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What a 501(c)(3) can do on elections
and lobbying
Note: this is meant as a general guide, not as legal advice. 501(c)(4)
organizations have different rules.
In the face
of confusing IRS regulations and lengthy, legalistic explanations, nonprofit
organizations often either avoid elections like the plague or simply ignore
IRS rules. Hopefully, this overview will help organizations get involved
in elections and lobbying as the law allows.
The general
rule on elections: 501(c)(3) organizations cannot advocate on behalf
of a particular candidate, but can do general education. Organizations
can advocate on ballot measures, as long as it is a small portion of their
total work.
The general
rule on lobbying: 501(c)(3) organizations can lobby as long as it
is a small portion of their work.
Elections
501(c)(3)
organizations can:
Publish
a record of votes by incumbents. If it is distributed widely, it must
cover a broad range of issues. If distributed only to members and
not only right before elections, it can be narrow and indicate if
the legislator voted in accordance with the 501(c)(3)’s views,
but otherwise cannot contain editorial comment.
Publish
a voter guide comparing candidates. It must cover a wide variety of
issues and be written in unbiased language. The group cannot target
the distribution of the guide to influence an election.
Distribute
the results of a candidate questionnaire. The questionnaire must be
sent to all candidates for the office and cover a broad range of issues
in unbiased language.
Hold
a public forum or debate. Again, invite everyone, and cover a broad
range of issues in unbiased language.
Encourage
people to register and to vote. This cannot be geographically targeted
by viewpoint and cannot be coordinated with a political party or candidate.
501(c)(3)
organizations cannot:
Contribute
money or in-kind services, equipment, or space to candidates, parties,
or candidate PACs.
Endorse
candidates. However, individuals can endorse candidates and use the
organization’s name for identification purposes.
Publish
or distribute statements for or against a candidate.
Lobbying
The IRS defines
lobbying in a very particular way. Generally, "lobbying" refers
to communications intended to influence specific legislation (including
introduced legislation and specific proposed legislation).
Lobbying
includes:
Communications
to legislators, legislative employees, or government employees who
can help formulate legislation which refers to a specific piece of
legislation and expresses a view on that legislation.
Communications
to members or the public that refers to specific legislation, reflects
a view on the legislation, and directly encourages action.
Mass
media communications made within two weeks of a vote on legislation,
reflecting a view and either referring to legislation or calling for
action.
Communications
about ballot measures after signatures have started being collected.
Lobbying
does not include:
Actions
by judicial, executive, and administrative bodies.
Nonpartisan
analysis, study, or research (which can take a viewpoint, but must
provide a full and fair description of the underlying facts).
Examinations
and discussions of broad societal problems.
Testimony
invited in writing and sent to all members of the requesting body.
- Self-defense
communications (about the organization’s existence, powers, tax
status, etc.)
How Much
Lobbying Nonprofits Can Do
501(c)(3)
organizations can spend up to 20% of their money on lobbying if they have
filed for the 501(h) election and have an annual budget of less than $500,000.
If they have not filed for the 501(h) election, they can spend only an
"insubstantial" (generally thought to be less than 5%) part
of their budget.
However,
for 501(h) electees, only 25% of their total lobbying (i.e. 5% of their
budget) can be spent on "grassroots" lobbying of the public,
as opposed to "direct" lobbying of their members or legislators.
All ballot measure lobbying is considered "direct" as the public
are the decision-makers.
Further publications
on these issues are available from 1000 Friends.
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