1. Advocacy 101: How Foundations Can/ Cannot Engage in Public Policy and Advocacy Andrew Schulz VP Legal & Public Policy Council on Foundations

2. Agenda Legal Issues Public Policy as a Strategy Readiness for Public Policy Work

3. Legal Issues

4. Lobbying Private Foundations may: – Engage in legislative communications – Nonpartisan analysis, study or research – Self-defense communications – Communicate with government officials about projects funded jointly

5. Lobbying continued Private Foundations may not: – Engage in lobbying as defined by the IRS without incurring prohibitive taxable expenditures – i.e., supporting or opposing specific legislation directly to a legislative body or indirectly through a public call to action.

6. Direct Lobbying Communication With a legislator Expressing a view About specific legislation 6

7. Grassroots Lobbying Communication With the general public Expressing a view About specific legislation Including a call to action 7

8. Legislators Defined Federal, state & local level representatives and their staff Executive officials when participating in formulation of legislation The public, if it is a ballot measure Not members of special purpose boards (planning commissions, zoning commissions, school board) 8

9. Advocacy Non-lobbying – Regulatory work – Litigation – Talking to legislators about your foundation’s work Lobbying – Asking legislative staff to support funding for local homeless shelter – Asking public to ask County Council members to support increased taxes for education 9

10. What is not lobbying? Activity that does not meet the definition (direct or grassroots) Regulatory exceptions: – Examinations and discussions of broad social, economic, and similar problems – Nonpartisan analysis, study, or research – Requests for technical advice or assistance – Self-defense 10

11. Required elements: – Full and fair discussion of the facts – Report may advocate a position on an issue – May discuss legislative issues – May not directly call the recipient to action – Appropriate distribution 11 Nonpartisan Research/Analysis

12. Self-Defense May express a view to legislators about issues affecting the charity’s: – existence – tax-exempt status – powers and duties – the deductibility of contributions Can be used proactively Not applicable to grassroots lobbying 12

13. Funding Advocacy Not required to prohibit the use of grant funds for lobbying unless grant requires “expenditure responsibility”* General support grants to public charities not considered lobbying expenses unless earmarked for lobbying 13

14. Funding Advocacy Specific project grants to public charities that lobby are not lobbying if: – Fund up to the non-lobbying amount of the project budget – Reasonable reliance on budget from grantee is permitted – Grant not earmarked for the lobbying activity 14

15. Public Policy as a Strategy

16. Why Engage in Public Policy? It’s the mission It’s enlightened self-interest It’s solving social problems It’s democracy It’s relationship building

17. Resistance It can’t be legal Inappropriate for us, too public Can’t make a difference Lack capacity, time, expertise or resources Reputation Takes too long Results aren’t measurable

18. Benefits Advances mission Leverages grant funds Increases impact Solidifies relationships Builds credibility & legitimacy Distinguishes from the crowd 18

19. Readiness for Policy Work

20. Building Blocks 20 D. Understanding and skills A. Values, culture, and will C. Resources B. Relationships

21. Values, Culture, and Will Dedicated to long-term and broadly-shared solutions Willing to use position of influence In for the long haul Willing to commit resources 21

22. Relationships Trusted, perceived as credible source Well-connected board and staff Established relationships in the community Relationships with policymakers 22

23. Resources Decision-making process Staff time Communication systems Internal knowledge management system Recordkeeping system Assessment process 23

24. Skills and Knowledge Facilitation skills Relationship-building skills Knowledge about policy context and players Policy skills Strategy development IRS rules Issue expertise 24

25. Getting Policy Expertise Hire experienced staff Develop in-house capacity through training, TA, mentoring, on-the-job experience Collaboration Grantees 25

26. Role of CEO, Board Members CEO’s set the tone for policy avenues Board members serve in the following advocacy roles: – Ambassadors – Door-openers – Cultivators – Closers

27. Choosing Issues Consider positions when: – Aligned with your mission. – You care about (passion). – Important to the community. – Foundation has expertise on the issues.

28. Timing Is a policy issue ripe for action? – What is the political context? – Do we have potential partners? – What is public sentiment? – Is there a viable solution? – Is the policy making window open?

30. Resources - Publications

31. Questions?

32. Thank you!