Staff and board members of section 501(c)(3) organizations can learn what’s allowed and what’s not – and, more importantly, how to leverage the rules to maximize their organizations’ advocacy. Savvy organizations that understand the rules can structure their advocacy strategically. Learn to make the most of your restricted grant funds and leverage the rules to win policy change for your communities.
Note from Allen Mattison:
On the webinar, I mentioned that small- to mid-sized section 501(c)(3) public charities should consider using what’s called the Section 501(h) Expenditure Test to measure their lobbying. To elect to use the 501(h) Expenditure Test, file IRS Form 5768 (a very simple, short form). If you file it, be sure to tell your accountant, so they can fill out your Form 990 Schedule C accordingly.
The 501(h) rules are helpful for small- to mid-sized groups because they provide very clear, specific definitions of lobbying, making it easier for your staff to understand whether a particular activity is lobbying or not. Importantly, these are the same definitions that foundation funders already use in your grants, meaning your staff already needs to follow those definitions to ensure compliance with grants. There are two other significant benefits: The 501(h) rules will allow the organization do to more lobbying, and it will mean that more of your advocacy will be treated as non-lobbying.
- More lobbying – The 501(h) rules set specific dollar limits on how much a 501(c)(3) public charity may spend on lobbying. The attached spreadsheet can help you calculate the lobbying cap for your organization under the 501(h) rules. For example, an organization that spends $1 million annually on its overall program activities may spend up to $175,000 on lobbying under the 501(h) rules; under the other set of IRS lobbying rules, in comparison, the general rule of thumb is to spend no more than 3-5% on lobbying, or no more than $50,000. That’s a big difference.
- More non-lobbying activity – As I explained in the webinar, the 501(h) rules allow you to treat lots of public communications about legislation as non-lobbying activity, if you exclude a “call to action.” But under the Insubstantial Part Test, these would be lobbying expenses.
So it’s simpler for staff to use the 501(h) definitions, and the organization can engage in far more advocacy (both lobbying and non-lobbying activity). Talk to your organization’s lawyer about whether using the 501(h) definitions is the right move for your organization.
Staff in government agencies are uniquely positioned with deep expertise on key public-policy issues, but various laws and regulations restrict how they can engage in policy-change campaigns. This session will examine how government employees can safely be involved with efforts to influence policy.
- The Collective Impact Forum supports community-centered solutions to strengthen collaboration, advance equity, and improve lives. The Forum provides resources, hosts learning events, and offers coaching that can help advance place-based collaborative work. To learn with us, please join the 2024 Collective Impact Action Summit, online April 30 – May 2, 2024.
- Please email jennifer.juster@fsg.org if you have any questions about the Collective Impact Forum.
- The National Collaborative for Infants & Toddlers (NCIT) is education and advocacy movement bringing together organizations and individuals across the US who want to improve the health and well-being of infants, toddlers, expectant parents, their families, and caregivers. Using policy advocacy as its tool, the NCIT supports federal state, local, and tribal efforts to pass effective policies and to maximize public investments in PN-3 systems.
- Please email Andrea.Guarnero@heart.org if you have any questions about the NCIT.
- The Help Me Grow Model is the only evidence-based early childhood system model existing nationwide, providing a unique framework to implement comprehensive, cross-sector, coordinated, effective early childhood systems that promote equity and strengthen family resilience and protective factors. Help Me Grow supports communities in leveraging and building upon existing resources in order to develop and enhance a comprehensive system of care for all families with young children.
- Please email Nadia King at nking01@connecticutchildrens.org if you have any questions about Help Me Grow.
Allen is a lawyer who represents nonprofit organizations on lobbying and campaign finance laws, corporate issues, and other challenges. He specializes in helping organizations understand the line between educational and lobbying activities. That way, nonprofit leaders can plan strategic advocacy campaigns that stretch their non-lobbying grant funds to have the biggest bang for the buck.
