Legal Tips for Nonprofit Advocates Lobbying & Advocacy 101: Legal Tips for Nonprofit Advocates Natalie Ossenfort, Director, Texas Office 1

AGENDA 1. Comparison of Nonprofit Types and 1. 1. Basic Advocacy Rules 2. What is Advocacy? 3. Knowing your Limits 4. Lobbying Definitions 5. Other Practical Bolder Advocacy Tools AGENDA 2

501(c)(3) Public Charities cannot support or oppose a candidate 501(c)(4)s - 501(c)(5)s - 501(c)(6)s 501(c)(3) Public Charities Examples contributions tax-deductible tax-exempt Tax Treatment tax-exempt limited -insubstantial part or 501(h) Lobbying Activities unlimited secondary activity follow federal and state election law cannot support or oppose a candidate for office Electoral Activities

AVENUES OF ADVOCACY Public Education Nonpartisan Voter Ed. Organizing Influencing Corporations PARTISAN POLITICAL Lobbying Exceptions Educating Legislators Regulatory Efforts Educational Conferences LOBBYING Get to Know Legislators Litigation Research Training AVENUES OF ADVOCACY 4

WHY ADVOCACY?

What can I do? What should I do?

INSUBSTANTIAL PART TEST Default test What is “insubstantial”? Lobbying not defined Activities-based Penalty or 501(H) EXPENDITURE TEST Dollar-based limits One-time election – IRS Form 5768 Expenditures only Definition of lobbying Penalty less severe

1. Calculate organization’s annual expenditures. 2. Overall lobbying limit: ANNUAL EXPENDITURES OVERALL LOBBYING LIMIT $500,000 or less 20% $500,000 to $1 million $100,000 +15% of excess over $500,000 $1 million to $1.5 million $175,000 +10% of excess over $1 million $1.5 million to $17 million $225,000 + 5% of excess over $1.5 million Over $17 million $1,000,000 3. Grassroots lobbying limit is 25% of overall limit.

Education & Non-Lobbying Advocacy Grassroots Direct TOTAL LOBBYING LIMITS for 501(c)(3)s making the 501(h) election with annual expenditures of $250,000 $50,000 Overall Lobbying Limit Grassroots Lobbying Limit $12,500 9 9

WHAT IS LOBBYING UNDER THE INSUBSTANTIAL Contacting legislators to propose, support, or oppose legislation or the government’s budget process. Urging the public to contact legislators to propose, support, or oppose legislation or the government’s budget process. Advocating the adoption or rejection of legislation. WHAT IS LOBBYING UNDER THE INSUBSTANTIAL PART TEST?

WHAT IS LOBBYING UNDER THE 501(H) ELECTION? DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action WHAT IS LOBBYING UNDER THE 501(H) ELECTION?

expresses a view about specific legislation DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action 12

City Council, County Board of Supervisors DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action Federal Members of Congress State State Legislature Local City Council, County Board of Supervisors 13

expresses a view about specific legislation DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action Who is a legislator? President, governor, mayor, or other executive official who participates in the formulation of legislation. 14

SPECIAL “LEGISLATOR” RULE DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action SPECIAL “LEGISLATOR” RULE Members of the general public are “legislators.” Ballot Measures ballot initiatives referenda constitutional amendments bond measures

NOT LEGISLATORS school boards zoning boards housing authorities sewer and water districts other “special purpose bodies” NOT LEGISLATORS

DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action

DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action

The August recess isn’t meant for playtime! SPECIFIC LEGISLATION The August recess isn’t meant for playtime! Ask Congress to include crucial civil rights priorities in the Elementary and Secondary Education Act. ISSUE: ESEA Reauthorization

NOT SPECIFIC LEGISLATION Ensure equal opportunity in education for all children. Support civil rights protections for underserved students. ISSUE: Civil Rights Protections in Schools

NOT SPECIFIC LEGISLATION Regulations Executive Orders Enforcement of Existing Law Litigation NOT SPECIFIC LEGISLATION 21

CALL TO ACTION DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action CALL TO ACTION 22

DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action TELLING TO CONTACT legislator(s) PROVIDING ADDRESS, telephone number, and/or other contact information of legislator(s) PROVIDING MECHANISM to enable communication with legislator(s) IDENTIFYING legislator(s)

NOT LOBBYING NOT calls to action: “Learn more!” “Take action!” DIRECT communication legislator expresses a view about specific legislation GRASSROOTS general public call to action NOT calls to action: “Learn more!” “Take action!” “Support our efforts!” “Get involved!” NOT LOBBYING 24

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LOBBYING EXCEPTIONS nonpartisan analysis, study, or research request for technical assistance self-defense examinations and discussions of broad social, economic, and similar problems LOBBYING EXCEPTIONS 29

LOBBYING LIMITS V. DISCLOSURE limit lobbying at all levels of government disclose state / local lobbying disclose federal lobbying LOBBYING LIMITS V. DISCLOSURE 30

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