lobbying basics for ywcas May 2007

GLA Advocacy 5.07 overview  introduction to “advocacy” and “lobbying”  other political activities  IRS rules for nonprofit lobbying  State rules for nonprofit lobbying  Questions/ Discussion

GLA Advocacy 5.07 “advocacy” is the work of making social change at the community, system, or institutional level

GLA Advocacy 5.07 ADVOCACY LOBBYINGORGANIZING ISSUE EDUCATION Nonprofits are legally permitted to engage in all of these activities

GLA Advocacy Contact 2. With an elected official 3. Expresses a view 4. On specific legislation “lobbying” has 4 necessary ingredients:

GLA Advocacy 5.07 question: what kind of contact counts as lobbying? answer: almost any. in person visits, phone calls, letters, s, faxes, public media aimed at a decision maker.

GLA Advocacy 5.07 “grassroots lobbying” is lobbying where the public is being asked to take the specific action

GLA Advocacy Contact 2. With the general public 3. Expresses a view 4. On specific legislation 5. Call to Action grassroots lobbying has 5 necessary ingredients:

GLA Advocacy 5.07 other political activities ALLOWED  work on ballot measures  educate candidates on your issues  create voter guides, scorecards, or candidate questionnaires  canvass on issues  get-out-the-vote/ voter registration drives

GLA Advocacy 5.07 other political activities NOT ALLOWED  endorse candidates for office  make campaign contributions  ask candidates to sign pledges on an issue  restrict use of facilities, mailing lists, etc. to specific candidates.

GLA Advocacy 5.07 The penalty for engaging in not allowed activities is revocation of an organization’s 501c3 status

GLA Advocacy 5.07 IRS rules for nonprofits 2 choices: 1. File 501h and “elect” to abide by this “lobbying limit” 2. Do nothing and default to the “insubstantial part” test

GLA Advocacy 5.07 about 501h  it only counts lobbying/ grassroots lobbying expenditures  time spent by volunteers and board members would not count as “activities” under 501h  electing 501h doesn’t change your 501c3 status  it doesn’t make you any more likely to be audited by the IRS  it is filed once during the life of the organization

GLA Advocacy 5.07 lobbying limit “lobbying limit” is the legal amount of your organization’s budget that can be used for lobbying expenses if you elect 501h

GLA Advocacy 5.07 calculating lobbying limit formula: 20% of first $500,000 15% of next $500,000 10% of next $500,000 5% of next $500,000 (up to $1 million cap) example: total budget of $2 million $100,000 $75,000 $50,000 $25,000 $ 250,000 is maximum possible for annual lobbying

GLA Advocacy 5.07 calculating grassroots lobbying limit formula: 25% of total lobbying limit application for total budget of $2 million $ 250,000 total limit X.25 62,500 grassroots limit

GLA Advocacy 5.07 Doing the Math  You will notice that your YWCA’s legal lobbying limit is many times greater than your likely lobbying expenditures in a year.  Compare this to the “insubstantial part test” where there is no clear limit on how much lobbying you can legally engage in.

GLA Advocacy 5.07 State Regulations  Each State requires “lobbyists” to register  Every state is different. As a general guide, if you spend more than $500/year, or make more than 3 contacts with legislators per year, you should consider registering as a lobbyist.  Your Secretary of State’s office is the best source of information regarding these requirements

GLA Advocacy 5.07 Where to go for more information  Alliance for Justice **Staff technical assistance attorneys are available at no cost to answer questions.  Center for Lobbying in the Public Interest

GLA Advocacy 5.07 GLA Advocacy Contact information Rebecca Gurney (614)