Advocacy versus Lobbying
MHA Publick Occurrences -- January 28, 2020
Advocacy for Non-Profits: the rules
We are frequently asked this question: We are a non-profit, doesn’t that mean we cannot lobby for our interests at the Statehouse or to our Town? What are the rules that govern these activities?
The MHA Advocacy Team has done the research and reports out:
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- Advocacy is not the same as lobbying. Lobbying is one form of advocacy that often involves persuading legislators to enact or vote down a bill.
- Lobbying can be undertaken by tax-exempt organizations, with no risk to their 501(c)3 status, as long as it is not a substantial part of their organization’s activities.
- “Substantial” is generally considered to be more than 5% of the organization’s total activities or more than 20% of its expenditures.
- Individuals advocating on their own and not as representatives of tax-exempt organizations face no penalties.
Advocacy efforts that do not present a risk to an organization’s tax-exempt status include:
- Educating policymakers and the public about broad social issues
- Organizing communities, encouraging people to vote and educating voters about candidate
positions. - Attempts to make an administrative agency of the government change its policies, rules or regulations should be presented as educational efforts, to avoid being considered lobbying.
More detailed information can be found here:
IRS Guidance
Political Campaign Activities – Risks to Tax-Exempt Status from the National Council of Nonprofits