Attempts to Influence Legislation by 501(c)(3)
organizations:
501(c)(3) organizations are allowed to influence legislation to some degree
(see below), but severe restrictions apply. "Legislation" is broadly defined to
include federal, state, and local laws (for example, city councils ordinances),
referenda, foreign legislation, and even the confirmation of judges.
There are two ways a non-profit might influence legislation. "Direct
lobbying" is an appeal to the legislature in support or opposition of a specific
piece of legislation. For example, an appeal to the Senate to approve the Kyoto
Treaty is "direct lobbying." A general appeal "to protect the environment" is
not lobbying (and not subject to any limits).
"Grassroots lobbying," on the other hand, attempts to influence legislation
by changing public opinion. These activities are only restricted if the
non-profit refers to specific legislation, communicates a view on such
legislation, and urges recipients to take action with respect to such
legislation (i.e., "call your congressperson", "mail this postcard," etc.).
If the activity is an attempt to influence legislation, non-profits may
engage in such activity if within proper limits. For 501(c)(3) organizations,
attempts to influence legislation must be "less than substantial." Because "less
than substantial" is a vague test, (501)(c)(3) organizations can elect a strict
mathematical test to apply. If the proper documents have been filed in advance,
the non-profit may devote up to 25% of their expenditures to such activities
(less for organizations raising more than $500,000 annually).
Support of Non-Profits by Others:
These restrictions only apply to the non-profits. You do not need to
be concerned with the question of whether your contribution complies. That is
the responsibility of Informed Citizens. Also; There is no reason why a
candidate cannot support a non-profit organization.
All charities are regulated except for churches, certain
church-affiliated organizations, and the very smallest groups—those that
expect to receive no more than $5, 000 a year in income Federal law also
requires charities that normally receive more than $25,000 a year in revenue to
file an annual information return (Form 990 or Form 990-PF) with the Internal
Revenue Service. Again, churches and church-affiliated organizations are exempt
from this requirement.
Informed Citizens has not applied with the IRS because we expect to
receive less than $5,000 this year. We will make application with the IRS if and
when it appears the donations we will be receiving in any one year will
start to exceed $5,000.
