On this episode, we walk through the ins and outs on why you’d want to form a 501(c)(4) to get things done as a nonprofit advocate. Because (c)(4)s are effectively the multi-tool of nonprofits, they can do a lot more than you might even think. But is it the right choice for your needs? This is part one of a two-part series.

 

Lawyers for this episode 

Tim Mooney 

Ronnie Pawelko 

Leslie Barnes 

 

Shownotes 

• What is a 501(c)(4)? 
• How to figure out if a nonprofit is a (c)(4)  
• Why would you want a (c)(4)? 
• Benefits of a (c)(4) 
• Downsides/Costs of a (c)(4) 
• Should We Form One?  

 

 

Resources 

Why create a 501(c)(4)? 

501(c)(4) Strategy and Discussion Guide 

Considering Starting a 501(c)4? Case Studies 

Primer on Social Welfare Organizations: Using 501(c)(4) Organizations for Good 

Power of Collaboration 

Starting a 501(c)(4) organization  

How to operate a 501(c)(4) 

The Connection 

Comparison of 501(c)(3) and 501(c)(4) permissible activities 

Accountability Advocacy: How 501(c)(4)s Can Hold Elected Officials Accountable for Their Actions 

Why (c)(3)s and (c)(4)s need to work collaboratively 

Sample Timesheets 

Sample Cost Allocation Agreement 

Life Cycle of a Social Welfare Organization | Internal Revenue Service (irs.gov) 

On this episode, we’re picking up a topic we talked about months ago: Redistricting. Last time, we talked about the general process for redistricting, and we encouraged our nonprofit community to learn how the new maps would be drawn in their state or their local district.   

This time, we’re going to look at how the nonprofit community can advocate for their mission and their own community no matter the process in your home state, and regardless of where your state is in the redistricting process. We also wanted to lift up that historically, how we encourage voting or limit voting in America is also through the lens of discrimination.   

  

Our Attorneys for this Episode:  

Jen Powis  

Leslie Barnes 

  

Show Notes 

• How the census, which is required to proportionally represent an entire state’s population, encountered a growing problem that politicians couldn’t fix for decades. 

• How the Supreme Court in conjunction with citizen action in the 1960’s addressed this issue, which resulted in the “One Person One Vote” doctrine. 
• How redistricting election maps works and how it differs by state. 
• Regardless of your state’s system to draw maps, your nonprofit can play a vital role in protecting your community’s right to vote and to participate in policy-making. 
• Current day challenges in redistricting include high population densities, whether to count undocumented residents or only US citizens, and questions on equity and race. 
• How some nonprofits are engaging in the redistricting process and how your organization can get involved as well. 

• What does gerrymandering and “packing” mean? 
• What are “communities of interest” and what is “contiguity”? 
• The importance of knowing the computer model your state uses to create maps  

 

Bolder Advocacy Resources  

https://www.usccr.gov/files/pubs/2018/Minority_Voting_Access_2018.pdf 

https://americanhistory.si.edu/democracy-exhibition/vote-voice/getting-vote/demanding-vote/one-manone-vote 

https://bolderadvocacy.org/resource/standing-up-for-your-community-influencing-the-redistricting-process/ 

https://bolderadvocacy.org/resource/mapping-the-future-the-redistricting-process-and-private-foundations/ 

 

Other resources: 

https://www.ncsl.org/research/redistricting/redistricting-systems-a-50-state-overview.aspx 

https://www.everycrsreport.com/reports/R45951.html 

https://funderscommittee.org/files/Collaborative_RedistrictingGuide_2.pdf 

https://www.fairdistrictspa.com/updates/pa-prison-gerrymandering 

https://redistricting.lls.edu/wp-content/uploads/Basics-English10.pdf 

 

On this episode, we’re going to discuss how nonprofits can support their communities in the wake of natural (and other types) of disasters. Whether it’s dealing with preparations for flooding, hurricanes, and wildfires or helping communities get back on their feet after political conflict, nonprofits can and should be ready and able to help by mobilizing volunteers, helping communities navigate government relief programs, providing financial assistance, and more. 

Attorneys for this episode: Natalie Ossenfort, Quyen Tu 

Topics: 

• Why one shouldn’t overlook the importance of local/community nonprofits  
• The importance of community foundations in helping rebuild after a disaster 
• A forum where organizations share knowledge and resources throughout the disaster cycle 
• September is National Preparedness Month 
• Tax Relief in Disaster Situations 

     

 

Resources: 

• From the IRS

 

• Disaster Relief: Providing Assistance Through Charitable Organizations 

• National Voluntary Organizations Active in Disaster (National VOAD) 

• Global Giving: why giving cash, not stuff, is more effective after a disaster 
• Nonprofit Advocacy in the Wake of a Natural Disaster Blog
• Bolder Advocacy’s TA hotline: 866-NP-LOBBY 
• Email us at advocacy@afj.org 
• Our website is bolderadvocacy.org  

On this episode, we are covering advocacy during the COVID-19 pandemic. COVID is wrecking-havoc on our health, our healthcare system, the way we conduct business and engage in community outreach, on educational institutions, and more. The good news is that nonprofit organizations are well-equipped to provide a voice on how to effectively respond to the challenges of a global pandemic. 

Attorneys for this episode:  Jen Powis, Natalie Ossenfort, Leslie Barnes 

 

Topics: 

• Quick nonprofit advocacy refresher  
• How does this relate to COVID?  

• Examples of how nonprofits are advocating during COVID-19
  • Housing – Catholic Charities, Causa Justa
  • Decarceration – Faith in Texas, Courtwatch PG
  • Public Education – ACLU
  • Democracy – Civic TN 

 

 Resources: 

Factsheet: Administrative Advocacy  

Factsheet: Public Charities Can Lobby  

Blog: Nonprofit Advocacy & COVID-19   

Influencing Public Policy in the Digital Age  

Accountability Advocacy for 501(c)(3)s  

Rules of the Game 02: Holding Elected Officials Accountable 

 

On this episode… the Supreme Court made some news as it closed out its spring term. In particular, the Court ruled in two big cases that impacted nonprofits. Now, a few months later we discuss what the holdings mean for nonprofits going forward. 

Attorneys for this episode:  Jen Powis, Ronnie Pawelko, Tim Mooney 

Topics: 

Americans for Prosperity Foundation v. Bonta 

Brnovich v. Democratic National Committee 

Resources: 

AFP holding (PDF) 

Brnovich holding (PDF) 

The Supreme Court’s Latest Voting Rights Opinion Is Even Worse Than It Seems (Slate) 

On this episode, we’re talking about recall elections. A recall is a procedure that allows citizens to remove and replace a public official before the official’s term of office ends. Historically, recalls have been used most frequently at the local level and this year, and this year we’re seeing a very prominent effort in California. Can nonprofits advocate in a recall election?

Attorneys for this episode:  Quyen Tu, Natalie Ossenfort, Tim Mooney

 

Topics:

History/Development of Recall

What can nonprofits do and say in recall elections?

Example: Mayoral Recall in Portland, Oregon

Example: Gubernatorial Recall in California

 

Resources:

Ballot Measures and Recalls: Basic Rules for 501(c)(3) Public Charities, 501(c)(4)s, and Unions

National Conference of State Legislatures

The Rules of the Game

Episode 1 – “Can We Say That?”

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

Email us at advocacy@afj.org

On this edition, our first interview. These will be chats with nonprofit leaders, discussing the ins and outs of advocating on the issues of the day. We’ll mix these in with our episodes on rules and advocacy in action as a way to bring insight to the rules we cover, and elevate the voices of the groups we work with and the folks making substantive policy change through their advocacy. For our first interview, Alliance for Justice president Nan Aron.

As loyal listeners to this show know, we’re attorneys with AFJ’s Bolder Advocacy Program. So we brought Nan on to talk about Bolder Advocacy’s fascinating 80s era origin story, its early successes and challenges, how we’ve evolved through the years, and what Nan’s optimistic about as she prepares to move on to her next adventure.

Learn more about Nan.

 

 

On this episode, we chat about working in coalitions – one of the most effective ways for advocacy organizations to share and maximize resources to make real policy change. We go over five things to consider as you form your coalition to effectively work together.

Attorneys for this episode:  Tim Mooney, Jen Powis, Ronnie Pawelko

Topics:

• Structure
• Decision making
• Dealing with conflict
• Funding
• Assests, lists and websites

Resources: 

• Rules of the Game 29: Affiliation and Coalition Basics
• The Connection
• Coalition Checklist
• Technical Assistance

Team work makes the dream work.  While nonprofits normally have their individual policy agendas and platforms, sometimes working with an affiliated organization, most also join in coalition with others in order to more effectively drive policy change.  For example, immigration right groups may join with groups that advocate for kids to better protect our youngest undocumented immigrants. 

Today’s show addresses the differences between c3 and c4 types of organizations so that coalitions can think more strategically about how to use both within a campaign. 

 

• The Different Types of Nonprofits That We’ll be Talking About Today.
• Tax lawyers are not creative when it comes to naming conventions. 501(c)(3) refers to the Tax Code provision that defines the creation of a nonprofit public charity.
• That’s right, there’s 501(c)(1) through ((c)(29).
• 501(c)(3) organizations are those typically referred to as nonprofits: and are designed to be tax exempt so long as they are organized and operated for religious, charitable, scientific, literary, or educational purposes. We’ve linked to the law in our show notes so you can see the long-winded version.
• Organizations that are also tax exempt but found under 501(c)(4) of the Tax Code are referred to as social welfare organizations
• A social welfare organization is defined as a civic leagues or an organization operated exclusively for the promotion of social welfare.
• These 501(c)(4) organizations will look a lot like the public charities and are often referred to as nonprofit.
• The key takeaway is that there are lots of different types of nonprofits—organizations that do not pay a federal income tax on the money they collect at the end of the year. And because these organizations are under different sections of the tax code, different rules apply.
• That’s why tax lawyers are very creative when it comes to strategy–you can find all sorts of ways to craft language to meet what an organization can do, and to use money to its fullest extent possible, even when it is restricted in use. 
• Lobbying and Partisan work
• A c3 can lobby and do advocacy but is expressly prohibited from engaging in partisan work, anything that supports or opposes candidates running for public office.
• A c4 must have as its primary purpose the same types of activities that a c3 can do (advocacy and lobbying) but can also engage in partisan candidate work during elections so long as it is only a secondary activity for the organization
• Secondary purpose
• What is secondary? Well, generally that means less than 50% but conservative attorneys often recommend that partisan candidate work is less than 40% of the organization’s total activities. 
• So a c4 can do everything the c3 can do but can also hold candidates accountable, endorse candidates, compare candidates to the org’s issues

 

• Affiliated structures: Common Paymaster and other behind the scenes details (Ronnie)
• A c3 and c4 can also be related organizations and share employees and resources
• common paymaster, grants and resource agreements are the behind the scenes details that make affiliated organization relationships work–with really only the common paymaster visible to the staff as it results in one paycheck.
• So the code provides 4 different ways for common paymasters to be supported, and one of the easiest is that the c3 and c4 have at least 50% overlap on the board. Another one of the tests is that the organizations share 30% of its employees.  
• When it comes to engaging in advocacy, affiliated organizations face many of the same issues when deciding what activities to engage in. The primary issue is always how to ensure the c3 is following the rules that apply to its tax structure.
• Example of Coalition Work with c4
• Sometimes the back office flow of money needs to be discussed in coalition when talking about a coalition where the groups need to be more strategic in who pays what. Because a c3 coalition member has to be clear about how its money and name are being utilized. 
• For example, sometimes the coalition members agree to work together on a policy issue but recognize that each member is going to do different types of activities. Always be clear with your brand and where your dollars are being used.  Or like a loose coalition, mostly acting under your own name but strategically trying to stay together and pull different levers.  The goal is to not work at cross purposes or undermine each other.
• Pledge Cards by the c4.
• A c4 organization can compare its mission to whether the candidate agrees with its mission. A c3 cannot.
• Example, Vote for ProChoice Candidates Like Candidates x.
• When there’s a flyer that uses logos, the c3 logo cannot appear on a coalition flyer that is partisan.
• Knocking on Doors
• A c4 organization could wear the nonprofits shirts and provide volunteers to specific campaigns with their issue.
• For example, lets say it is a pro-immigration candidate and the c4 organization provides refugee services. The c4 can walk with flyers saying this candidate supports refugees.
• In coalition, the c3 has to think about the political perception issues when working in coalition with c4 organizations that do this type of work.
• Sharing Resources. When a c4 organization works with a c3 organizations, sometimes the c3 organization will provide a grant for lobbying purposes to the c4.  The c3 has to count that money on its 990 as lobbying, as does the c4, but in this way, the c3 can sometimes more easily account for policy work since it is providing a lump sum.  Sort of like a contractor relationship.  Similarly, if the dollars aren’t all going to lobbying, the c3 and coalition must know where the money is going.  The budget for the coalition has to be understood by all the parties.  For example, the coalition could issue the “dues request” or “funding request” outlining how much is lobbying, education, etc.
• Websites: A shared coalition website has to remain nonpartisan and cannot have the endorsement slate.  The two click idea –that the c3 reference to the c4 website land on something c3 permissible.  Or even use a pop up window.

 

Resources at bolderadvocacy.org

https://www.law.cornell.edu/uscode/text/26/501

BA Coalition Checklist: https://bolderadvocacy.org/wp-content/uploads/2018/03/BA-Coalition-Checklist-1.pdf

https://www.bolderadvocacy.org/wp-content/uploads/2016/12/501c4-Strategy-and-Discussion-Guide.pdf

 

On this episode of Rules of the Game, we’re going to talk about money. Because at this point you already know that 501(c)(3) public charities and 501(c)(4) social welfare organizations are allowed to lobby and pursue robust advocacy agendas, but how can they secure funding to make their short and long-term advocacy goals a reality? Stick with us for the next few minutes, and we’ll have the answers you are looking for. 

 

Our hosts for this episode: 

Natalie Ossenfort  

Jen Powis 

 

MISCONCEPTION #1: Foundations are not allowed to fund lobbying – REALITY: Both public and private foundations can fund grantees that lobby 

• COMMUNITY FOUNDATIONS 

• Just another type of public charity 
• Allowed to engage in lobbying and directly fund grantee lobbying activities 
• Lobbying grants will count against lobbying limit of foundation and public charity grantee 

• PRIVATE FOUNDATIONS 

• Rules for private foundations are a bit more restrictive than those for public charities / community foundations 

• Not allowed to engage in lobbying and effectively prohibited from earmarking grants for lobbying purposes (if they do these activities, the foundation and managers are subject to a prohibitive excise tax) 
• This does not mean that private foundations can’t fund grantees that lobby: 

• General support grants are not earmarked for any particular purpose, so a grantee could choose to use those funds for lobbying without exposing their private foundation funder to an excise tax  
• Specific project grants are another option. So long as the grantee’s project budget clearly delineates between lobbying and non-lobbying expenses, the private foundation can fund up to the non-lobbying portion of the grant request without earmarking funds for lobbying / exposing itself to an excise tax.  

• Grantees can go to multiple PF’s, each can give up to the non-lobbying portion of the grant request. 

• GENERAL 

• Both private and public foundations must prohibit their funds from being used for partisan political purposes / support or opposition of candidates 
• Grantees should carefully check the language of their grant agreements to see if lobbying is prohibited. Language that says that the funds are “not earmarked for lobbying” is not the same as language that says that lobbying is prohibited. 
• EXAMPLES that sound restrictive, but actually permit lobbying:  

• “Lobbying and Non-Permitted Uses: This grant is not in any way earmarked to support or carry on any lobbying or voter registration activity. Grantee warrants that none of these funds will be used to influence legislation unless permitted by law.” 

• “This grant is not earmarked for influencing legislation within the meaning of IRC Section 4945(e), and the foundation and Grantee have made no agreement, oral or written, to that effect.” 

 

MISCONCEPTION #2: Foundations can’t fund public charity voter registration drives 

• Both private and public foundations can fund the NONPARTISAN voter registration activities of public charities, but the rules for private foundations can be a bit complicated… 

• VR Drive must be nonpartisan, over multiple election cycles, in five or more states and cannot be subject to conditions requiring use of the funding in a specific state or election cycle. 

• There are also requirements related to the grantee’s finances (e.g. at least 85% of organization’s income must be spent on activities relating to the purposes for which it was organized) 
• Public charities can receive an advanced ruling from IRS certifying their ability to receive private foundation voter registration grants (confirms that organization meets the requirements of sec. 4945(f) of tax code) 

 

MISCONCEPTION #3: Foundations are not allowed to fund 501(c)(4)s. REALITY: Both private and public foundations can fund 501(c)(4)s…. if they know the rules 

• COMMUNITY FOUNDATIONS 

• Can fund any work conducted by 501(c)(4) that the community foundation itself would be allowed to engage in (e.g. lobbying, but NOT partisan political activity) 
• IRS presumes that grant to 501(c)(4) is for lobbying  

• needs to count against public foundation’s grassroots lobbying limit (unless grant was expressly made for direct lobbying purposes and foundation can show that funds were spent on direct lobbying) 
• Grant will not be counted as a lobbying expense if it is a controlled grant expressly given for non-lobbying purposes (prohibits lobbying with grant funds) 

• PRIVATE FOUNDATIONS 

• Must use “expenditure responsibility” when making grants to organizations that are not 501(c)(3)s 

• Must conduct a pre-grant inquiry and execute a written grant agreement. The foundation must ensure that funds are spent only for the purposes expressly agreed upon. 
• Must obtain detailed reports from grantee about how funds are spent 
• Must provide complete report of expenditures to IRS on annual 990-PF 
• Must prohibit partisan political activities AND lobbying. Because of this, it’s often easier for 501(c)(4)s to raise lobbying funds from individuals and community foundations. 

 

 

Resources 

Foundation Advocacy Grants: What Grantees Need to Know 

Investing in Change: A Funder’s Guide to Supporting Advocacy