Nonprofit Advocacy Workshop at NSC Budget Forum

Advocating for Missouri Families

Cande IvesonMissouri Budget Project

www.mobudget.org

Nonprofit Advocacy

Advocacy is speaking on behalf of others who are unable to speak for

themselves

You are a voice for your constituents

You are the only voice for your mission

Nonprofit Advocacy

501(c)(3) organizations (public charities) can and should advocate

You already advocate for you clients

You should advocate for public policies that support those clients and further your mission

Nonprofit Advocacy

Advocacy includes

Education, anytime, anywhere, on specific issues

Lobbying

Nonprofit Advocacy

Direct Lobbying

Communication

With a legislator

Expressing a view about specific legislation

OR ballot measure activity

Nonprofit Advocacy

Grassroots (Indirect) Lobbying

Communication

With the public (does not include members)

Expressing a view about specific legislation

That includes a call to action

Nonprofit Advocacy

Things that are NOT lobbying

Education, including preparation of policy analyses

Activities related to ballot measures

Advocacy related to the survival of the organization

Nonprofit Advocacy

501(c)(3) organizations (public charities) can and should lobby

the “insubstantial parts test”

the “expenditure test”

except for private foundations (where lobbying expenses become taxable)

Nonprofit Advocacy

The “insubstantial parts test”

Is the default, requiring no action on your part

Allows lobbying as long as that activity (or related expenditures) do not become a “substantial” part of overall activities

Is undefined and case law is unclear

Nonprofit Advocacy

The “expenditure test”

You must elect this option by filing IRS Form 5768 (less than ½ page)

Sets a clear dollar limit on direct and grassroots lobbying expenditures

Nonprofit Advocacy

Expenditure test limits

Organizations that spend less than $500,000 per year can spend 20% of budget on lobbying

Larger organizations

plus 15% of the next $500,000

plus 10% of the next $500,000

plus 5% of anything additional

Nonprofit Advocacy

Expenditure test limits

Maximum of one-quarter of lobbying expenditures on grassroots lobbying

Or the entire amount on direct lobbying

More than that? Consider 501(c)(4) status!

Nonprofit Advocacy

Things you CAN’T do

Engage in electoral politics

Endorse candidates

You certainly MAY do those things as a private citizen!

www.nonprofitservices.org www.mobudget.org