1. Lobbying and Nonprofits
Sonya Durney
LIS 437
Creating Social Change:

2. [Charities] represent the public in many important areas such as health, education,
and the environment. These groups have much information to contribute and a wide
range of helpful experience that could greatly assist the consideration and enactment
of this country's laws.

Senator Nelson (D-WI)

119 Cong. Rec. 5749 (1973)
3. Objectives:
Discuss
lobbying
treasury regulations
foundations vs. charities
When is lobbying is allowed?
Highlight some interesting points in history
All the while avoiding legal jargon!
4. Definitions:

Lobbying - communications intended to influence specific legislation.

5. Legislation - action by a legislative body; introduction, amendment, enactment, defeat or repeal of Acts, bills, resolutions, etc. 6. Legislative bodies - Congress, state and local legislatures, and the general public (referenda, initiatives, or proposed constitutional amendments) 7. Typically, they are not judicial, executive and administrative bodies such as school and zoning boardsLobbying.yes you can!
8.

Direct lobbying -an attempt to influence legislation by stating a position on specific legislation to legislators or other government employees who participate in the formulation of legislation, or urging your members to do so

9. Grassroots lobbying -an attempt to influence legislation by stating a position on specific legislation to the general public and asking them to contact legislators or other government employees who participate in the formulation of legislation. Lobbying defined
10.

providing technical assistance or advice to a legislative body in response to a written request

11. making available nonpartisan analysis, study or research 12. providing discussions of broad, social, or economic problems 13. Self defense (communicating with a legislative body regarding matters which might affect the existence of your organization) 14. updating the members of your organization on the status of legislation, WITHOUT a call to action. Lobbying is NOT
15.

Section 7805 of the Internal Revenue Code gives the United States Secretary of the Treasury the power to create the necessary rules and regulations for enforcing the Internal Revenue Code (IRC)

16. These regulations, also known as the Income Tax Regulations, are located in Title 26 of the Code of Federal Regulations (C.F.R.) 17. The regulations are organized according to the Internal Revenue Code section that a regulation interprets. Treasury Regulations
18. Private Foundations
Usually get funding from a single family or corporation
Whereas, charities receive funds from a variety of sources
Subject to more stringent IRC rules
Allowed to give grants to lobbying charities, but must follow clear guidance provided.
19. History
20. We currently recognize:
responsible representative Government requires public awareness of the efforts of paid lobbyists to influence the public decision making process in both the legislative and executive branches of the Federal Government
2 U.S.C. 1601
21. "Congress shall make no law abridging the right of the people peaceably to petition the Government for a redress of grievances."
Too much disclosure stifles with red tape and has a chilling effect on free speech.- Sen. Chiles (D-Fla)
1st Amendment
22.

501(c)(3) which provided free medical services to married women, and collected and distributed information about birth control

23. Sought to enlist the support and cooperation of legislators in repealing and amending statutes preventing birth control 24. Regulations provided that organizations formed to disseminate controversial or partisan propaganda were not educational within the meaning of the statute: 25. Treas. Reg. 45, art 517 (1919 ed.); T.D. 2831, 21 Treas. Dec. Int. Rev. 285 26. ABCL, therefore, did not meet lobbying qualifications (know as the Slee case)Margaret Sanger & The American Birth Control League
27. Operational Test
The organizations lobbying activities will be considered permissible if:
The purpose of the organization is charitable
The activities are not illegal, contrary to a clearly defined and established public policy, or in conflict with express statutory restrictions
The activities further the organizations exempt purpose and are reasonably related to the accomplishment of that purpose
28.

Prior to 1934 there were no specific statutory restrictions on the lobbying activities of charities. Legislative history is sparse.

29. Limits the lobbying activities of IRC 501(c)(3) organizations: 30. No substantial part of an organizations activities may constitute carrying on propaganda or otherwise attempting to influence legislation 31. Represents a codification of the Slee position and a rejection of the strict Treasury point of view, as embodied in the 1919 regulationRevenue Act of 1934
32. Federal Regulation of Lobbying Act (1946)
Required that lobbyists and the groups they represent register and report contributions and expenditures.
The legislation contained many loopholes
groups began to use the term "public education" to conceal monies spent on lobbying.
33. This time it's the Grand Canyon they want to flood. Should we also flood the Sistine Chapel so tourists can get nearer the ceiling?
The Sierra Club
34. 501(c)(3) to 501(c)(4)
35. Insubstantial
?
What the heck does that mean?
36. Coalition of Concerned Charities
the American Cancer Society,
American Heart Association,
Association of Schools of Public Health,
Big Brothers of America,
Campfire Girls Inc.,
Council for Advancement and Support of Education,
Family Service Association of America,
Goodwill Industries of America,
National Audubon Society,
National Council on the Aging,
National Health Council, National Mental Health Association
YWCA of the USA
37.

Any lobbyist (individual or firm) whose lobbying expenses exceed certain thresholds must register with the Secretary of the Senate and the Clerk of the House of Representatives within 45 days after the lobbyist first makes a lobbying contact with covered officials in the legislative and executive branches of the federal government on behalf of a client.

38. Introduces H election (will discuss in a moment 39. Must report: 40. Estimate of money spent 41. Issues lobbied for 42. A statement of houses contacted 43. A list of employees who acted as lobbyists on behalf of the clientLobbying Disclosure Act (1976)
44. Expenditure Limits
Insubstantial part test (1934)
Enacted in 1934
Vague-applies facts and circumstances criteria
501(h) expenditure test (1976)
Elect by filling out Form 5768 (suggested)
Direct Lobbying:20% of the first $500,000 of its exempt purpose expenditures; 15% of the next $500,000, and so on, up to one million dollars a year.
Grassroots Lobbying: 5% of the first $500,000 of its exempt purpose expenditures;3.75% of the next $500,000, and so on, up to $250,000 a year.
45. National endowment for the preservation of liberty
IRC 501(c)(3) organization
1987, House Ways and Means Oversight
Subcommittee Chairman J.J. Pickle
announced that he was initiating an investigation
The organization reportedly received funds from the Iran- Contra arms sales and used the money
to finance conservative Congressional candidates in the 1986 campaign
to run negative advertisements about Congressional incumbents who opposed aid to the Nicaraguan Contras
NEPL also engaged in a considerable amount of grass roots lobbying to garner support for Contra aid
The hearings resulted in the enactment of several statutes
46.

As amended by the Lobbying Disclosure Technical Amendments Act of 1998

47. These acts provide for further disclosure of lobbying activities 48. Concerns were raised about the capacity of Congress to oversee 49. lobbying activities 50. campaign finance practices 51. Congressional rules concerning gifts and support from lobbyists. Lobbying Disclosure Act of 1995
52. Honest Leadership and Open Government Act of 2007 (H.R. 2316)

Substantiallyamended the Lobbying Act of 1995

53. While not an ideal set of reforms;makes important advances in increasing accountability and transparency in Washington 54. 12/23/2009: Secretary of Senate and Clerk of the House issue updated guidance on how to interpret the Lobbying Disclosure Act as updated byHLOGA