“The Least Appreciated Most Important Thing”

That’s how our legal expert describes recordkeeping in the preface to our newest resource, Keeping Track: A Guide to Recordkeeping for Advocacy Charities (PDF). Maintaining accurate records is not the most glamorous activity a 501 (c)(3) can engage in, but it’s necessary. This is always the case, of course, but for public charities that engage in lobbying, good recordkeeping is vital for complying with federal law.

We published “Keeping Track” to help the staff, officers, and board members track the lobbying activities of nonprofit organizations and report those activities to the IRS. Organizations that have made the 501 (h) election will find “Keeping Track” most useful. However, the guide also contains relevant information for charities who measure lobbying under the “insubstantial part” test.

There’s also guidance about which method is the best for your organization, including the “Top Five Tips” for measuring lobbying from national experts.
In addition to meeting IRS requirements, “Keeping Track” identifies other benefits of recordkeeping:

• Helping raise funds.
• Protecting against false accusations.
• Managing staff time.

The guide draws on methods used by Alliance for Justice and others to offer recommendations for recordkeeping systems. Included are sample forms, and instructions for multiple options for tracking staff time, overhead expenses, and direct costs.

Lobbying is an important means for many 501(c)(3) public charities to promote their agendas and speak up for the often-vulnerable populations they represent. At AFJ, we encourage nonprofit organizations to engage in nonpartisan lobbying activities. Keeping accurate records is a good first step toward becoming confident in your organization’s capacity to lobby effectively. 

Download Keeping Track: A Guide to Recordkeeping for Advocacy Charities (PDF) to learn more.

Grantmaking Workshop: Supporting Advocacy in an Election Year

Funders: Did you know that your foundation can support advocacy efforts, even in an election year? 

On April 5 in Oakland, CA, the Alliance for Justice will be presenting a training geared toward funders to explore how various advocacy activities -- including lobbying and nonpartisan electoral work -- are vital to furthering the goals of nonprofits and foundations. The session will explain the legal rules governing such activity. We will review the types of activities foundations may legally fund and those they may conduct themselves, all while addressing why foundation support for advocacy is so important.

Learn how your foundation can use its expertise and resources to help make better public policy in California. You’ll come away understanding that foundations, both private and public, can safely and legally support the advocacy of their grantees. You’ll also learn how foundations themselves can engage in activities that educate the public, policymakers, and candidates on important issues confronting California and the rest of the country.

This workshop is open to members of Northern California Grantmakers, funder members of the Bay Area Asset Funder Network, as well as regional funders. To register, click here.


For those funders who are interested in learning more about these issues but unable to attend this training, check out the following free PDFs from Alliance for Justice:

• Private Foundations May Advocate!

• The Downside of Private Foundations Using Restrictive Grant Agreements

And also consider purchasing this AFJ publication:

• Investing in Change

 

Daily Digest 3/21/12

• Passing the nonprofit test: A guide for nonprofit news outlets on how to get 501(c)(3) status [Nieman Journalism Lab]

Daily Digest 3/8/12

• FEC moves on outdated rules [Politico]
  
  
• It's all about "advocacy", foundation director tells Sullivan NFP summit [Mid Hudson News]
  
  
• Pro-Choice Lobby Day pits activists against personhood measure and more [Denver Westword]
  
  
• Scrutiny of political nonprofits sets off claim of harassment [Pittsburgh Post-Gazette]

Daily Digest 3/6/12

• FCC close to decision on disclosure of political ads; Super PACs seen as benefiting [BNA] (subscription required)
  
  
• Squeamish nonprofit boards: How to move them to the big policy questions [Nonprofit Quarterly]
  
  
• California:  Teachers union leads in record year of lobbying lawmakers [Los Angeles Times]
  
  
• FEC set to hear from election lawyers on plan to ax campaign spending rules [BNA] (subscription required
  
  
• IRS battling conservatives over tax exempt status [Times Union]

Foundation Funding for International Advocates

While I think foundation  funding for advocacy is critical to our democracy and  I am a huge fan of foundations that fund nonprofits willing to take politically unpopular positions, the lawyer in me also has to balance that support with a thorough legal analysis.  Our friends at Harmon, Curran, Spielberg + Eisenberg posted this helpful analysis of the legal considerations in funding international advocates.  The article suggests prior to funding advocates in other countries, a foundation should consider the following:

• The grant recipient or even the U.S. funder may be required to register under lobbyist registration statutes; in Canada these are in effect at the federal level and in each province.
• Foreign libel laws may be significantly less protective of speech than those in the U.S.
• Operating in a foreign country may trigger a host of requirements such as taxes on business activities, business licensing, and employment matters.

This article is a nice complement to our  resources on international grantmaking and supporting international advocacy.

Daily Digest 3/1/12

• Secretary of State Scott Gessler rewrites Colorado campaign finance laws [Denver Post]
  
  
• How institutional philanthropy can support the Occupy Movement [Nonprofit Quarterly]
  
  
• Florida voter restrictions challenged [Politico]
  
  
• What donors want - but don't often get [Chronicle of Philanthropy]
  
  
• Supreme Court lets stand decision upholding Maine law on PAC registration [BNA] (subscription required)

Don’t Let Voter ID Laws Stop You from Registering New Voters

Voter registration and education may be two of the most important nonpartisan election activities of 501(c)(3) organizations. The connection and trust that 501(c)(3) public charities have with the communities they serve is unparalleled, putting them in a unique position to encourage their communities to participate in the democratic process by exercising their right to vote. In 2011, three states (Kansas, Mississippi, and Rhode Island) passed new voter ID laws, while four other states (Alabama, South Carolina, Tennessee, and Texas) stiffened existing voter ID laws. Several other state legislatures are currently considering similar legislation or have voter identification ballot measures. These laws will significantly affect voter participation for hundreds, if not thousands, of people that are eligible to vote. So, it’s important to know what 501(c)(3) organizations can do to continue their non-partisan voter registration drives or Get-Out-the-Vote (GOTV) efforts in this new environment.

First, know what your state requires for voter registration drives. While it is completely within a 501(c)(3) public charity’s right to register voters and encourage them to vote, it’s imperative that an organization understand the state rules regarding voter registration and GOTV. These rules can typically be found at your Secretary of State’s website or with the state’s Department of Elections. In addition, you can check out Alliance for Justice’s State Law Resources to learn more about many state’s voter registration laws.

Second, learn if your state has passed voter ID laws. If so, find out what requirements your state has for voters to participate in the election. Most voter identification laws fall into three categories: strict photo ID, photo ID, and non-photo ID laws. Additionally, many states have legislative provisions in place that require free photo ID’s to be made available to eligible voters. Once you identify the type of law that is in place, it’s important to educate potential voters on those laws prior to registration or during your registration efforts. The Lawyers’ Committee for Civil Rights Under Law provides a chart with identification requirements for voting and registration by state. Click this link to view the chart.

Lastly, remember the basic rules that 501(c)(3) public charities must adhere to when engaging in voter registration efforts: you must not make any suggestion of which candidate to vote for, you must never make reference to a political party or a candidate in your registration or GOTV efforts, the voter registration services should be made available to everyone, and you may only target areas to work in for nonpartisan reasons. For example, choosing a location near the area your organization serves or working to register communities and populations that are typically underrepresented at the polls (low-income, minority, homeless, or student populations), would be an acceptable targeting criterion. It would not be acceptable to base your targeting based on political party or because of a district or state’s status as a “swing” district or state.

Despite the onerous nature of many of the new photo ID requirements, 501(c)(3) public charities can play a crucial role in reducing the disparate impact of those laws and insuring that every member of the constituencies we serve, fully exercises their right to vote. For more information and guidance on electoral activity for 501(c)(3) public charities, consult our Electoral Activity resources. To learn more about voter ID laws in your state and for helpful resources on voter protection, visit the Election Protection Coalition.