What nonprofits cannot do
Charitable nonprofits may not participate in any political campaign on behalf of or in opposition to any candidate for public office (at any level). We remind nonprofits to remember the “3 Ps”: Political activity is about People running for office and 501(c)(3)s are Prohibited from getting involved, either for or against a candidate.
What nonprofits can do
Nonpartisanship does not mean non-participation. Charitable nonprofits can engage in advocacy to advance their mission, and this can include lobbying, education and election-season engagement on the issues.
1. Lobbying
Yes, public charities can lobby, but within limits. Lobbying is any activity designed to influence legislation, which includes things like contacting legislators, testifying at a public hearing, speaking at a city council meeting, circulating sign-on letters, activating around ballot initiatives, producing talking points for their audience to use and more.
For this one, we remind nonprofits to remember the “3 Ls”: Lobbying is about Legislation and a section 501(c)(3) can do a Limited amount of it; that is lobbying cannot become a “substantial” part of a nonprofit’s work. What does “substantial” mean? This is subject to interpretation, and nonprofits need to track and report on their activities at both the state and federal level. If an organization is consistently engaging in lobbying, they may want to elect into the 501(h) expenditure test, which will give them more defined parameters.
2. Issue advocacy and education
Charitable nonprofits can educate elected officials and other stakeholders about the impact of proposed or enacted public policy. Nonprofits can criticize or celebrate policies or actions by those in government, either by directly communicating with the elected official, or by writing newsletter articles, blog posts, op-eds, letters to the editor, etc.
Generally, these activities are considered lobbying only if the organization is also encouraging a specific vote (which would be direct lobbying) or encouraging others to contact their elected officials about their vote (which would be grassroots lobbying).
3. Voter engagement
Nonprofits can help get out the vote and educate people about how elections work. In fact, nonprofits and foundations are uniquely positioned to support and enhance democratic participation through nonpartisan voter engagement activities. But, remember the 3 Ps: 501(c)(3)s are strictly prohibited from endorsing or opposing candidates for office.
Resources
If you are a nonprofit employee or board member, there are many resources to support your advocacy. Visit nonprofitmaine.org to learn more.
This article is for informational purposes only, and should not be considered legal advice.