Return To Programs Page      eClub One - Archive Articles List
 

We hope you enjoy the programs at eClub One

Reprinted By Permission - Copyright
Boulder Daily Camera
Making Money Matter
Enid Ablowitz
 

March, 2004

Non-Profits CAN Lobby!

As you tallied your charitable deductions in preparation for filing your tax return, no doubt you remembered that you can’t deduct donations to political organizations, right?  The IRS regulations related to charitable giving (publication 526 available at irs.gov) define not-for-profit organizations that are charitable in nature and that qualify for donors’ claims for an income tax deduction related to their gifts.  Most familiar are the “community chest, corporation, trust, funds or foundations…operated only for one or more of the following purposes:  religious, charitable, scientific, educational, literary and the prevention of cruelty to children or animals.”  There are others such as war veteran’s organizations, domestic fraternal societies, etc.  However,   political organizations are not qualified charities.

That doesn’t mean that qualified non-profits can’t engage in public discourse about important issues. Non profits can lobby. Frequently, the leadership of non-profits doesn’t fully understand their rights and opportunities in mission-related advocacy. They shy away from lobbying because of a fear that non-profits can’t legally engage in such activities without jeopardizing their 501 (c) (3) status. In fact, the Independent Sector, a coalition dedicated to strengthening non-profits and philanthropy, specifically asked a series of questions of the IRS to clarify the legality of lobbying by publicly supported charitable organizations. The answer from the IRS was that yes, section 501 (c) (3) organizations are permitted to lobby under federal tax laws. The questions and answers in this 2000 communication become increasingly technical, but the overview is that, with a few exceptions like private foundations and churches, limited lobbying is permissible, within limitations of expenditures and purpose. 

Charity Lobbying in the Public Interest (CLPI), is an organization that encourages charities to speak out on behalf of their constituents and causes.  They point out that “increasingly, the federal government has been allowing local governments to decide how to spend federal money…This change gives local non-profits even more responsibility to tell local policymakers what is needed and what will work.” CLPI explains that the differences between direct lobbying and grassroots lobbying are important distinctions with regard to IRS limits on expenditures.  The difference is in approach:  direct lobbying is when you “state your position on specific legislation to legislators….or urge your members to do so.” Grassroots lobbying is when you “state your position to the general public and ask the general public to contact legislators…”

Why all the talk about lobbying? As Jeffrey Berry said in his November ’03 Washington Post article entitled “The Lobbying Law is More Charitable Than They Think,” the non-profits are likely to be “much closer to the problems and the solutions than the policymakers in city halls, state capitals and Washington.” He goes on to say, “yet the fear of an IRS audit, no matter how unlikely, has deprived many nonprofits of their voice and has hurt the very constituencies that they intend to serve.” Berry’s study of more than 1700 non-profits found that the typical executive director is either unaware or too afraid to engage their organization in lobbying.  Despite specificity of the 1976 law, many do not realize there is an IRS election they can take that can help to define the activities and the expenditures that are allowable.  Non-profit organization leaders should be encouraged to understand the IRS policies, then examine their role in the public arena, and consider engaging in or accelerating their lobbying activities. 

 I have often said that philanthropy involves passion.  Whatever your values and views, sometimes making a difference is about providing the resources to organizations that can amplify your voice and the collective voices of like-minded people to impact public policy. If you care about education, or healthcare, or some other cause, find a qualified non-profit whose mission matches your point of view and encourage the leadership to consider public policy and advocacy as an integral part of their agenda. 

In partnership, donors and non-profit executive directors have the power to change public policy by heightening the issues addressed by the billions of charitable dollars donated every year which are subsidized by the government through the charitable deduction. Public advocacy is part of the democratic process.

Enid Ablowitz is the Vice President for Advancement at the University of Colorado Foundation, Inc., and Director of Advancement for the Coleman Institute for Cognitive Disabilities.  She has been working as a donor advocate for nearly 15 years and has written a book for donors called Making Money Matter:  Eight Steps to Thoughtful Giving. For information on how to obtain a copy, contact her at enidablowitz@hotmail.com.

You may contact Enid Ablowitz by email at enidablowitz@hotmail.com

Now that you have completed this program, you have these options

To do BOTH use the Critique E-mail first, then return and click on the Make-Up Request Form

The content of programs appearing on the eClub One Make-Up website are the opinions of the authors and may or may not be shared by members of Rotary eClub One. These programs are presented by Rotary eClub One for use by site visitors, just as any program that might be presented at a Rotary meeting anywhere in the world.

© 2007 eClub One District 5450
Solution Services Inc