity Should Elect to Come Under The 1976 Lobby Law - And How to Do It



The right of citizens to petition their government is basic to
our democratic way of life, and charitable organizations are
one of the most effective vehicles for making use of citizen
participation in shaping public policy. Fortunately,
legislation passed by Congress in 1976 makes it possible for
charities to lobby freely for their causes, communities and
individuals they serve. The federal government clearly
supports lobbying by charities. Congress sent this unambiguous
message when it enacted the exceedingly helpful 1976 lobby law.

The same message came from the IRS in regulations issued in
1990. Together, the law and regulations provide wide latitude
for charities to lobby.

But the law only provides this latitude for charities that
elect to be covered by it. In most circumstances, charities
should become subject to this law - not only because it
provides liberal limits on how much they can spend on lobbying,
but also because it provides very clear and helpful definitions
of what activities related to legislation do not constitute
lobbying. If you are formally asked to testify before a
congressional committee, for example, your testimony would not
constitute a lobbying expense.

Generally, 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!

If you do lobbying but don't elect to be subject to the 1976
law, your lobbying must be "insubstantial." This is a vague
term that has never been defined. If you remain subject to
this rule, you cannot be certain how much lobbying your charity
can do.

Some charities have been reluctant to elect the 1976 law for
fear that this action will either change their section
501(c)(3) status or serve as a "red flag" to the IRS and prompt
an audit of the organization. Neither concern is justified.
Electing to come under the 1976 law does not affect a charity's
tax exempt status. Electing charities remain exempt under
section 501(c)(3) of the Internal Revenue Code.

Further, the IRS has made clear in a letter to INDEPENDENT
SECTOR that far from singling out for audit charities that
elect, the reverse is true. The letter states, ". . . our
intent has been, and continues to be, one of encouragement [of
charities] to make the election . . . Experience also suggests
that organizations that have made the election are usually in
compliance with the restrictions on lobbying activities."

You can find the IRS Form 5768 at the IRS website (http://www.irs.gov/pub/irs-pdf/f5768.pdf ). You can use the form to elect to come under the 1976 lobby law.

There is lots of information at the Center for Lobbying in
the Public Interest on the Web at:
http://www.clpi.org.

For
additional information contact the Center for Lobbying in the Public
Interest as follows: Phone 202/387-5048; Fax 202/387-5149.

Charity Lobbying. It's the Right Thing to Do!

Let America Speak! Coalition



Co-Chairs

Alliance for Justice

2000 'P' St NW Ste 712

Washington DC 20036

(202) 822-6070

(202) 822-6068 Fax

http://www.afj.org


Independent Sector

1828 'L' St NW Ste 1200

Washington DC 20036

(202) 223-8100

(202) 331-8129 Fax

http://www.independensector.org


OMB Watch

1742 Connecticut Ave NW

Washington DC 20009

(202) 234-8494

(202) 234-8584 Fax

http://www.ombwatch.org (links to Right to Know Net)




See also the fuller explanation of the rules and consequences of making the 501(h) election at http://www.nonprofits.org/npofaq/11/08.html



Posted from NONPROFIT on July 28, 1998 -- PB; modifications to keywords, September 2, 1999; IRS link added and CLPI name change recognized 2/27/06 -- CM