As preservationists we know how important it is to advocate for the power of preservation at the federal, state, and local levels. However, sometimes we need a reminder of what tools we have access to both as nonprofits and as individuals who care about our communities and our country.

One of the first things that we need to know prior to lobbying and advocacy of any kind are the legal rules around these practices. As National Trust Deputy General Counsel Ross Bradford said, “lobbying is an important tool for nonprofits, and they should not be afraid to contact their elected representatives to advocate for the causes that are important to them – but it’s also important to understand the rules and regulations that govern how nonprofits can conduct their lobbying efforts.”

This piece is part of a series of resources dedicated to giving preservationists the tools they need to ensure that their voices are heard. As you begin your advocacy work make sure you are up to date on the latest issues facing the field by visiting the National Trust Action Center.

Watch the training video below and check out the 5 Tips to make sure you are up to speed:

1. Know the Difference Between Issue Advocacy and Political Activity

True or false? Nonprofits are not allowed to lobby.

False!

Under Section 501(c)(3) of the Internal Revenue Code, nonprofits can lobby without losing their tax-exempt status. Organizations must abide by certain restrictions established by federal tax laws. The key is to make sure you are aware of what those restrictions are and how you approach your advocacy work.

For instance: Make sure that your advocacy work does not become prohibited political campaign activity. Make sure that your messaging does not directly identify a candidate for office and keep in mind the timing of the advocacy work to an election.

2. Understand What Constitutes Direct and Grassroots Lobbying

There are two different sets of tax rules that nonprofits can choose between in following the IRS rules. The Substantial Part Test is all about making the case that only a portion of a nonprofit’s work is directed towards lobbying. It’s the harder set of rules to follow so many nonprofits instead use the Expenditure Test (the 501(h) election) where there are clear financial limits to what nonprofits can spend on lobbying.

Under the Expenditure Test these limits are divided lobbying into two categories: direct and grassroots lobbying.

Direct Lobbying is when an organization attempts (through its efforts/activities) to influence specific legislation by reflecting its view on the legislation to a member of a legislative body or other government employee who participates in the formulation of the legislation.

Grassroots Lobbying is any communication with the public about a specific legislative proposal that expresses a view and calls for action to communicate with a legislator in order to influence the legislation.

3. Track Your Lobbying Expenditures

There are a number of different expenditures that need to be tracked as part of the IRS guidelines. These include compensation of employees and vendors, costs associated with communicating with elected officials (i.e. travel expenses and payments to other organizations to lobby on your behalf). You should track not only actual time spent conducting lobbying activities but also any time spent in preparation to lobby (e.g., prep meetings and time spent drafting communications).

It is also important to make sure each employee is tracking their direct and grassroots lobbying for reporting purposes.

4. Be Clear on Lobbying Rules under Federal, State, and Local Laws.

IRS reporting requirements are separate from state or local reporting requirements.

Many states, counties, and cities have very detailed rules and regulations regarding what constitutes lobbying and when individuals/orgs must register. So check your local rules when building out an advocacy action plan. This information is often on Secretary of State websites or city/county websites.

Keep in mind that the purpose of many state or local laws is to provide transparency regarding who is influencing lawmakers’ decisions—so there may be rigorous reporting requirements that require quarterly filings. State and local lobbying registrations are often publicly accessible and frequently very detailed.

Also note that no uniform registration requirements/thresholds exist. Typically, registration is required after a certain amount of money OR a percentage of an employee’s time is spent on lobbying activities in a particular jurisdiction.

5. Define Lobbying around Advocacy Campaigns

With every advocacy campaign you put together there are a set of important questions you must consider to make sure you are prepared to follow guidelines set forth by the IRS.

• Think about the money you are spending, the time you are spending, the time that it takes to prepare for these activities.
• How will social media be used to influence the passage of the legislation? Make sure social media or marketing staff are tracking their time.
• Is landmark designation involved? Does a legislative body have to approve the designation (e.g., City Council or County Board of Supervisors)?
• Is there a ballot measure or referendum before the community? This is actually direct lobbying because you are lobbying the public (which directly votes to enact a law rather enacting laws through legislative acts ).
• Make sure that your funding source allows for lobbying expenses. The reality is that most grant funders do not provide funding to conduct lobbying activities..