Lobbying Guidelines
Yes, you can lobby! Affiliates are often hesitant to participate in our advocacy activities because they're unsure about the rules that govern lobbying activities for 501(c)(3) organizations. NCTC can help you understand these rules.
Here's a breakdown of the rules:
What is advocacy?
Advocacy
is a broad term that describes many different kinds of activities,
including organizing, educating legislators, attending a rally, public
education, training and lobbying. Lobbying is just one type of advocacy
activity.
As a 501(c)(3), can a nonprofit lobby?
YES!
As a 501(c)(3) you are legally able to lobby. While you may have some
foundation or government funding that restricts lobbying activities,
you are able to use other funds to lobby.
How do I determine my lobbying limits?
There
are two different sets of rules for measuring your lobbying limits.
Organizations that have filed IRS Form 5768 follow the 501(h)
expenditure test while all other nonprofits follow the “insubstantial
part” test.
- 501(h) Expenditure Test: If you have filed the simple IRS Form 5768, then lobbying guidelines set by the IRS are more specific and straightforward. The IRS defines lobbying and provides a dollar-based limit. We recommend you take 10 minutes and submit the IRS Form 5768. Alliance for Justice explains the 501(h) expenditure test and the dollar-based limits determined by your organization's budget.
- Insubstantial Part Test: This is also known as the “default test” because all 501(c)(3) organizations that have not filed IRS Form 5768 automatically fall into this category. The insubstantial test means that you cannot make lobbying a “substantial part” of what you do. No specific guidelines are provided.
What is direct lobbying?
Lobbying refers to any activity that involves direct communication with a legislator about specific legislation. The activity must involve all three of these things in order to be considered lobbying. The size of your organization's budget determines the amount of money that can be spent on direct lobbying.
What is grassroots lobbying?
Grassroots lobbying involves a call to action directed at the general public about specific legislation. If your organization is simply educating the public about an issue without a call to action, then it is not considered grassroots lobbying. For organizations that elected the 501(h) expenditure test, grassroots lobbying cannot exceed 25% of your overall lobbying activities.
More Information
Alliance for Justice provides additional information about lobbying rules for nonprofits.
If you did not find an answer to your question, contact:
Gail Parson, Manager, Civic Engagement
Phone 312.252.0280 x297
E-mail gparson@economicprogress.org
