Frequently Asked Questions
Lobbying and Advocacy
Can charities lobby?
Absolutely nonprofits may, and SHOULD, make sure that their voices are heard on legislative and public policy matters that are germane to the nonprofit’s mission or to those the nonprofit serves. IRS regulations flat-out prohibit nonprofits from supporting or opposing any candidates for public office, but nonprofits may engage in voter education efforts and hold forums where the merits of various legislative initiatives are debated. Nonprofits with tax-exemption under Section 501(c)(3) also may, within limitations, attempt to influence legislation (lobby), such as by contacting lawmakers directly and by encouraging the nonprofit’s stakeholders to contact their representatives in government (this is known as “grass roots lobbying”). 501(c)(4) organizations may engage in unlimited lobbying. Lobbying may not, however, become more than an insubstantial part of a 501(c)(3)’s overall activities. Unfortunately, there is no bright line to define what is more than “insubstantial.” Many charities elect to have their lobbying activities evaluated by the IRS based on the amount of money they spend on lobbying rather than on how “substantial” or “insubstantial” their lobbying activities were in a given year. This is known as the “501H Election.” You can find more information about limitations on lobbying and the benefits of the 501H election at the web site of Alliance for Justice, www.afj.org.