On this episode, we’re taking a deep dive into election season advocacy rules. While you already know from previous episodes that 501(c)(3) public charities are not allowed to support or oppose candidates for public office, you may not know how the tax code defines a “candidate” and which public offices could trigger tax code electioneering rules.  

Our Attorneys for this Episode   

Leslie Barnes   Jen Powis  Quyen Tu 

Show Notes 

• Who is a candidate? 

• What is a public office? 

• Holding elected officials accountable doesn’t always have to end when they “declare candidacy” 
• Who is NOT a candidate? 

Resources 

• Rules of the Game: A Guide to Election Related Activities for 501(c)(3) Organizations 
• Who is a Candidate (BA Blog Post)  
• IRS’s EO CPE Text, 2002 Election Year Issues, Judith E. Kindell and John Francis Reilly 

On this special episode… we revisit how nonprofits can make their voice heard when there is a vacancy on the Supreme Court or any appointed judicial seat.  

Our attorneys for this episode 

Tim Mooney 

Natalie Ossenfort 

Quyen Tu 

Opening Thoughts 

After the announcement that U.S. Supreme Court Justice Stephen Breyer will retire pending confirmation of his successor, groups are gearing up to influence President Biden’s nomination and the Senate confirmation vote. But before we talk about our advocacy and the rules of the game for advocacy in this area, we wanted to share the statement of AFJ President Rakim Brooks on Justice Breyer: 

Justice Breyer has always been one of the most active members of the bench — drawing as many laughs as any justice in recent history. His jurisprudence, however, has had the quiet dignity of a justice who understood that the proper role of the Court is to defer to the people and their elected representatives to decide our democracy’s most important questions. Time and time again, he has stood up against the wealthy and powerful to protect the fundamental rights and legal protections of millions of Americans.   

Read more from the AFJ statement 

Shownotes  

• Work supporting or opposing a judicial nomination like SCOTUS counts as lobbying.  
• When does the meter start running for 501(c)(3) public charities?  
• Types of lobbying 
• Do nonprofits have to worry about the rules around elections? 
• AFJ and AFJ Action’s advocacy 

Resources 

• Our new home for all of our resources on advocacy for judicial nominations  
• President Biden’s Potential Supreme Court Shortlist (AFJ) 
• Election Checklist for 501(c)(3) Public Charities: Ensuring Election Year Advocacy Efforts Remain Nonpartisan  
• Accountability Advocacy for 501(c)(3)s  

Bolder Advocacy’s TA hotline: 866-NP-LOBBY 

Email us at advocacy@afj.org  

Our website is bolderadvocacy.org   

On this episode we’ll share some tips for 501(c)(4) organizations, those nonprofits the IRS calls Advocacy or Social Welfare Organizations. Whether your public charity has an affiliated 501(c)(4) or you work for a stand-alone 501(c)(4), these nonprofits must provide the IRS and the public with their financial and programmatic information annually. And we’re going to talk about how c4s can comply with the IRS requirements, some of the new developments that allow for protection of donor disclosure, and some of the information we, the public, can glean from these reports. 

Attorneys for this episode:  Quyen Tu, Tim Mooney, and Leslie Barnes 

Key Takeaways: 

• 501(c)(4) with annual gross revenue over $50,000 must file an information return with the IRS – either a Form 990 or Form 990 EZ. 
• Starting with FY 2020 annual returns, 501(c)(4) organizations are no longer required to disclose their donors to the IRS or public. 

• 501(c)(4) organizations must still provide copies of certain financial documents to the public upon request.  
•  Don’t forget other reporting requirements-state and federal lobbying and campaign finance requirements  
• These rules apply to 501(c)(5) and 501(c)(6)s as well 

Resources:   

• Give Me Your 990 
• 501(c)(4) Reporting: Where Are Donors Disclosed 
• IRS website: Public Disclosure and Availability FAQs  
• IRS Instructions for Schedule C, Form 990 
• Technical Assistance Hotline number 1-866-675-6229 (866-NP-LOBBY) or email us advocacy@afj.org or fill out our request form here. 

On this episode of the pod, we’re going to walk you through the types of information you can get from a 990. You’ll hear how that information is helpful to a variety of individuals including: a new Executive Director, board members, the press, staff, job applicants, donors, and more. 

Our Attorneys for this Episode 

• Jen Powis
• Leslie Barnes
• Quyen Tu 

Shownotes 

• Why nonprofits are required to publicly disclose certain legal and financial information. 
• The different kinds of Form 990s including: 
  • Form 990 
  • Form 990 EZ 
  • Form 990-N 
  • Form 990-PF 

• When are Form 990s due? 
• What are the penalties and fines for not filing?   

• What can you find in a 990? 
  • Identity, Tax Status, and Tax Year 
  • How Much Income Did the Filer Receive and From What Sources? 
  • How Did the Filer’s Total Expenses Break Down?  
  • What Can You Tell from Net Assets? 

• Number of employees and board members, organization’s website, and EIN  
• What Kinds of Programs Does the Filer Run and How Much Does It Spend on Them? 
• Good Governance – Conflict of Interest, Whistleblower, Record Retention and Compensation Policies 
• Who Are the Filer’s Board Members, Officers, Key Employees, and How Much Does Its Top Staff Get Paid?   
• Did the Filer Initiate Some New Activity, Change Its Processes for Governing or Engage in Any Excess Benefit Transactions? 
• Did the Filer Engage in Any Self-Dealing Transactions During the Year?  
• Does the Filer Lobby? 

• When nonprofits must provide copies of financial documents to the public 
  • In-person requests 
  • Requests in writing 

• Charges for copying and mail must be arranged in advance
• Fines for noncompliance 
• Filers who share their 990s on their website are not obligated to produce copies upon request 

 As a reminder, this episode is just about the tax filing to the federal government (the 990) at the end of your fiscal year. Each state may also require a nonprofit public charity to file other types of forms, perhaps a copy of the 990, or some other tax filing. So make sure if you’re a staff person that you work with your bookkeeper to understand all the end of the year filings you need to provide.  

Resources  

• Guidance on how to complete a Form 990 from the IRS 
• Give Me Your 990  
• Keeping Track: A Guide to Recordkeeping for Advocacy Charities 
• Where to look for Form 990s:  
  • Nonprofit Explorer by ProPublica 
  • GuideStar  
  • IRS 
• Apply for an Employer Identification Number (EIN) Online