Rules of the Game: The Bolder Advocacy Podcast

Get Out the Vote (GOTV) efforts are one of the most impactful ways 501(c)(3) public charities can strengthen civic participation and help ensure communities have the tools and information they need to make their voices heard. From voter registration and education to reminders and access assistance, (c)(3) organizations can play an important role in helping people navigate the voting process while remaining nonpartisan. On this episode, we explore best practices for designing effective GOTV efforts, including how nonprofits can engage their communities, train staff and volunteers, and navigate election-related rules. Attorneys for this Episode: Monika Graham Natalie Ossenfort Victor Rivera 501(c)(3)s Must Remain Nonpartisan Internal Revenue Code: 501(c)(3) organizations are prohibited from directly or indirectly participating in partisan political activity (activity on behalf of, or in opposition to, any candidate for public office). Keeping GOTV Efforts 501(c)(3) Safe Effective voter outreach for 501(c)(3)s is focused on expanding participation, not influencing who someone votes for. Therefore, (c)(3)s should refrain from using messages that support or oppose candidates, political parties, or groups of candidates. In addition, they should: · Make voter outreach activities available to all eligible voters · Ensure GOTV efforts are not coordinated with candidates or campaigns · Avoid targeting communities because they belong to a particular political party, voted a particular way in the past, or because they vote in a district where the race is likely to be close The IRS uses a facts and circumstances test when determining whether a 501(c)(3) has violated the rules against partisan electioneering. Building a Strong GOTV Effort · Start with your community. Use existing relationships and trusted communication channels to reach the people your organization serves. Connect with voters through tools and spaces they already use, such as text messages, social media, email newsletters, community events, and local partners. · Plan ahead. Start by understanding your community's needs. Then, establish goals and timelines, create written policies and training materials, and train staff and volunteers on nonpartisan rules, including the difference between organizational activities and personal political activity. · Build partnerships. Collaborate with community organizations, libraries, schools, faith-based organizations, and other trusted institutions to expand outreach and maximize impact. Just remember that if you are partnering with any organizations or entities that are not 501(c)(3)s, all of your collective work needs to remain nonpartisan. · Track and evaluate your efforts. Document outreach activities and program decisions, assess what worked, and incorporate lessons learned to strengthen future GOTV efforts. GOTV Activities 501(c)(3) Public Charities Can Conduct 501(c)(3) public charities can support voter participation by: · Registering voters through nonpartisan voter registration drives o NOTE: While this is true for public charities, private foundations have more restrictive rules related to voter registration activities and funding. · Reminding people about upcoming elections and encouraging them to participate · Sharing nonpartisan information that speaks to the voting process, including registration deadlines, polling locations, early voting, vote-by-mail options, and voter identification requirements · Helping reduce barriers to voting by providing nonpartisan assistance, such as transportation to the polls, language access resources, or accommodations for voters with disabilities Remember, some voter registration rules and other voter assistance requirements can vary by state and have probably been updated since the last election cycle, so it is important to train your staff and volunteers on the applicable (and current) rules. Just Remember: · In order to remain nonpartisan, 501(c)(3)s should not suggest who people should vote for in upcoming candidate elections. · It's not just the Internal Revenue Code you need to think about. Federal election law and state laws also have a lot to say about how nonprofits can engage in election season advocacy. o For example, federal election law prohibits giving someone something of value in exchange for voting. o State law will likely regulate how you can interact with voters at polling sites, how and when voters can vote by mail (vs. in-person), and more! Best Practices: · Provide training to staff and volunteers so they know how to effectively engage in GOTV work without running afoul of the Internal Revenue Code, federal election laws, or state law. · Develop and implement an organizational election season policy that is reviewed and signed by all staff, volunteers, and others who could potentially speak on behalf of your organization. Key Takeaways: · GOTV efforts are a powerful way for 501(c)(3) public charities to advance civic participation and strengthen communities. · 501(c)(3) public charities can encourage people to vote while remaining nonpartisan. · Thoughtful planning, training, and compliance practices help (c)(3)s strengthen civic participation in their communities · Effective GOTV efforts can engage communities by leveraging trusted relationships, reducing barriers to participation, and providing clear, nonpartisan voting information. Resources: Want to Conduct or Fund a Voter Registration Drive? The Rules of the Game: A Guide to Election-Related Activities for 501(c)(3) Organizations Voter Registration Rules for Private Foundations Nonprofits, Elections, & the Fine Art of Remaining Nonpartisan Sample 501(c)(3) Organizational Policy for Election Season Vote 411

This week we are talking about 501(c)(4)s, or social welfare organizations. What are the advantages to starting one? How are they different than 501(c)(3)s and other types of nonprofits? And what are the important considerations when determining if a 501(c)(4) would be a good vehicle to use to conduct the types of activities you are hoping to engage in to achieve your mission? If you are curious about 501(c)(4)s, what they can do, and how they operate... this podcast episode is for you. Attorneys for this Episode Natalie Ossenfort Susan Finkle Sourlis Quyen Tu Shownotes Scenario: · Existing 501(c)(3) has a mission focused on providing potable water to the residents of a community, who are currently unable to tap into a reliable water supply. · The city, county, and state have failed to step up, so the 501(c)(3)'s staff raise funds for bottled water that they deliver to the community. · What the organization's founders thought would be a temporary fix, has now been operational for several years, and the water situation is not improving. · The 501(c)(3)'s founders want to do more to address the needs of the community, and some are considering starting an affiliated 501(c)(4). General Rules & Characteristics for 501(c)(3)s: · 501(c)(3) organizations have a very favorable tax status. · They are tax-exempt, and their donors can take advantage of a tax deduction for their contributions. · 501(c)(3) public charities are limited in the amount of lobbying (or legislative advocacy) they can engage in, and they are prohibited from engaging in partisan political activity. Advantages of 501(c)(4)s · 501(c)(4)s are social welfare organizations. · They are tax-exempt organizations that operate for the common good and general welfare of the community. · Donations to 501(c)(4)s are not tax-deductible for donors, but... · 501(c)(4)s can conduct an unlimited amount of lobbying (or legislative) activity, and they can do some partisan work to support or oppose candidates for public office, but that type of activity must remain a secondary activity of the organization. Scenario: · If the 501(c)(3) founders wanted to advocate more aggressively for legislative changes that could provide a long-term solution to their community's water access problem, they might consider forming a 501(c)(4). · How much political (or partisan) activity could the organization conduct? If a 501(c)(4) decides to engage in any partisan political activity, that must be a secondary purpose of the organization and not the primary purpose. Primary Purpose Activities · Issue advocacy and lobbying o In our scenario, this could include advocacy in front of the local city council or state legislature for reliable access to water. o It could also include ballot measure advocacy. · Nonpartisan voter outreach to get out the vote and mobilize the community · Conduct research and educate legislators on issues · Engage in litigation to defend the rights of their constituents, and more... Secondary Purpose Activities · Candidate endorsements · Voter outreach activities using partisan targeting · Comparing the organization's stance on issues to where the candidates stand on those issues · Encouraging people to vote for candidates from certain political parties or with certain issue positions, and more... · When engaging in this type of activity, a 501(c)(4) must make sure that any partisan work remains a secondary purpose, and it must be mindful of and comply with campaign finance and election laws at the federal, state, and local levels. Secondary purpose activity... how much is too much? · A 501(c)(4) must maintain a primary purpose that is nonpartisan. · Tax lawyers differ on what they think is the ideal primary / secondary purpose split. · In order to be cautious, a 501(c)(4) could consider keeping its secondary purpose activities to 40% or less. · The IRS has created a safe harbor for organizations applying for 501(c)(4) status: · 60% or more of its total expenditures (including reasonably allocable overhead) and total time (measured by employee and volunteer hours) is devoted to social welfare activity; and · less than 40% of its total expenditures and total time is devoted to political campaign activity. Affiliated Organizations Some things to keep in mind if a 501(c)(3) wants to form an affiliated 501(c)(4): Start-up costs should not come from the (c)(3), but instead should be independently raised for the formation of the (c)(4). Once the 501(c)(4) is formed, it should implement a cost-sharing agreement to ensure that no 501(c)(3) resources are being used to impermissibly subsidize (c)(4) work. It should implement time tracking systems to ensure that staff and volunteers track their 501(c)(3) and 501(c)(4) work separately. How Would an Existing 501(c)(3) Decide Whether to Form an Affiliated 501(c)(4)? · Examine whether your 501(c)(3) public charity is getting close to its lobbying limits, but still wants to do more legislative advocacy. · Examine whether there is a need for a more political, and policy focused voice to advocate on your issues and support your communities. · Examine whether you want to engage in activities that are prohibited for 501(c)(3)s, but permissible for 501(c)(4)s (support or opposition of candidates) · Examine whether you have sufficient financial resources to cover the start-up costs of a 501(c)(4) from sources other than your 501(c)(3), etc. Resources · The Connection: Guide to Creating and Operating 501(c)(3)s, 501(c)(4)s, and Political Organizations · Comparison of 501(c)(3) and 501(c)(4) Permissible Activities (Factsheet) · Navigating the Gray: Tips for working in coalition when the law isn't clear (Factsheet) · Coalition Checklist (Guide)

In recent months, the threats facing nonprofit organizations have continued to develop at a furious pace. In the face of challenges like funding reductions and congressional investigations, nonprofits are taking the time to shore up their defenses and prepare for what's to come. On this episode, we'll discuss several recent events that have the sector talking so that your nonprofit can take the steps necessary to ensure your continued ability to boldly advocate on behalf of your communities. Attorneys for this episode · Brittany Hacker Leonard · Tim Mooney · Natalie Ossenfort Shownotes · In recent months: o Federal Executive Orders & Memos: § March 7: EO entitled "Restoring Public Service Loan Forgiveness", which makes employees of organizations with a "substantial illegal purpose" ineligible for public service loan forgiveness benefits. · "Targets orgs supporting terrorism and aiding an dabetting illegal immigration" § August 28: EO entitled "Use of Appropriated Funds for Illegal Lobbying and Partisan Political Activity by Federal Grantees", where the President directs the Attorney General to investigate whether federal grant funds are being used to support lobbying initiatives. § September 25: National Security Presidential Memorandum (NSPM-7)+ Sept 22 EO designating Antifa as domestic terrorist org: designating domestic groups as terrorist orgs. o Congressional Oversight (Letters and Hearings): § October 6: Ways and Means Committee Letter to IRS requesting investigation of specific nonprofits and revocation of their tax-exempt status § October 28: Letter sent to three 501(c)(3) foundations regarding their compliance with nonprofit tax law § November 5: Letter sent to the Environmental Protection Agency regarding its funding of "far-left" organizations via the Greenhouse Gas Reduction Fund § Check out the International Center for Not-for-Profit Law's congressional investigations tracker for additional examples. o State-Level Actions: § Texas: November 18 Executive Order designating certain organizations "foreign terrorist organizations", barring them from purchasing property in the state. · Stay alert: o Be on the lookout for new state laws related to foreign contributions to ballot measures. At least 19 states have enacted bans on contributions from foreign nationals to ballot question efforts, nine during the 2025 legislative session alone. o Expect a possible uptick in I-9 (Employment Eligibility Verification) Enforcement. Employers are required to timely and properly complete and retain Form I-9 for each employee they hire. · What you can do: o Don't fall for the sternly worded "Letters to Santa" by Members of Congress. o Conduct a compliance self-assessment with AFJ Bolder Advocacy's "Advocacy Check-Up" tool. o Take advantage of the Nonprofit Legal Defense Network (created in partnership with We The Action). o Brush up on federal and state election season advocacy rules in advance of the 2026 Midterms, and adopt an election season advocacy policy for signature by staff, board members, and volunteers. o Lobby against legislation that would create new barriers to your nonprofit's advocacy. Just remember to stay within your public charity lobbying limits. o Go on the offense. o Reach out to AFJ's Bolder Advocacy team for free technical assistance. Resources · Break in Case of Panic! hub · Preparing for Politically Motivated Attacks on-demand webinar · How Nonprofits Can Fight Back Against Trump's Harmful Executive Orders blog · Advocacy Check-Up: compliance self-assessment tool for 501(c)(3) public charities · Nonprofit Legal Defense Network

Whether it be local elections or picking a new president, election season seems to always be lurking around the corner, so on today's episode we're unpacking what it means for 501(c)(3)s to remain nonpartisan and how these nonprofits can safely engage in several different types of advocacy during election season. Attorneys for this episode Monika Graham Melissa Marichal Zayas Sarah Efthymiou Remaining Nonpartisan: The rule is clear: 501(c)(3) organizations cannot engage in any activity or make statements that suggest support or opposition to political parties, candidates, or groups of candidates running for public office, including those not affiliated with a specific political party. However, the definition of what counts as "nonpartisan" remains somewhat unclear. The IRS uses a "facts and circumstances" test to determine whether a charity's communication and/or activity is truly nonpartisan or a disguised attempt to influence an election. The IRS considers whether the communication and/or activity: identifies candidates compares a candidate's position on issues important to the organization with the organization's positions on those same issues expresses approval or disapproval of a candidate's position or actions is delivered close to an election, references voting, focuses on issues that distinguish candidates is part of an ongoing series of communications independent of election timing or coincides with non-electoral events like legislative hearings on pending bills DO: Keep your focus on issues, not elections. Continue mission-related issue advocacy but avoid suggesting how people should vote. Educate voters. Provide nonpartisan facts, resources, and information about voting without mentioning or implying support for candidates or parties Host candidate forums or publish questionnaires: Invite all viable candidates and give each candidate an equal opportunity to participate Ensure questions are neutral, related to your charitable purpose, and cover a broad range of issues Share responses verbatim and without commentary Register voters and encourage turnout (GOTV) in a nonpartisan manner — serve everyone equally, regardless of political affiliation. Remember, there are special rules for private foundations Document everything. Keep records showing how you designed and implemented your activities to avoid partisanship. Develop a track record of similar advocacy in non-election years Train staff and volunteers they understand what's allowed and what's off-limits during election season Separate personal and organizational activities. Staff and board members may support candidates on their own time, but not using organizational resources (e.g., name, email, office space, social media) Engage in ballot measure advocacy but remember to track and report this activity as lobbying if expressing a view on the measure and trying to influence the vote Meet with the candidates, educate them about your organization's work, and try to influence their platforms, while ensuring that you provide the same or equivalent information to every candidate DON'T: Endorse, oppose, or rate candidates — directly or indirectly Use "code words" (e.g., "vote pro-life," "support progressive values," "throw out the incumbents") that imply candidate support or opposition Time issue advocacy communications to coincide with elections if the message could be seen as favoring one candidate's position. Publish or share candidate statements selectively or with commentary that signals approval or disapproval Use organization funds, staff time, or materials for any partisan campaign activity Let candidates use your events, publications, or platforms for campaign purposes. Coordinate messaging with a candidate or you could also trigger campaign contribution restrictions under federal election law Resources: Rules of the Game: A Guide to Election-Related Activities for 501(c)(3) Organizations Seize the Initiative: A Legal Guide on Ballot Measures for Nonprofits and Foundations Being a Player: A Guide to the IRS Regulations for Advocacy Charities Keeping Track: A Guide to Recordkeeping for Advocacy Charities Running the Advocacy Race: Bolder Advocacy's Top Resources for an Impactful 2024 Election Season

With school back in session and fall in the air, it's the perfect time to get back to basics on the Rules of the Game podcast. On today's episode, we'll review how the advocacy rules differ across the various types of tax-exempt organizations, including 501(c)(3)s, 501(c)(4)s, and PACs. Whether you're a seasoned advocate or just starting out, understanding these fundamentals is crucial for crafting bold advocacy plans that maximize your capacity and comply with the appropriate rules. Join us for a quick refresher! Attorneys for this Episode Melissa Marichal Zayas Natalie Ossenfort Susan Finkle Sourlis Comparison of tax-exempt organizations There are many different types of tax-exempt organizations – our federal tax code offers 29 different types of tax exemptions to choose from! 501(c)(3)s 501(c)(3) organizations are tax-exempt, and donations to 501(c)(3)s are tax deductible. With this favorable treatment come some restrictions related to lobbying and election season advocacy. · Public Charities (including Community / Public Foundations) o Prohibited from supporting or opposing candidates for public office o Allowed to lobby so long as they stay within certain lobbying limits and use unrestricted dollars to pay for lobbying activities o May also conduct nonpartisan election-related activities including voter outreach, voter education, voter registration, etc. · Private Foundations o Prohibited from supporting or opposing candidates for public office o Effectively barred from lobbying due to a steep excise tax that applies to private foundation lobbying expenditures o Should also be aware of specific rules related to voter registration activities 501(c)(4) social welfare organizations, 501(c)(5) unions, and 501(c)(6) trade associations These organizations enjoy tax exempt status, but donations to them are not tax-deductible for the donor. However, they can engage in a wider array of advocacy activities than 501(c)(3)s. · They are allowed to lobby without tax code lobbying limits. · They can engage in some partisan political activity as a secondary purpose (for example, express advocacy). · When engaging in partisan activities, they need to be aware of campaign finance regulations and reporting thresholds. · At the federal level (and in most states), corporations - including tax-exempt organizations - are prohibited from making monetary or in-kind contributions to candidates or political parties. 527 – political organizations 527 political organizations include political parties; campaign committees for candidates running for federal, state, or local office; and federal or state political action committees ("PACs"). · The primary purpose of a 527 must be to engage in activities that influence the selection, nomination, election or appointment of an individual to a public office or an office in a political organization. · They do not generally engage in lobbying. Their lobbying expenditures may be subject to tax if the lobbying does not further political purposes. · There are many types of PACs, including traditional PACs and Super PACs. How can these organizations work together? Despite the different restrictions on lobbying and political activity, there are several ways to safely collaborate with organizations that have a different type of tax exemption. 501(c)(3) private foundations & 501(c)(3) public charities · Private foundations and public charities can engage in joint nonpartisan, non-lobbying activities, like public education campaigns. · Private foundations can also fund public charities, but they must ensure that they don't earmark any funds for lobbying. 501(c)(3) private foundations & 501(c)(4)s/501(c)(5)s/501(c)(6)s · Private foundations can also fund 501(c)(4)s, (c)(5)s, and (c)(6)s, but they must follow what are called the expenditure responsibility rules when granting to any non-(c)(3) organization. 501(c)(3) public charities & 501(c)(4)s/501(c)(5)s/501(c)(6)s · Public charities, including public and community foundations, can also collaborate with and fund (c)(4)s, (c)(5)s, and (c)(6)s. · Remember, your tax-exempt status follows your organization into any coalition work, so (c)(3)s must track any lobbying they engage in on behalf of or in support of the coalition and continue to stay within their lobbying limits. · All joint activities and campaigns must be nonpartisan, and any grants from a c3 to a c4 must prohibit the use of funds for partisan political activity. · The IRS will count the full grant from a c3 public charity to a c4 as a (c)(3) grassroots lobbying expenditure, unless the grant agreement explicitly prohibits the use of funds for lobbying or states what portions may be used for direct and for grassroots lobbying. 501(c)(4)s/501(c)(5)s/501(c)(6)s & 527 political organizations · 501(c)(4)s, and all other corporations, should avoid making monetary or in-kind contributions to a political organization or candidate. These types of contributions are prohibited in federal elections, as well as in most state and local elections. · However, 501(c)(4) corporations may establish a traditional federal PAC via a Separate Segregated Fund. o 501(c)(4) corporations may not contribute to this federal PAC or any other political organization, but they can pay for a connected SSF's administrative costs. o There are other special limitations for this type of PAC, including that it can only raise funds from the connected organization's bona fide members and its executive and administrative personnel and their families. Resources · Alliance for Justice, The Connection: Strategies for Creating and Operating 501(c)(3)s, 501(c)(4)s, and Political Organizations (See p. 11 for chart comparing tax-exempt organizations) · Alliance for Justice, Focus on Foundations · Alliance for Justice, An Introduction to PACs · Alliance for Justice, How to Fund a 501(c)(4)