Rock Your CauseAdvocacy for Diaper Banks

Alison WeirNational Diaper Bank Network

Agenda

• Advocacy v. Lobbying• What can a 501(c)(3) do? • Limits of Lobbying• Advocacy—Educate the public and the policy

makers• Finding the Right Words

Advocacy v. Lobbying

• Advocacy = educating and raising awareness of issues

• Advocacy endorse or oppose specific legislation• Lobbying = influencing legislators to support or

oppose a particular issue or piece of legislation• Advocacy is always allowed • Lobbying is allowed, within limits• Partisan political activity—never allowed

From the IRS• 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.

More on What Lobbying Is

• Communication must refer to and reflect a view on a specific legislative proposal or legislation that has been introduced before a legislative body (federal, state or local).

• The communication must refer to specific pending or proposed legislation and reflect a view on the legislation.

• Lobbying does not include communication regarding actions by executive, judicial or administrative bodies (e.g., regulations).

Types of Lobbying• Direct lobbying: communication with a legislator, legislative staff or

legislative body, or any covered executive branch or other government employee who may participate in the formulation of legislation. – Refers to a specific piece of legislation and – Expresses a view on that legislation.

• Grassroots Lobbying: attempt to influence specific legislation by

encouraging the public to contact legislators about that legislation.– Refers to specific legislation, – Reflects a view on that specific legislation, and – Call to action.

Can the Diaper Bank Lobby?

Yes, with limits. •Cannot engage in “excessive” lobbying or spend a certain percentage of their budget on lobbying efforts.

– “Excessive” determined through “substantial” test or 501(h) formula

•May not promote or oppose political candidates or parties in any way—or risk losing their tax exemption. •May not use charitable resources for partisan or political activities. •May lobby as long as they follow the rules for lobbying (register and report expenses, including paid staff time).

– Rules vary by state.

501(h) Election

• Allows 501(c)(3) organizations to elect to have any lobbying activity evaluated under a specified formula, rather than under the unspecific “insubstantial amount” standard.

• 501(c)(3) organizations retain that designation regardless of whether they elect to have their lobbying activity evaluated under IRS Code section 501(h).

Lobbying Limits—No 501(h) Election

• Without 501(h), lobbying is limited to an “insubstantial amount” which is determined by questions on the Form 990

• The penalty for having found to have engaged in not “insubstantial” lobbying activity is loss of tax exempt status.

Lobbying Limits with 501(h)

• To select 501(h) test, file Form 5768 (election under 501(h) of the IRS Code).

• Test is much cleaner and is based entirely on how much is spent on lobbying activity as compared to other expenditures.

• For programs spending less than $500,000, no more than $100,000 (20%) can be spend on lobbying.

• Election benefits small (organizations with annual expenses less than $17 million)

• Lesser penalty for violation than under “substantial” test

Advocacy or Lobbying?

• Posting article about states where diapers are tax exempt?

• Posting article urging supporters to ask state legislature to make diapers tax exempt?

• Talking with state senator about your diaper bank? • Commenting during a rulemaking comment period

on proposed new regulations?

Why Advocacy Is Important

• You are the local expert on diaper need• Before people will help address diaper need,

they need to know about it• Advocacy is important to build supporters for

your program, volunteers and donors • Advocacy provides the foundation on which

policy change can be made

Why Lobbying Is Important

• There is a limit to how much charitable organizations can do to address diaper need

• As an expert on the ground, you are in the best position to let lawmakers know how diaper need affects the people and agencies you serve

• Lawmakers want to hear from people in their districts about legislation

Simple and Compelling Messages

• Strive for message that appeal to both sides of the aisle– Words that work: Opportunity, Investment, American Dream,

Basics

• Describe the problem in concrete visuals• Don’t try to counter myths—tell your side in positive

terms• Keep message short and powerful• More facts don’t help

Conclusion

• Raising awareness is the first step to addressing a problem

• Increased awareness helps your diaper bank help more people

• Reaching policy makers can help even more people when policies are changed

• You know more about diaper need than anyone else around you—share that knowledge to effect change

Questions and Answers

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