Non-Profits can legally lobby, and they should
Many charitable nonprofits can lobby within legal limits. Understanding the rules and defining a clear budget can help organizations explore professional advocacy and give their missions a voice in public policy.
Written by
Parker White
A common misconception is that charitable nonprofits cannot hire lobbyists without jeopardizing their tax-exempt status.
Federal law explicitly permits most 501(c)(3) public charities to engage in limited lobbying.
The IRS also provides an optional framework, known as the 501(h) election, that allows eligible organizations to calculate permissible lobbying expenditures using clearly defined financial thresholds.
Under this framework, an eligible nonprofit with $100,000 in qualifying exempt-purpose expenditures may generally spend up to $20,000 on lobbying within the applicable expenditure limits.
That figure is a legal ceiling under the election, not a recommendation to spend anywhere near that amount. And it’s worth mentioning that additional rules apply, including restrictions on grassroots lobbying and the use of certain funding sources.
However, for nonprofit leaders who have avoided advocacy because of uncertainty surrounding the law, understanding these rules can open significant opportunities.
Historically, finding a lobbyist often depended on personal relationships, professional networks, or referrals from organizations already active in politics.For a small nonprofit without those connections, simply knowing where to begin could be a barrier.
Civalta helps address that problem.
Through Civalta, nonprofit organizations can post a scope of work describing their policy needs at no cost and seek proposals from lobbyists interested in providing representation.
Organizations can define their priorities, establish a budget, and evaluate potential representation before committing to an engagement. Thus allowing nonprofits to explore the market and discover what professional advocacy could realistically cost.
Your mission deserves a voice. Nonprofit leaders are accustomed to stretching every dollar. They carefully evaluate staff positions, fundraising campaigns, program expenditures, and operational investments.
Professional advocacy deserves consideration within that same framework.
A lobbyist who helps an organization understand legislation, engage policymakers, protect a funding stream, or advance a policy priority can create value extending across the organization's mission.
The first step costs nothing.
Visit Civalta and post your organization's lobbying needs for free. Discover how affordable professional advocacy could be for your mission.