Political Activism & Lobbying for California Nonprofits
Most nonprofits don’t realize they can engage politically – with restrictions.
Can your 501(c)(3) or 501(c)(4) engage in political activism or lobbying?
Or is your central mission so campaign-oriented that you should you form a 527?
This page provides helpful resources for nonprofit founders, board members & executives wondering about the laws restricting nonprofit activism in California.
A myriad of rules govern nonprofit lobbying, organizing, and spending, and the rules are applied differently to each nonprofit type.
Tuple Legal helps both nonprofits and social enterprises advocate for causes without threatening their tax-exempt status.
Why should you consult an attorney before commencing political activity?
You should consult an experienced political and nonprofit attorney before commencing any political activity.
An attorney can help make sure you don’t run afoul of federal law and IRS rules.
Breaking those rules, such as by engaging in prohibited political activity, can be grounds for revocation of your hard-won tax-exempt status.
Contrary to popular belief, all nonprofits may be involved in the political process, but how politically involved varies by tax status, the type of political activity, and the amount spent on political activity.
How Can Nonprofits Be Politically Involved?
The IRS looks at political activity in three broad categories. The category a nonprofit organization’s political activity falls under determines how much activity it may conduct (if any).
For example: a 501(c)(3) is prohibited from supporting or opposing candidates, whether financially (by making campaign contributions) or verbally (by making verbal or written statements for or against any candidate).
Meanwhile, a 501(c)(4) may support or oppose candidates, as long as those activities do not constitute the nonprofit’s primary activity.
A 527 organization may spend an unlimited amount on supporting or endorsing candidates, but is subject to a host of disclosure requirements about its donors and expenditures.
What if influencing politics isn’t my primary mission, but I still want to be politically involved?
Nonprofits have more latitude to be politically active than you might think — but, every nonprofit type would benefit from legal counsel in order to stay within the strict and sometimes confusing regulations for engaging politically.
Depending on your tax status, the type of political activity, and the amount spent on political activity, you may have a number of options to engage politically already.
Even if the type of activity you want to conduct is outside the bounds of what you can achieve with your current tax status, you may have other options. For example, it might make sense to establish a separate, affiliated organization with a different tax status that would allow you to achieve your political goals.
Tuple can help your organization chart the right course of action.
What if influencing candidate elections is my organization’s primary goal?
If influencing elections and politicians is your nonprofit’s central mission, forming a 527 nonprofit organization may be the most logical tax status — but you should absolutely consult with an attorney about your planned activities before making that determination, as 527s are subject to many rules and regulations that don’t apply to other nonprofit types.
A 527 organization may raise and spend unlimited funds for its activities supporting or opposing candidates (subject to a host of campaign finance laws). But, the IRS restricts how much 527 organizations may spend on lobbying activities. 527s must also abide by complicated reporting and disclosure requirements.
Compliance is especially crucial for 527s because your opponents — the stakeholders on the other side of an election — will likely scrutinize your disclosures.
Federal law groups political activity into these three categories:
Supporting or Opposing Candidates
Political activities that support or oppose candidates for office, or “political campaign intervention,” includes, among other things:
- Directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office
- Contributing to political campaign funds
- Making public statements on behalf of an organization in favor of or in opposition to any candidate for public office
- Voter education or registration activities with evidence of bias that favors one candidate, opposes a candidate in some manner, or has the effect of favoring a candidate or group of candidates
Lobbying or Advocating for a Change in Law
(Federal, State, or Local)
Legislative activities, more commonly known as lobbying, includes attempts to influence legislation and advocate in ballot measure campaigns.
Under IRS rules, an organization attempts to influence legislation if it:
- Contacts, or urges the public to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation, or
- Advocates the adoption or rejection of legislation.
Voter Education &
Nonpartisan Activities
Some political activity has few restrictions if conducted in a nonpartisan manner. One such activity is pure voter education, such as organizing public forums or publishing voter education guides about issues or candidates in an evenhanded, nonpartisan manner.
Additionally, activities intended to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, are not prohibited political campaign activity if conducted in an evenhanded, nonpartisan manner.
Nonprofit organizations – and their staff – should always review their voter education and nonpartisan political activities with counsel to ensure they don’t inadvertently: 1) support or oppose a candidate or 2) spend beyond a permissible amount for lobbying.
Tuple Legal helps established nonprofits, new founders, and social enterprises
Here is a short list of our services for nonprofits and related organizations engaging in political activism.
Timely Reporting & Filing
Reporting requirements vary based on your nonprofit type, the nature of your political activism, and which campaign finance laws are applicable.
Protect Your Tax-Exempt Status
Once revoked, regaining tax-exempt status is often a lengthy, stressful, expensive process. Tuple helps you stay compliant.
Political Speech Guidelines
Federal tax law doesn’t just regulate how nonprofits spend their money – for example, mere political statements by a 501(c)(3)’s Executive Director can constitute off-limits campaigning.
Training Staff & Board Members
Tuple can help educate your employees, board members, and volunteers about which political activities are permissible vs prohibited. We can also develop your social media & activism policies.
Preparing to Lobby
The rules for lobbying and ballot measures are particularly complex, and the penalties for noncompliance are strict. We’ll help you get started and provide ongoing logistical and legal advice as you grow.
Avoid Reputational Damage
Scrutiny from the Attorney General, IRS, or your opposition can damage your organization’s reputation – and the cause or candidate you’re championing. It can also make it more difficult to attract and retain donors, volunteers, and sponsors.