a legal question on 501 (c)(3) non-profits

[trof]

Our local watershed watch is a 501 (c)(3) non-profit.
A couple of our board members, speaking for the organization, appeared before city planning and zoning committee and city council to argue against a developer requested zoning change on 190 acres of vacant land.

The change would have more than tripled the allowed number of homes. One of our watershed's tributaries, a creek, runs through the property on the way to a large bay.

We argued that such heavy density along a tributary would, in and of itself, be detrimental to our stated purpose of protecting, preserving, and enhancing the bay and tributaries.

A few of our members have voiced the concern that we are getting too "political" and might endanger our non-profit status.

I argue that we have to work with a lot of different factions and would probably never, as an organization, come out in "official" support of a particular party or candidate.

On the other hand, one of the most important groups we have to try and influence are city and county elected officials. Politicians. Sometimes we can give them a "thank you" or a "well done". Other times we may have to confront them and do battle for what we stand for. That does not make us "political".

Am I way off base here?
Thanks in advance for any advice.
trof

[unblock]

1. non profits are certainly allowed to voice opinions about bills, etc.

i'm no lawyer, but i know that aarp lobbies politicians and voices opinions about bills affecting seniors; aaa does the same regarding automibile drivers, etc.

[punpirate]

2. Non-profit status prevents an organization...

... from endorsing or lobbying for specific candidates. It does not prevent it from endorsing or lobbying for a specific issue within the purview of the organization.

Cheers.

[philosophie_en_rose]

3. You can advocate for issues, but not candidates.

http://www.ctpta.org/legislative/politics.htm

http://www.abanet.org/buslaw/blt/blt9-sutton.html

Don't rely on me, but I think it has more to do with campaigns and endorsements, rather than being completely politically neutral.

[Cerridwen]

4. I hope this helps - tho I recommend you check with tax lawyer

for specifics and a definition of "substantial."



"... it may not attempt to influence legislation as a substantial part of its activities and it may not participate at all in campaign activity for or against political candidates." (emphasis mine)


http://www.irs.gov/charities/charitable/article/0,,id=96099,00.html

"IRC section 501(c)(3) organizations are restricted in the amount of political and legislative (lobbying) activities they may conduct. For a detailed discussion, see http://www.irs.gov/charities/charitable/article/0,,id=120703,00.html

Lobbying Activity

In general, no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status.

Legislation includes action by Congress, any state legislature, any local council, or similar governing body, with respect to acts, bills, resolutions, or similar items (such as legislative confirmation of appointive office), or by the public in referendum, ballot initiative, constitutional amendment, or similar procedure. It does not include actions by executive, judicial, or administrative bodies.

An organization will be regarded as attempting to influence legislation if it contacts, or urges the public to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation, or if the organization advocates the adoption or rejection of legislation.

Organizations may, however, involve themselves in issues of public policy without the activity being considered as lobbying. For example, organizations may conduct educational meetings, prepare and distribute educational materials, or otherwise consider public policy issues in an educational manner without jeopardizing their tax-exempt status."



update: spelling *sigh*

[davsand]

5. In part it is called free speech. It is also part...

...of your organizational mission.

Your board members have every right to speak in public hearings--and can do so as a part of your organization's mission to educate on the issues of watershed protection. Additionally, these are public meetings open to ANYONE who chooses to show up.

The biggest prohibition for a 501(C)(3) is activity of a partisan nature. You CAN be out there on issues you are involved in, but you can't endorse candidates nor can you endorse parties. Additionally, you can teach citizens (en masse) to speak to legislators about an issue. It is called education and it is called community organizing. Both are perfectly legal for your non-profit to do.

As for recognition of any politico who does a "good thing" that is something that is probably OK as long as the recognition is not monetary or has no real financial impact for the politico. For practical advice I'd avoid an "attaboy" in an election year where somebody is up for re-election. That could sound like a campaign assist.

As a practical matter, the IRS RARELY gets into this kind of stuff unless you have a very specific local complaint that is raised. I think I read someplace that the IRS has revoked 501 (c)(3) status a very small number of times in the last decade.

DO talk to a lawyer about it if you are not sure--my advice and perspective comes from several years of association with a few non-profits, a few years of working IN non-profits, and a fair amount of research into IRS code for property tax issues.

Best of luck!


Laura

[Sgent]

6. For lobbying on specific legislation

you are prohibited from spending more than the lesser of:

20% of revenue
$1,000,000

Note, these limits are the maximum you may spend on lobbying efforts for or against specific legislation. Being involved in more position advocacy doesn't meet this requirement in most cases.

As long as you are within those guidelines, and have elected the safe-harbor (Form 5768), you are fine.

[Misskittycat]

8. There are IRS publications explaining this -available online.

I should remember the number of the publication, but I can't right now. Its title is something like "Lobbying Activities..."

If you go to the IRS website, there will be a link to publications, then click on tax exempt organizations. I haven't linked there for over a year, so this is my best recollection.

An alternative is to google "lobbying activities" and "nonprofits." It will probably lead you to many sites explaining the rules.

Of course, I should have gone to these sites myself before posting this, but apparently I'm extremely lazy this morning. Probably when I finish doing my morning review of DU, I'll check it out. Sorry.

[donco6]

7. What they said.

Issues not endorsements.

But bottom line, as many fundie organizations know, you can say whatever you want until someone challenges you.