Lobbying 101: 6 Tips on Advocating Without Trouble

The Internal Revenue Code (IRC) rules limit the amount of time a nonprofit can spend on direct or indirect lobbying. The IRS rules, however, define lobbying only as work done in relation to specific federal, state or local legislation. This can present 
important issues for nonprofits as we ask the age-old question: “Is my organization lobbying or are we really just advocating and educating?” Here are some tips to keep in mind that will help you to promote your organization and its mission, while not running afoul of the lobbying rules.

1. Look for specific restrictions. If your nonprofit receives federal grant funding, always check the grant language for specific restrictions regarding how the federal grant funds may be spent. There may be language that limits or prohibits lobbying activities. Look at the appropriations language if your nonprofit receives federal grant funding.

2. Keep a checklist of activities. The following is a list of examples of activities that your organization can engage in without violating IRS rules:

• Activities that are related to advocacy on issues brought to your organization by specific clients (individuals or organizational clients) if the issues raise potential legal claims your organization may pursue
• Responding to a formal, written 
request from public officials for comments on a proposal or participation in an advisory council, etc.
• Nonpartisan analysis, study and 
research in which your nonprofit 
organization advocates a particular position but presents a full and fair exposition of the pertinent facts to 
allow the policymaker to form an 
independent opinion
• Providing information to public 
officials that furthers the purposes 
of the grant but does not make a request for action
• Self-defense communications on 
matters that could affect your nonprofit’s existence, powers, duties, etc.

3. Record your time. The IRC does not prohibit lobbying by nonprofits, but limits the amount of lobbying work in which a nonprofit can engage. The 
IRC only counts lobbying of legislative bodies—Congress, state legislatures and local legislatures. Lobbying of executive agencies at any government level does not count in determining whether a 
nonprofit has spent too much time 
on lobbying.

4. Know your state lobbying rules. Many states have lobbying statutes in addition to the federal IRC. For example, in Pennsylvania, state law defines “lobbying” to mean any direct communication or indirect communication that reflects an effort to influence either legislative action or administrative action in the Commonwealth. Your organization may be required to provide the state with quarterly reports that detail lobbying 
activities within your organization. Be sure to review the laws in your state to determine what is required.

5. Review your organization’s communications. Any direct or indirect communication from your nonprofit may be lobbying. So, how do you know what to review? It is important to look at both oral and written communications, including the copy on your website, and items posted to social media sites.

Direct communication:

• Written or oral effort
• Directed to a state official or employee
• If the purpose or foreseeable effect is to influence legislative or administrative action

Indirect communication:

• Written or oral effort
• Encourages others (including the general public) to take action
• If the purpose or foreseeable effect is to influence legislative or administrative action

6. Check for local rules, too. Your local city or town may have a lobbying law or ordinance you need to be aware of. For example, Philadelphia requires nonprofits to register as lobbyists in some instances.

While these six tips may not tell you 
all you need to know about the world of lobbying, they are intended to provide 
a basic to-do list for your nonprofit 
organization. By keeping these tips in mind, your organization should be able to spread its message and fulfill 
its mission without creating unintended legal consequences.