Non-Profit Success in the Government Arena June 5, 2006

Truth Government Aristocracies Religious Institutions The People

Truth Government Aristocracies Religious Institutions “We” The People

1776, Quite a Year The Declaration of Independence Adam Smith’s “Wealth of Nations” And the non-profit sector?

“Rugged Individualism” Success in life is pretty much determined by forces outside of your control (% Disagree)

“It is the responsibility [of the state] to take care of very poor people who cannot take care of themselves,” % Agree

It’s a Small Welfare State After All Low spending… Low taxes…

Checks & Balances (Separation of Powers)

1 Federal Government 50 State Governments 550 Federally-Recognized Indian Tribes 3,043 County Governments 19,279 Municipal Governments 14,422 School Districts 16,656 Townships and Towns 31,555 “Special Districts” Federalism in the US

Anyone care to guess how many people hold elected office in the United States?

Ohio Congressional Districts

Changing Locations of “Government”

The Size of the Election Reform Problem 1.4 million poll workers 700,000 voting machines 200,000 polling places 7,000 + election-district jurisdictions 3,000 + counties Each state with different rules Federalism

Rule Number One Know the Political Terrain (Anyone Remember the SST?)

Rule Number Two Understand your place in that terrain And think North, South, East and West

Rule Number Three Build Coalitions, North, South, East and West (Anyone Remember the Dollar Coin?)

Rule Number Four Lead by Serving

Lobbying Who can Lobby? -Anyone (everyone who communicates with a legislator is a lobbyist) How -The Real power of nonprofits comes from grassroots strength 1. Quality of # of communications; 2. Direct (effective) communications; 3. Virtue = Campaign $

Lobbying Three Key things to know -Understanding Legislature process Example. Identifying Key (influential) committee member -The details of the Bill -Your organization (how it communicates with its grassroots)

Lobbying Your Greatest Asset is Expertise

Lobbying Pitfalls to avoid -Setting priorities, avoid too many “number one” issues -Use media opportunities -Build functioning coalitions (example. Electing a secretariat of the coalition)

501 (c) (3) lobbying lobby law: Clarified and recognized lobbying as a proper function of nonprofits (direct lobbying and grassroots lobbying) -In 1990, IRS: issued a regulation greatly extending the lobbying right to nonprofits

501 (c) (3) lobbying Ceilings Exempt-Purpose Expenditures Total Lobbying Expenditures Amount of Total Allowable for Grassroots Lobbying Up to $50,00020 of exempt-purpose expenditures One-quarter $500,000-$1 million$100, % of excess over $500,000 $25, % of excess over $500,000 $1 million - $1.5 million$175, % of excess over $1million $43, % of excess over $1 million 1.5 million - $17 million$225, % of excess over $1.5 million $56, % of excess over $1.5 million Over $17 million$1 million$250,000

501 (c) (4) lobbying US Supreme Court, Ragan v. Taxation with Representation of Washington: No limitations on lobbying on behalf of their exempt purpose ( keep records separate to show that tax-deductible contributions are not used to pay for lobbying)

Non-Profit Success in the Government Arena June 5, 2006