Help protect your rights

Protecting and Expanding Nonprofit Advocacy Rights

An important part of CLPI's mission is to protect civic participation by charitable nonprofits, including lobbying and nonpartisan voter activities. Nonprofit engagement in the democratic process allows 501(c)(3)s to educate their communities and policymakers on issues relevant to their causes. The contribution of nonprofit voices to the public policymaking process results in a stronger and more just democracy, and enables nonprofits to better achieve their missions. CLPI works in coalition with other organizations to prevent the erosion of nonprofit advocacy rights and to make lobby and nonpartisan voter engagement easier and more accepted.

Issues that CLPI may work on in the future include making the 501(h) expenditure test the default standard for small to mid-size charitable nonprofits (other than religious institutions). Right now the default standard is the vague “substantial part” test, which provides little guidance or security for charities and entails greater reporting burdens. CLPI also seeks to increase and index the overall lobbying limits under the 501(h) test, which was enacted in 1976 and has not been adjusted for inflation. CLPI also will examine other ways to reduce the confusion and burdens under current rules such as harmonizing the different definitions of lobbying in federal and state laws and providing bright line standards for determining permissible nonpartisan voter activities.

The Nonprofit Advocacy Coalition

In the past, CLPI has helped to convene a coalition that has included the Alliance for Justice, National Committee for Responsive Philanthropy, National Council of Nonprofit Associations, and OMB Watch to counter threats to 501(c)(3) nonprofits' ability to actively engage in the public policy process. The coalition monitored the nonprofit and political environment to ensure that 501(c)(3) nonprofits maintain their right and ability to speak to elected officials and the public on policy issues relevant to their missions and those they serve. CLPI will continue to oppose any divide and conquer strategy that would seek to pit direct service against advocacy when the two go hand in hand in high-impact nonprofits.

LOBBYING AND OPEN GOVERNMENT

Spring 2008 Congressional Update on Nonprofit Advocacy Issues

CLPI has had the good fortune of working with 501(c) Strategies on nonprofit advocacy lobbying efforts. The following is an update on Congressional issues related to nonprofit advocacy written by Perry Wasserman of 501(c) Strategies in the spring of 2008.

*Link to Congressional Update word doc*

CLPI and OMB Watch Comments on New 990 Form Instructions

In May, 2008, OMB Watch and CLPI filed joint comments to the IRS on the instructions for the new 990 forms. The comments focus on the instructions for Schedule C that relates to reporting on nonprofit lobbying and political activities.

Government Transparency – Posting Recorded Committee Votes

In April, 2008, CLPI joined in letters to the House and Senate calling for the online posting of recorded committee votes within 24 hours of such votes being cast. Citizens for Responsibility and Ethics in Washington coordinated this effort.

Nonprofit Lobby Simplification Coalition

For a few years, CLPI has convened a Nonprofit Lobby Simplification Coalition, which was a "left/right" coalition of public charities (501(c)(3) nonprofits) lobbying for a provision that would simplify the lobbying rules *hyperlink to The Law* for such organizations. Currently, 501(c)(3) nonprofits must keep two sets of records of their lobbying expenditures: one for their direct lobbying expenditures and another for their grassroots lobbying expenditures. Having to keep two sets of records increases administrative confusion and compliance burdens. As a consequence, this burden deters public charities from working towards their missions through engagement in the public policy process, particularly for small, local public charities.

The Nonprofit Lobby Simplification provision would eliminate the 1/4 cap on grassroots lobbying expenditures. While still leaving public disclosure of lobbying expenditures by public charities in place, the provision would lead to more accurate recordkeeping and public reporting by 501(c)(3) nonprofits and would improve IRS oversight and enforcement of the overall nonprofit lobbying limit. As a result, public charities will be more likely to use legislative advocacy as an effective tool for achieving their missions and serving their communities.

The provision has been endorsed in the past by charities spanning the ideological spectrum, including YMCA of the USA, American Heart Association, Goodwill Industries International, Family Research Council, National Audubon Society, Focus on the Family, Alliance for Justice, Independent Sector, Center for Lobbying in the Public Interest, National Council of La Raza, Concerned Women for America, National Council of Nonprofit Associations, OMB Watch, and United Way of America.

• Testimony: Statement of former CLPI President Elizabeth M. Heagy, Esq. - November 16, 2005

CLPI Comments on Proposed FEC Rulemaking

In August 2005, the Federal Election Commission (FEC) issued a Notice of Proposed Rulemaking. The proposed rules, meant to regulate federal campaign finance, could severely limit the ability of nonprofits to use broadcast media for advocacy and to encourage citizen participation in public policy debates. Specifically, the FEC is reviewing rules that exempt 501(c)(3) organizations from a provision meant to limit campaign attack ads funded with soft money. View CLPI's comments to the FEC on the proposed rulemaking and view this article by OMB Watch for a more detailed description of the issue.

NONPARTISAN VOTER ENGAGEMENT

Many nonprofits and the public are not aware that charities may engage in a wide range of nonpartisan voter activities. Such nonpartisan activities include voter registration in historically underserved communities, get-out-the-vote (GOTV) activities, legislative scorecards, voter guides and issue advocacy

Unfortunately, the IRS does not provide much in the way of bright line rules to inform charitable nonprofits about what they can and can not do in this area. As a result, charities often steer far clear of any nonprofit voter activities or have to incur steep legal expenses before doing so. This infringes on fundamental First Amendment freedoms and the ability of nonprofits to engage more fully in the democratic process.

CLPI is working as part of a coalition effort led by OMB Watch to clarify and create bright line nonpartisan voter engagement rules so that nonprofits and their constituents can safely participate in our democracy.

See 2008 OMB Watch comments to the IRS on Guidance Priorities