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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
LOBBYING ORGANIZINGISSUE
EDUCATION
Nonprofits are legally permitted to engage in all of these activities
GLA Advocacy 5.07
1. 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, emails, 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 5.07
1. 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 $500,00015% of next $500,00010% 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 limitformula:
25% of total lobbying limit
application for total budget of $2 million
$ 250,000 total limitX .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 www.afj.org
**Staff technical assistance attorneys are available at no cost to answer questions.
Center for Lobbying in the Public
Interest www.clpi.org
