11/20/2024

Nonprofit Advocacy from MSN Law

Drawing the line between permissible advocacy and forbidden lobbying

As a nonprofit organization, you may have heard that you are not allowed to engage in lobbying. However, this generalization greatly oversimplifies the matter. And, because of that oversimplification, some nonprofits wrongly assume that they cannot even take a stand on issues, whether current social issues or simply issues that are relevant to the organization’s mission and purpose.

What is lobbying?

​The Internal Revenue Service (IRS) defines lobbying as attempting to influence legislation. A 501(c)(3) organization risks losing its tax-exempt status if a substantial part of its activities is attempting to influence legislation. “Attempting to influence legislation” means (i) contacting, or urging the public to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation, or (ii) advocating the adoption or rejection of legislation. Organizations may, however, get involved in public policy issues without the activity being considered “lobbying."

For example, organizations may conduct educational meetings, prepare and distribute informational materials, or otherwise consider public policy issues in an educational manner without jeopardizing their tax-exempt status.

Please select this link to read the complete article from Maritza S. Nelson Law Office.