01/18/2024

Walking a Fine Line

Lobbying and not-for-profit organizations

There exists a common misconception that not-for-profit organizations are strictly banned from lobbying for political, environmental, or other social issues. While these organizations are not banned from such activities, there are certain guidelines and boundaries that they must consider.

Generally, not-for-profits may not qualify for tax exemption if a substantial part of their activities are attempting to influence legislation. The definition of legislation is complex. According to the Internal Revenue Service (IRS), it includes:

1. Any action by Congress or any state legislature, local council or similar governing body regarding acts, bills, resolutions, or similar items, or
2. Acts by the public in referendum, ballot initiative, constitutional amendment, or similar procedure.

Unfortunately, there is no bright-line test to follow. For example, when a hot-button issue spreads though Washington, D.C., nonprofits cannot rely on definitive guidelines for being treated as lobbyists.

Please select this link to read the complete article from OSAP Mission Partner Clark Schaefer Hackett (CSH).