1. TAKE A STAND Ballots Measure Advocacy for Nonprofits
Presented by
&

2. ABOUT NONPROFIT VOTE
Founded in 2005, Nonprofit VOTE partners with America's nonprofits to help the people they serve participate and vote. We are the leading source of nonpartisan resources to help nonprofits integrate voter engagement into their ongoing activities and services.
Visit our website for more on our mission and partners:
About 2

3. Today’s presenters Ronnie Pawelko Elections Council
Alliance for Justice
Who

4. Bolder Advocacy promotes active engagement in democratic processes and institutions by giving nonprofits and foundations the confidence to advocate effectively and by protecting their right to do so. Our goal is to demystify and decode advocacy by equipping organizations with knowledge and tools. We help organizations fully understand the rules and become assertive in their right to pursue their policy goals.
Bolder Advocacy is an initiative of the Alliance for Justice – a national association of more than 100 organizations that are united by a commitment to a fair, just, and free America where everyone has equal access to justice and can fully participate in our democracy. To learn more about our work on justice issues, visit AFJ.org. 4

5. Agenda How much lobbying can we do?
What is the definition of lobbying and how does it apply to ballot measures?
Are there any lobbying exceptions for ballot measures?
How can we ensure our ballot measure advocacy is nonpartisan?
Agenda

6. Federal and state law Federal Law State law
Limits lobbying (including ballot measures advocacy) at all levels of government.
State law
May require disclosure of state ballot measure advocacy.
Today I will be talking about two distinct laws: Federal Tax Law and California Political Reform Act, a sunshine law.
First, federal tax law (governed by the IRS), provides that 501©(3) organizations can support or oppose ballot measures and treats this activity as lobbying. Basically, the IRS says “You can Do IT!”
Second, you must also comply with state law, the Political Reform Act, which is governed by the Fair Political Practices Commission. State law requires the disclosure of your ballot measure activity. So, you can do it; but you have to report it.
Federal/
State

7. Range of activities Drafting Gathering signatures for petitions
Supporting / opposing ballot measure
Voter registration and GOTV
“Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
Activities

8. Comparing nonprofits Comparing Nonprofits
“Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
Comparing
Nonprofits

9. Donation Tax-Deductible Private Foundation Grants
Political Orgs
Examples
Alliance for Justice
LCV Education Fund
AFJ Action Campaign
LCV
Connected/SSF:
LCV PAC
Independent:
Emily’s List
Tax Treatment
Tax-Exempt
Donation Tax-Deductible
Private Foundation Grants
Lobbying Activities
Unlimited
Rare and usually taxable
Electoral Activities
Secondary Activity, Follow Federal and State Law
Usually Sole Activity
Limited
Collabor-ating
Cannot Support or Oppose a Candidate for Office

10. How much lobbying? How Much Lobbying?
“Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
How Much
Lobbying?

11. The “insubstantial part” test
What is “insubstantial”?
Default test
Activities-based
Lobbying not defined
Penalty
How Much
Lobbying?

12. The 501(h) Expenditure test
Dollar-based limits
One-time election – IRS Form 5768
Expenditures only
Definition of lobbying
Penalty less severe
How Much
Lobbying?

13. Calculating a limit under 501(h)
Calculate organization’s “exempt purpose expenditures” (usually annual expenditures)
Overall lobbying limit
Grassroots lobbying limit is 25% of overall limit
IPT-work with attorney on internal cap
501h-use simple formula
How Much
Lobbying?

14. $175,000 +10% of excess over $1 million
ANNUAL EXPENDITURES
OVERALL LOBBYING LIMIT
$500,000 or less
20%
$500,000 to $1 million
$100, % of excess over $500,000
$1 million to $1.5 million
$175, % of excess over $1 million
$1.5 million to $17 million
$225, % of excess over $1.5 million
Over $17 million
$1,000,000
How Much
Lobbying?

15. Example Total lobbying limits for 501(c)(3)s
making the 501(h) election
with annual expenditures of $500,000
IPT-work with attorney on internal cap
501h-use simple formula
How Much
Lobbying?
Overall Lobbying Limit
Grassroots Lobbying Limit
$100,000
$25,000

16. What is Lobbying? What is lobbying?
“Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
What is
lobbying?

17. Direct lobbying Communication The Special Legislator rule
Members of the public are legislators
Expressing a view about specific legislation
For purposes of ballot initiatives, bond measures, referenda, constitutional amendments—the general public are unpaid legislators.
What is
lobbying?

18. Grassroots lobbying Communication General Public
Expressing a view about specific legislation
Call to Action
Does not apply to ballot measures
As I stated earlier, ballot measures are legislative proposals that are submitted to the voters for approval. For that reason, ballot measure activity is treated as lobbying under federal tax law.
Ballot measures include both initiatives (which are qualified for the ballot by petition) and legislative measures placed on the ballot by either a state or local legislature.
Initiatives become “measures” that count against an organizations lobbying limit as soon as you start circulation of the measure.
Organizing staff to gather signatures for the initiative/referendum petition
Gathering signatures
Support/ Opposing the qualification of a measure – including decline to sign efforts
Voter Registration and GOTV
For measures placed on the ballot by legislators, you count your efforts to draft or negotiate the language with a legislator.
Some expenses before petitions start circulating may also count as lobbying if the organization makes the expenditure in order to help qualify the measure if the primary purpose for the activity is to engage in lobbying. See page 26 of Seize the Initiative for more information on this.
What is
lobbying?

19. Lobbying exceptions Nonpartisan analysis, study, or research
Request for technical assistance
Self defense
Examinations and discussions of broad social, economic, and similar problems
“Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
Exceptions

20. Nonpartisan analysis MUST SHOULD Full and Fair Discussion
Broadly Disseminated
SHOULD
Avoid directly encouraging recipients to vote for or against measure
The Facts: Californians have a lot of important decisions to make on election day, November 8. Before you vote, be sure you get the facts. Proposition 188 is a good example. Do you know what will happen if it passes? Do you know who’s behind it? Who opposes it? Who the major contributors are on each side? You have the right to know about Proposition Read your official voter handbook before you decide.
This is a communication Greg Colvin concluded met the definition of a nonpartisan analysis report. Took the voter guide and annotated it with additional information, included top donors to each side, included this paragraph. Will depend upon facts and circumstances and should consult with attorney.
Exceptions

21. Technical assistance MUST MAY
Invitation in writing on behalf of Body or Committee
Available to all members of Body or Committee
MAY
Express a view on specific legislation
If the legislature is placing the measure on the ballot.
Exceptions

22. Nonpartisan advocacy Advocacy “Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
Advocacy

23. No support or opposition for candidates running for public office
Nonpartisan Advocacy
No support or opposition for candidates running for public office
Do not ALIGN stance with candidate/parties
Be cautious in joining COALITIONS doing non-(c)(3) permissible work
Advocacy

24. Nonpartisan electoral activities
Supporting/opposing Ballot Measures
Issue Advocacy
Advocating for organizations issues during election year
Voter Education
Educating voters in a nonpartisan way about candidates
If the legislature is placing the measure on the ballot.
Nonpartisan
Activities

25. Nonpartisan activities (cont)
Voter Registration
Registering historically under-represented groups
May register to vote for or against a ballot measure
Individual & Business Activities
Ensuring partisan activities are not attributed to the organization
Advocacy Capacity
Increase the organization’s capacity by opening affiliated organization
If the legislature is placing the measure on the ballot.
Nonpartisan
Activities

26. Additional examples,

28. coordination Contribute Provide mailing list
Host a fundraising event (must inform donors that contributions are not tax deductible)
“Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
Nonpartisan
Activities

29. Campaign disclosure Disclosure “Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
Disclosure

30. “Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
Disclosure

31. BA guide to state lobbying thresholds
Disclosure

32. CA example
Disclosure

33. Questions? ?????? “Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
??????

34. resources Factsheets and Guides available from www.bolderadvocacy.org
“Full and fair” discussion of the issue
No direct call to action
Broad dissemination
Ok to express a view and list the members voting
Watch out for subsequent use rule—subsequently use for GR lobbying, presumption is initial reason is GR lobbying. Overcome by:
Initial distribution greater then anything that is done with it for lobbying
Older then 6 months old
No coordinating with other NP
Resources

35. AFJ Northern California Office:
Nonprofit Vote
2464 Massachusetts Ave
Suite 210
Cambridge, MA 02140
AFJ Washington DC HQ:
11 Dupont Circle NW, 2nd Floor Washington, DC Phone: (202) Fax: (202)
AFJ Northern California Office:
436 14th Street, Suite 425 Oakland, CA Phone: (510) Fax: (510)
AFJ Southern California Office:
1000 N. Alameda Street, Suite 340 Los Angeles, CA Phone: (213) Fax: (213)
AFJ Texas Office:
Alliance for The Grove 501 Elm Street, Suite 450 Dallas, Texas Phone: (214) 35