Rules of the Game: The Bolder Advocacy Podcast

When nonprofits speak out on issues in the public square, the line between education and electioneering can get blurry – especially during election season. On this episode of Rules of the Game, we break down what the law allows when organizations comment on statements made by candidates and campaigns, and how those rules shift when addressing the actions of incumbents who may also be on the ballot. From issue advocacy to the risk of impermissible political intervention, we walk through practical scenarios and key guardrails to help your nonprofit stay compliant while engaging in advocacy to advance your mission.

Shownotes

Basic rule: 501(c)(3) organizations are prohibited from supporting or opposing candidates for public office, which means that their advocacy and actions have to remain nonpartisan.

· Black and White: 501(c)(3)s can't endorse candidates, and they can't explicitly tell people who not to vote for. On the other hand, nonprofits can emphasize the importance of voting in a nonpartisan way, and they can continue to educate voters about issues core to their missions without suggesting who people should vote for in an upcoming candidate election.

· Shades of Gray: IRS utilizes a facts and circumstances analysis to determine whether a nonprofit's communication is permissible or a violation of the tax code's electioneering prohibition for 501(c)(3)s. While not an exhaustive list, some facts and circumstances the IRS might consider include…

o Timing of the communication

o Targeted audience

o How the message relates to what candidates and political parties are saying, and more!

· The IRS has also indicated that messaging that includes distorted facts, disparaging language, or statements not aimed at developing the audience's understanding of a mission-related issue can indicate a violation of the law.

Commenting on Candidates and Campaigns

· No clear guidance from IRS on how to do this safely, but based on the required facts and circumstances analysis, best practices could include:

o Focusing on what was said (the issue), not who said it (the candidate)

o Avoiding discussions about candidate qualifications or whether someone is a good or bad candidate

o Scripting responses before talking to reporters or the public (since you may very well get a question related to the election and who people should vote for)

o Avoiding comments about a candidate's record or personal characteristics

o Avoiding references to voters and the upcoming election

o Not comparing your position on an issue to where the candidates stand on that issue

· Remember: It is permissible to monitor what candidates say and do so that you can prepare for the future.

o The risk arises for 501(c)(3)s when they communicate in a way that could be perceived as attempting to influence the outcome of a candidate election.

· Examples[NRO1] :

o "What if Candidate X states during a candidate debate that "our community's water quality meets all safety standards." Can a local environmental justice 501(c)(3) correct the record if that statement is false?

§ Yes. The organization could clarify that the claim is inconsistent with recent state water quality reports. It could then point to publicly available testing data.

§ The key is to avoid discussing the particular candidate who made the statement and instead to focus on the issue itself. Use this as an opportunity to educate the public on issues core to your mission.

§ To minimize risk, avoid mentioning the candidate by name, issue disclaimers (reminders that you are a 501(c)(3) and that you do not support / oppose candidates for public office), and focus on issues in alignment with the organization's mission.

Commenting on the Actions & Statements of Incumbents

· 501(c)(3) public charities can criticize or praise the votes and official statements of current government officials. Best practices include:

o Focus on official actions only (without mentioning if an incumbent is up for reelection)

o Time communications to coincide with policy actions (as opposed to increasing praise or criticism in the days leading up to the election).

o Have a track-record of working on the issue, and make sure it's central to your mission.

o Include commentary on legislators and other government officials who are NOT up for reelection. If you focus solely on the actions of incumbents running for office, that can raise a red flag.

o Use nonpartisan criteria when deciding on which official actions and statements to call out and respond to.

o Exercise particular caution when commenting on an issue position that clearly distinguishes candidates in an upcoming election.

· Example:

o What if a mayor in a 501(c)(3)'s jurisdiction decides to support funding cuts to programs that provide housing to the unhoused and services for housing-insecure community members? Can the 501(c)(3) public charity chime in?

§ Yes. A 501(c)(3) could issue a press release criticizing the mayor's statement in support of funding cuts and urge the city to restore services where needed.

§ The charity would want to have a history of working on related issues to ensure the statement is in alignment with its mission and history of advocacy.

§ It would also want to avoid mentioning any upcoming elections or noting that the mayor is up for re-election.

§ In addition, it's important for the organization to comment on the official statement and action immediately, as opposed to waiting until just before candidate elections occur.

Resources

· Rules of the Game: Guide to Election-Related Activities for 501(c)(3)s

· Sample 501(c)(3) Organizational Policy for Election Season

· Praising and Criticizing Incumbents (Factsheet)

· Commenting on Candidates and Campaigns (Factsheet)

Primaries are taking place or may have already occurred where you are. More elections will take place from now until November so we thought it's a good time to talk about candidate appearances. We'll explain how (c)(3)s can stay nonpartisan while helping to educate voters and candidates by hosting candidates. (c)(4)s, you can of course do everything (c)(3)s can do and much more!

Attorneys for this episode

Quyen Tu

Victor Rivera

Brittany Hacker Leonard

Shownotes

• Why is this important?

• C3s are a trusted source of information and have a crucial role to play in election seasons, often in touch with the local community more, have an important role to play in bringing the candidates and their platforms to the voters, and also bringing information about the community and the organization's work to the candidates.

• Because of this, we often get questions about c3s holding debates, forums, site visits from candidates as ways to educate both the voters and the candidates themselves—and all of this great work can be c3 safe.

• Remember the general rule: c3s cannot support or oppose candidates for office

• Doesn't mean that you can't talk to candidates, or host candidates

• Different reasons you may have a candidate appear:

• In their capacity as a candidate: individually or debate/forum

• In another capacity: expert in their field, current elected official, celebrity

• They just show up at a public event

• Rules will be different depending on why they are there!

• Remember: document interactions with candidates, use disclaimers, and keep good records

• 7(c)(3)s holding candidate debates and fora

• Examples: CA gov, D.C. mayoral primary

• Do:

• Cover a broad range of issues

• Nonpartisan, independent questions and moderator

• Invite all viable candidates

• Make it open to the public for a diverse audience

• Don't:

• Ask for pledges

• Give anyone special treatment

• Only ask about your organization's narrow area of focus

• Continue to hold the "debate" if only one candidate can attend

• (c)(3)s hosting a candidate because of their candidacy (not debate format)

• Follow the same rules as debate—all invited and given equal opportunities in similar settings

• (c)(3)s hosting candidate for non-election reason

• Do not need to invite every candidate

• Make sure the candidate knows what capacity they are there in (which hat they are wearing)

• No fundraising or campaigning

• Use disclaimers!

• (c)(4)s and PACs hosting candidates

• Can host just one candidate in their capacity as candidate—will be c4's secondary purpose activity

• Can give site visits to just preferred candidates, can ask for pledges

• PACs may also host or sponsor candidate fundraising events

• Foundations: can fund (c)(3)s hosting nonpartisan candidate debates or appearances

Resources

• Rules of the Game

• Candidate Appearances: Foundations Can Host or Fund Nonpartisan Candidate Appearances

• Hosting Candidates at Charitable Events: Ensuring Candidate Appearances Remain Nonpartisan

• Nonpartisan Candidate Education: How 501(c)(3)s Can Talk to Candidates During an Election Year

• Sample 501(c)(3) Organizational Policy for Election Season

• 501(c)(4) Partisan Activities

With direct democracy becoming more important than ever in this political climate, we thought it was a good time to revisit ballot measures. From local park bonds to important state constitutional amendments, ballot measures have become important tools for policymaking, and nonprofits often play a huge role in supporting and opposing them. On this episode we do a deep dive on the details and how you can get involved.

Attorneys for this episode

Susan Finkle Sourlis Tim Mooney Natalie Ossenfort

Shownotes

What Are Ballot Measures, and Why Are They Important?

· According to Ballotpedia, as of April 5, 2026, 87 statewide ballot measures have been certified for the ballot in 35 states for elections in 2026.

· These initiatives will ask voters to weigh in on topics like redistricting, campaign finance, state budgets, school funding, the state judiciary, and more.

· Ballot measures are important advocacy tool to create policy change. They are a form of direct democracy.

The Law: Internal Revenue Code

· Ballot measures = pieces of legislation. If they pass, they become law.

· As a result, advocacy for or against the passage of a measure = lobbying (more specifically, direct lobbying since the public serves as a legislative body during the ballot measure process).

· Reminder: public charities can lobby, but they need to stay within Internal Revenue Code set lobbying limits.

o Default test: Insubstantial Part Test

o Optional test for most public charities: 501(h) Expenditure Test

· Under either test, one must express a view on legislation for a communication to be considered lobbying.

· Here are some ballot measure activities that would be considered lobbying:

o Asking voters to vote yes or no on a measure

o Posting social media messages either supporting or opposing a measure

o Raising money earmarked to defeat or win a measure

o Preparing materials that support or oppose a measure

o Targeting outreach to voters that are likely to support or oppose a measure in alignment with your organization's position

The Law: State / Local-Level Campaign Finance Considerations

· The ballot measure process varies by state.

o Some states only allow legislatively referred measures.

o Others (like OH, MI, AZ, and CA) allow citizens to initiate statewide ballot measures.

· It is essential that if your organization is planning to conduct activity surrounding a ballot measure, you abide by state law.

· Unlike the IRS, most states do not regulate ballot measure advocacy as lobbying, but rather this type of advocacy falls under state campaign finance law.

o Some states require reporting if an individual (or nonprofit) hits a certain spending threshold related to their ballot measure advocacy (hello, Texas!). Others require committee formation and registration if certain thresholds are met or if organizations join forces to advocate in support or opposition of a measure.

o States also often require specifically worded 'paid for by' and other disclaimers when advocating on a measure.

o Many states have already passed or are considering legislation related to ballot measure fundraising and who can contribute to ballot measure campaigns. Check your state's laws for details.

· IMPORTANT: Consult with counsel before embarking on a ballot measure campaign, so they can determine if your organization might need to register and report with state officials (or potentially form a committee).

· If a committee already exists and is in alignment with your organization on a measure, it may be possible to join forces and minimize the reporting burdens on your nonprofit.

Life of a ballot Initiative – signature gathering to passage to enforcement

· Before a ballot measure ever appears on the ballot, there's a long runway of activity—and for nonprofits, many of these activities count as lobbying for 501(c)(3) public charities and need to be counted against an organization's lobbying limits.

Citizen-Led Initiatives

1. Pre-signature organizing

2. Drafting the measure language

3. Signature gathering

4. Qualification for the ballot

5. Campaign phase

6. Election

7. Post-election enforcement & implementation

Legislature-Referred Measures

1. Legislature drafts and passes referral

2. Measure placed on the ballot

3. Campaign phase

4. Election

5. Post-election enforcement & implementation

Key Compliance Notes

• When does lobbying start?
• For citizen initiatives: typically, when signatures are circulated
• For referrals: at the legislative consideration stage and when the measure is submitted to voters

• Pre-signature activity
• Research
• Coalition-building
• Issue education

• Drafting language
• Usually preparation for lobbying
• Becomes lobbying if tied closely to an active campaign effort

• "Specific legislation" trigger
• Once a measure is clearly defined and advancing, it's treated like legislation for IRS lobbying purposes

• State law overlay
• Petition rules, disclaimers, reporting, and pay-per-signature bans vary widely
• Federal tax law ≠ state election law (you have to comply with both)

After the Election

• Implementation & rulemaking
• Agencies interpret and apply the law
• Nonprofits can engage in administrative advocacy (not lobbying for tax code purposes, but could trigger state registration and reporting)

• Public education
• Explaining what passed (or failed) and what it means
• Must remain nonpartisan if done by a 501(c)(3)

• Litigation
• Defending or challenging the validity of a passed measure in court
• Not lobbying
• Permissible for 501(c)(3) organizations

Working Together

· Many ballot measure activities happen in coalitions.

· These coalitions could include different types of nonprofit organizations. Some may be 501(c)(3) public charities, while others could have 501(c)(4), 501(c)(5), or other tax-exempt status.

o Remember, 501(c)(4)s and 501(c)(5)s have unlimited lobbying limits—this makes them a great ally in ballot measure work.

· A 501(c)(3), when engaging in ballot measure work, must do so in a nonpartisan way.

o Some examples of nonpartisan ballot measure work can include: circulating petitions, endorsing measures, registering voters, and more.

o It's important not to align your 501(c)(3)s position on a ballot measure with a candidate or political party.

o They should also avoid targeting voters based on how they think the voters will vote for candidates on the ballot.

· All joint lobbying activities, conducted with 501(c)(3)s and other types of organizations, should remain NONPARTISAN and not include suggestions of whom to vote for in candidate elections.

Ballot Measure Advocacy Funding

· Because ballot measure advocacy is often considered lobbying, private foundations cannot earmark funds for this activity, but public (community foundations) can.

· Consider approaching community foundations and individual donors to support your work.

o BE AWARE: Some states are considering or have already passed legislation that prohibits foreign national contributions to ballot measure campaigns (could kick in if your organization receives donations from foreign sources).

o Any donations earmarked for lobbying are not tax-deductible to the donor.

Resources

· Seize the initiative

· Ballot Measures and Public Charities: Yes, You Can Influence That Vote!

· Ballot Initiative Strategy Center (BISC) Trends Watcher

· BISC: 2026 Ballot Measures

On this episode of Rules of the Game, we dive into some of the most common – and pressing – questions we hear on our free nonprofit advocacy technical assistance hotline. From whether foundation funding can support voter registration efforts, to what nonprofits should know when attending rallies and advocating around local law enforcement cooperation with ICE, we break down the rules and offer practical guidance you can use to enhance your organization's advocacy and community participation in elections and other public policy activities. We'll discuss real world scenarios, and a few surprises drawn straight from questions advocate like you are asking every day.

Attorneys for this episode Tim Mooney Natalie Roetzel Ossenfort Quyen Tu

Shownotes

Question 1: How can 501(c)(3) organizations participate in voter registration activities, and where can we find funding to support this work?

• Voter registration is explicitly allowed (and encouraged): 501(c)(3) public charities can conduct voter registration drives if they are nonpartisan: no support for or opposition to any candidate or political party. This includes helping people register, providing forms, and sharing neutral information about how and where to vote.

• Stay strictly nonpartisan in execution: Activities must be offered equally to all eligible voters, without targeting based on partisan affiliation or coordinating with campaigns. Messaging should focus on civic participation, not persuading people how to vote.

• Integrate into existing programs: Nonprofits can weave voter registration into their regular services, including clinics, food distribution, schools, housing programs, etc. so long as participation is voluntary and not tied to receiving services.

• Train staff and document compliance: Provide clear guidance to staff and volunteers on what they can and cannot say/do, and keep materials and scripts neutral. Written policies help demonstrate compliance if questions arise. Remember to follow state law too!

• Use trusted resources and tools: State election offices, nonpartisan groups (like BA and League of Women Voters affiliates), and national civic engagement organizations offer compliant toolkits, forms, and training materials.

• Funding realities (and strategy)

• Private foundations can fund nonpartisan voter registration, but they face extra rules for "voter registration drives" under IRS definitions (multi cycle, multi state, etc.). Few private foundations fund at this level, so pursuing funding for voter registration drives may not work out.

• Community foundations (and other public charities), and individual donors are typically more flexible and practical funding sources for this work.

• Corporate philanthropy may also support civic engagement framed around community participation, equity, or access. Check the grant for scope and ensure funds are used strictly for nonpartisan activities.

Question 2: Our organization is considering having a presence at an upcoming rally. What should we know about this type of activity? Can we participate as an organization or as individual advocates working outside of the purview of our nonprofit?

• Understand that there are many interests and types of orgs participating

• Understand the goals of the rally

• Like Tim said, Educate your volunteers/staff who will be attending on what your (c)(3) needs to do

• Focus on policies

• No candidates

• facts and circumstances

• If (c)(3) staff are asked who they support in upcoming elections, they should avoid answering

• Organization v. individual capacity

• Reminder: state and local rules if this is a protest

Question 3: There's a proposal on the table in our community that would require local law enforcement to cooperate with ICE. Can we advocate against this? If so, what do nonprofit advocacy rules have to say about it?

Several states and local municipalities are considering proposals that would require law enforcement cooperation with ICE and others are considering policies that could significantly impact ICE operations. For example:

• In Tennessee, a new immigration-related bill (HB 2219) would require the Sherrif of each county to cooperate with ICE via a 287(g) agreement

• In Houston, Texas, the City Council is considering a proposal that would give Houston police officers the discretion to call ICE in relation to certain immigration warrants.

• In Salt Lake City, Utah, the City Council recently passed a new ordinance that limits nonresidential water consumption, complicating the opening of a new ICE detention facility in the city.

If your organization wants to chime-in, what rules should it be considering?

1. If you are attempting to influence a bill or proposed ordinance in your city, that activity could qualify as lobbying since it happens in a legislative context.

1. The tax code permits some public charity lobbying, but it limits how much lobbying they can do.

1. Whether your action counts as lobbying depends on which of two tests you use to measure your lobbying limits: insubstantial part test or 501(h) election since the definitions of lobbying differ under each test.

1. Legislative activities of these types could also trigger state and local-level lobbyist registration and reporting.

1. Make sure that all lobbying conducted by your public charity is properly tracked and reported, that you are staying within your lobbying limits, and that you are using funds that permit this type of activity.

1. If you are simply trying to influence an executive branch (e.g. local law enforcement) policy and not legislation, you will likely not need to count this activity against your lobbying limits, but it could still trigger registration and reporting.

Resources

Public Charities Can Lobby: Guidelines for 501(c)(3) Public Charities

What is Lobbying Under the 501(h) Election?

Practical Guidance: Nonprofit Lobbying

Election Checklist for 501(c)(3) Public Charities: Ensuring Election Year Advocacy Efforts Remain Nonpartisan

Sample 501(c)(3) Organizational Policy for Election Season

Election Activities of Individuals Associated with 501(c)(3) Organizations

Practical Guidance: Nonprofit Voter Assistance Series

Legislative season is underway, and we're seeing a wave of proposals that could significantly reshape the operating environment for nonprofits and advocacy organizations. We're tracking over 1,000 bills across the country, and while some of them do positive things, like make improvements to our electoral system or increase voter turnout, unfortunately, most of these measures are taking aim at impactful nonprofit advocacy. These proposals collectively reflect an erosion of the civic space in the nonprofit ecosystem. We're here to break down some of the key trends and help you stay informed about emerging twists in compliance.

Attorneys for this episode

Maggie Ellinger-Locke

Susan Finkle Sourlis

Natalie Roetzel Ossenfort

Shownotes

Federal Legislation

· The SAVE Act would require voter registration applicants to provide documentary proof of US citizenship and impose strict photo ID rules to vote in federal elections.

· Federal law is already clear that only US citizens are permitted to vote in federal elections.

· This legislation could disproportionately impact voters of color, married people who have changed their last names, and low-income voters.

State Legislation

· So far, we've seen over 150 bills filed in at least half the states, that seek to impact the voting process.

• Georgia's SB 586 proposes sweeping changes to state elections including early voting. Under current law voters are permitted to cast their ballot at any polling location in their county during the early voting period. But if this bill becomes law, voters would be restricted to just one polling location.
• In West Virginia, SB 90 would prohibit voters not affiliated with a major political party from voting in a primary election.
• In Kansas, HB 2438 would prohibit online voter registration unless a website uses a .gov domain or is explicitly approved by the secretary of state.
• Corporate Power Reset movement: The goal of this movement is to create an end run around supreme court precedent like Citizens United and Buckley v Valeo[NO1] [ME2] [SS3] by prohibiting all corporate, whether for profit or nonprofit, engagement with elections.[SS4] [ME5]

· Restricting foreign influence on ballot measure campaigns: Federal law already bans foreign national contributions to candidate campaigns, but these bills are seeking to extend the restrictions further, narrowing the funding landscape for direct democracy.

o During the 2026 state legislative sessions, we've seen 39 bills introduced in twenty states that would restrict foreign contributions to ballot measure campaigns.

o Some focus narrowly on majority foreign-owned businesses, but many target individuals and ballot question committees. These bills often require affirmative certifications that no foreign national funding is involved in an organization's ballot measure advocacy.

• Baby FARA bills: At the federal level, the Foreign Agents Registration Act was enacted in 1938 to counter Nazi propaganda. It requires individuals or entities acting "at the order, request, or under the direction or control" of a foreign principal to register with the Department of Justice and file detailed disclosures.
• Historically, FARA has been applied in relatively specific circumstances, primarily lobbying or political work directly tied to foreign governments.
• State-level analogues, however, are often drafted much more broadly. These proposals could sweep in a wide range of advocacy activities and impact organizations engaged in international solidarity movements.
• Terrorism: US law only allows foreign groups to be labeled as foreign terrorist organizations. And new policy directs federal law enforcement agencies to "investigate and disrupt networks, entities, and organizations" that have views in contravention to the president's.
• This type of legislation is now making its way to the states. In Florida, lawmakers are pushing several bills, such as HB 1471, SB 1632, and SB 1634, would dramatically expand the state's power to designate organizations as "domestic terrorist organizations."

o The bills broaden the definition of domestic terrorism, using sweeping language about activities intended to "influence the policy of a government" or "affect the conduct of government," terms that could be interpreted expansively.

o Once designated, an organization could have its funds frozen, be barred from receiving state contracts or funding, and expose its staff, donors, and supporters to criminal liability for providing "material support."

Hopeful Legislation:

· In Georgia, lawmakers are considering a bill that would expand student protest rights, excusing absences for classes missed due to protest attendance.

· In Missouri, HB 1871 extends the "no excuse" absentee voting period from two weeks to four.

Resources

Public Charities Can Lobby (Factsheet)

Being a Player: A Guide to IRS Lobbying Regulations for Advocacy Charities

Practical Guidance: What Nonprofits Need to Know about Lobbying in Your State

On this edition, we open up the docket and get an update on the variety of court cases that impact tax-exempt organizations and their ability to advocate on the issues they care about. And to help with that, we're joined once again by friend of the pod Emma Olson Sharkey from Elias Law Group to help demystify what's happening in the courts and how it might impact you and your work.

Attorneys for this episode

Brittany Hacker Leonard Tim Mooney Emma Olson Sharkey – Elias Law Group

Shownotes

501(c)(4) political activity

Freedom Path, Inc. v. IRS (D.D.C.)

Memorial Hermann Accountable Care Organization v. CIR (5th Cir)

Administrative law

Loper Bright Enterprises v. Raimondo (2024)

Johnson Amendment and 501(c)(3) partisan activity

National Religious Broadcasters v. Long (EDTX)

https://www.councilofnonprofits.org/pressreleases/federal-court-decide-legal-settlement-impacting-70-year-old-federal-law-protecting-0

Ballot measure process cases

Montana - Kendrick v. Knudsen - https://statecourtreport.org/our-work/analysis-opinion/proposed-ballot-measure-would-limit-montana-legislature-burdening-direct

Arkansas - https://arkansasadvocate.com/2025/11/19/judge-issues-injunction-against-arkansas-direct-democracy-laws/

Montana - Ellingson v. State: https://archive.legmt.gov/content/Committees/Interim/2023-2024/State-Administration-and-Veterans-Affairs/Meetings/Sept.5.24/Tab-11-Admin-Rule-Review-Litigation-Update/September-2024-Litigation-Update.pdf

Florida[GU2] - https://floridaphoenix.com/2026/02/20/federal-ruling-in-florida-ballot-initiative-restriction-challenge-could-have-national-implications/

Oklahoma - McVay et al. v. Cockroft and Drummond: https://www.lwv.org/legal-center/mcvay-v-cockroft

Missouri - Missouri et al v. Von Glahn et al: https://www.democracydocket.com/cases/missouri-congressional-redistricting-referendum-challenge/

One of the hottest topics in college athletics turns out to be about nonprofits. This episode unpacks how nonprofit colleges and third-party NIL collectives support individual student athletes, the governance and tax questions that follow, and what the recent NCAA settlement means for oversight and compliance. We also look ahead to emerging federal regulation and how nonprofits might engage in shaping what comes next.

Attorneys for this Episode

· Tim Mooney

· Victor Rivera

Why NIL Is a Nonprofit Issue

· Define NIL: athlete rights to monetize their brand (name, image, likeness).

· Distinguish third-party deals vs. institution-linked compensation

· Why nonprofits are in the mix: NIL collectives, booster organizations, independent sponsorscirculating capital in the ecosystem.

• College athletics live inside nonprofit institutions — universities and colleges are almost all 501(c)(3)s.
• Enter third-party NIL collectives — many of which are also nonprofits, often organized as 501(c)(3)s or seeking that status.
• When nonprofits move money, governance and tax law always follow — NIL is no exception.
• In October 2025, a settlement in House v. NCAA settlement centralized review mechanisms (the College Sports Commission – or CSC) now oversee deal approvals & compliance.
• Ongoing federal intervention: the proposed SCORE Act is NCAA-backed and would stop athletes from being considered employees and shield the NCAA from the kinds of class action lawsuits that got us to the current NIL landscape

How Nonprofits End Up Supporting Individual College Athletes

• Nonprofits can and do financially benefit specific individuals (scholarships, disaster relief, housing aid, fellowships).
• NIL collectives operate on a similar theory:
• Supporting athletes through appearances, community engagement, or promotional activity
• Often tied (explicitly or implicitly) to institutional athletic programs
• The tension:
• Supporting individuals is allowed
• But private benefit, inurement, and mission drift are still red lines
• Issue with compensating individuals using their "fair market value"
• Key question for nonprofits:
• Are we advancing a charitable purpose (legal) or just subsidizing compensation (questionable)?

Governance Questions Nonprofits Can't Ignore

Board-level responsibilities

• Mission alignment
• How does athlete support further the stated charitable purpose?
• Is this education, community engagement, economic equity or something else?
• "Amateur athletics" does a lot of heavy lifting here, but sometimes the collectives compensate the athletes for promoting charitable events/causes.
• Board oversight
• Who approves NIL strategy?
• How are conflicts of interest handled (especially boosters, alumni, donors)?
• Controls and accountability
• Criteria for selecting athletes
• Documentation of services provided
• Fair market value analysis
• Transparency
• What are donors told?
• What is disclosed publicly vs. internally?

Regulation on the Horizon After the NCAA Settlement

• The NCAA settlement signals:
• More centralized oversight
• More formal review of NIL arrangements
• Less tolerance for "wink-and-nod" structures
• Likely regulatory pressure points:
• Standardized deal review
• Clearer definitions of permissible activity
• Increased scrutiny of nonprofit status and operations

Should Nonprofits Weigh In on What Comes Next?

• The NCAA settlement last fall quieted things down by creating reporting structures, arguably with some teeth. But as things evolve, there's more space for nonprofits in particular to notice.
• Will the College Sports Commission (CSC) continue to have conference support so it can enforce the NIL rules? The agreement hasn't been fully adopted yet, but the CSC is already knocking down some NIL deals.
• Federal legislation (SCORE Act or SAFE Act)
• Recent controversies surrounding eligibility of former pro-basketball players (Amari Bailey, Charles Bediako) may force Congress to act
• NCAA-adjacent rulemaking
• State-level NIL frameworks particularly regarding their institutions
• Other structures could allow potential pathways for unionization for student-athletes
• 501(c)(5)s like AFL-CIO have come out against SCORE Act
• Previous attempts have failed by student-athletes in Northwestern and in other universities and the SCORE Act has a provision that bans college athletes from being considered employees

Resources

NIL Compliance Tightens: What the NCAA's New Rules Mean for Institutions and Sponsors – Steptoe and Johnson

College Sports Watchdog Will Enforce Rules Without Legal Backing – Front Office Sports

NIL regulations for college athletes face hurdles in Congress – Spectrum News

Letter Opposing Legislation That Would Be A Bad Deal for College Athletes – AFL-CIO

In this episode, we're answering questions from organizations about voter registration, which is, of course, timely given the upcoming midterm election season. Since these activities occur within an electoral framework, it's crucial to keep various legal aspects in mind while crafting and executing your voter registration campaigns. We'll discuss the key considerations related to nonprofit tax law, federal election law, and state law.

Attorneys for this episode

Sarah Efthymiou

Susan Finkle Sourlis

Monika Graham

Voter Registration

501(c)(3) nonprofits are effective voter registration advocates because they are trusted, nonpartisan organizations with deep ties to their communities, especially populations that are often underrepresented in the electoral process. By conducting voter registration drives, they remove practical barriers to voting, help people navigate confusing rules and deadlines, and expand equitable access to civic participation. This work strengthens democracy without endorsing candidates or parties and aligns with nonprofit missions by empowering communities to have a voice in the policies that affect their lives.

Why are c3s effective voter registration advocates?

• Deep trust and credibility.

• Direct access to underrepresented voters.

• Nonpartisan by law.

• Education + assistance.

• Long-term relationship building.

Why host voter registration programs?

• Registration is the biggest barrier to voting.

• They increase participation and equity.

• They normalize civic engagement.

• They strengthen democracy (without being partisan).

• They align with many nonprofit missions.

Federal Tax Law:

Federal tax law allows 501(c)(3) nonprofit organizations to engage in voter registration and education activities, as long as those efforts are conducted in a strictly nonpartisan manner. Understanding these rules is essential to ensure compliance while encouraging civic participation and protecting the organization's tax-exempt status.

I'm a 501(c)(3) public charity. How can I engage in VR without jeopardizing my status?

• 501(c)(3) public charities must conduct all voter registration activities in a strictly nonpartisan manner.

• Voter registration activities should be designed to encourage participation by all eligible individuals.

• Any targeting of voter registration efforts must be based on neutral, nonpartisan criteria.

• Organizations should exercise caution when connecting issue advocacy with voter registration activities.

I've heard that there are bad actors out there trying to "catch" c3's doing something wrong. What can we do to protect ourselves?

• Prepare for challenging questions by having a trusted partner ("buddy system") during voter engagement.

• Consider having a point person designated to handle tricky situations and/or suspicious questions.

• Invest in thorough training for all staff and volunteers involved in voter registration efforts.

Federal Election Law

Under federal election law and the rules governing 501(c)(3) organizations, charities and other tax-exempt nonprofits may engage in voter registration and other civic engagement activities as long as they remain strictly nonpartisan and do not support or oppose any candidate or political party. This limitation stems from the Johnson Amendment and IRS regulations, which prohibit political campaign intervention but explicitly allow educational and voter registration efforts that help people participate in the electoral process withneutrality.

What are some FEC rules we should be aware of to stay in compliance?

• Federal Election Commission (FEC) regulations strictly prohibit coordination of voter registration activities with candidates, political parties, or campaigns.

• Since the Citizens United decision, independent expenditures related to voter registration and partisan targeting are allowed for 501(c)(4) organizations but remain prohibited for 501(c)(3)s.

• Under no circumstances can 501(c)(3) organizations offer payments or anything of value—including food, gifts, or incentives like pizza—in exchange for voter registration.

State Regulations

State laws play an important role in shaping how 501(c)(3) organizations conduct voter registration activities. While federal law allows nonprofits to engage in nonpartisan voter registration, each state sets its own rules around registration procedures, deadlines, training requirements, and handling of voter information. Understanding and complying withapplicable state laws is essential for 501(c)(3)s to conduct voter registration safely, legally, and effectively.

Do we need to watch out for anything on the state level?

• Yes, potentially. Voter registration rules and requirements can vary widely by state, so it's essential to consult your state elections office for the most accurate and up-to-date guidance.

• States often have specific legal requirements for organizations conducting voter registration drives.

• Proper submission of completed voter registration forms is critical for validating registrations and maintaining compliance.

Are there any state developments to be aware of?

• There is a growing divide among states between those actively expanding voter access and those implementing increasingly restrictive voting laws.

• Several states are pursuing more restrictive policies that risk disenfranchising eligible voters by imposing stricter identification requirements or limiting mail-in voting access.

Funding Sources

Funding sources can affect how 501(c)(3) organizations conduct voter registration activities. While nonprofits may use private or foundation funds for nonpartisan voter registration, certain funding sources—such as government grants or restricted donations—may impose additional conditions or limitations. Understanding these funding rules helps ensure voter registration efforts remain compliant, nonpartisan, and consistent with both legal requirements and funder expectations.

What funds can 501(c)(3) organizations use to fund VR efforts?

• Both public and private foundations can provide vital funding to 501(c)(3) organizations conducting voter registration drives, supporting nonpartisan civic engagement and expanding democratic participation.

• Under IRS rules, private foundations cannot earmark grants exclusively for voter registration drives unless they comply with the detailed requirements of 26 CFR 4945(f):

• The organization sponsoring or conducting the voter registration drive (the sponsoring organization) must be a 501(c)(3) organization

• The registration activities of the sponsoring organization must be nonpartisan, conducted in five or more states, and occur over more than one election cycle

• A contribution for such activities may not be subject to conditions requiring use in a specific state (or political subdivision) or in a specific election cycle

• At least 85 percent of the sponsoring organization's income must be directly spent on activities relating to the purpose for which it was organized and operated, and

• At least 85 percent of the sponsoring organization's support, other than gross investment income, must be contributed by exempt organizations, the general public, or government units; no more than 25 percent of its support may come from any one exempt organization; and no more than 50 percent of its support may come from gross investment income (interest, dividends, or other investment-related income)

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

• Practical Guidance: Nonprofit Voter Assistance Series

• Nonprofits, Elections, & the Fine Art of Remaining Nonpartisan

• United States Election Assistance Commission

• Vote 411

On this episode, we're going back-to-basics to discuss the rules that apply when nonprofits engage in lobbying activities. With legislative sessions ramping-up in several states, it's important to take time to understand the lobbying limits and definitions that apply to your organization's advocacy. But, it's even more important to recognize that public charities can lobby and advocate for or against legislation at the local, state, and federal levels. So, rally your staff and volunteers, and speak up, because your nonprofit can play an important role in impacting public policy.

Attorneys for this Episode

• Brittany Leonard

• Tim Mooney

• Natalie Roetzel Ossenfort

The Importance of Lobbying

• Big business often pays for expensive lobbyists to represent their interests in front of legislators, but normal community members cannot foot that bill. Nonprofits who lobby can step up and fill the void.

• 501(c)(3) public charities can use their experience, funding, and passion for their mission to represent communities by advocating for or against changes to law.

• For example, Movement Advancement Project tracked the 2025 spring legislative session and found that every state except for Vermont had an anti-LGBTQ bill proposed but 88% of them did not become law. This was due in part to great nonprofits lobbying against these bills.

How Much Lobbying Can Public Charities Do?

• Internal Revenue Code provides two ways for public charities to measure their lobbying limits

• Default, Insubstantial Part Test: Public charities can lobby so long as lobbying is an "insubstantial part" of their overall activities (around 3-5% of total activities).

• Activities based test, not dollar-based

• Broad definitions of lobbying

• 501(h) Expenditure Test: Most public charities can opt in to using this test to measure their limits (as opposed to the insubstantial part test), and when they do, it provides a mathematical formula to calculate lobbying limits.

• Dollar-based test (unpaid, volunteer activities don't count against limits)

• Narrower definitions of what qualifies as lobbying

• Many organizations can put up to 20% of their budget toward lobbying using the 501(h) election, but the exact amount depends on the organization's annual exempt purpose expenditures.

What is Lobbying?

• The definition of lobbying depends on which of the two Internal Revenue Code tests your public charity uses to measure its limits

• Insubstantial Part Test: anything that advocates for or against legislation at any level of government is lobbying. For example:

• Advocating against a proposed ordinance in your city that would update the housing code in a way that would negatively impact the communities you serve

• Supporting a ballot measure that would codify reproductive rights in your state's constitution

• Talking to members of Congress to oppose the "Nonprofit Killer" bill

• Engaging in advocacy in an attempt to influence what gets included in your state's budget

• 501(h) Expenditure Test

• Direct Lobbying: Communication to a legislator (or their staff) that expresses a view on specific legislation. For example:

• Calling your Senator to encourage them to vote for an upcoming bill that will give every family a free puppy

• Emailing your State Rep's Chief of Staff to recommend an increase in funding for animal shelter improvements in the state's budget

• Grassroots Lobbying: Communicating to the general public your organization's view on specific legislation with a call to action (only four types). For example:

• Placing an ad in the newspaper that says "Call your Senator and express your support for legislation that would give every family a free puppy."

• Putting a web form on your public charity's website that encourages supporters to input their name and zip code to have a letter in support of a state-level bill automatically sent to their legislators

• What about a Threads post encouraging the public to vote in support of a local bond initiative or other ballot measure?

• Direct Lobbying. Why? The public is a legislator in the ballot measure process, because the public decides whether the measure passes (and becomes law) or fails (does not become law).

• Keep in mind that in addition to counting ballot measure advocacy against your lobbying limits, your ballot measure advocacy may also trigger state or local-level campaign finance reporting (since it happens in the election context).

• Examples of activities that do not count as lobbying include education about legislation without expressing a view, advocating for or against executive agency action, for or against executive orders, public education with no call to action under 501h, litigation, etc.

• Lobbying definitions can also vary according to state law.

• State laws generally don't limit how much lobbying a public charity can do, but they do require lobbyist registration and reporting when certain thresholds are met.

• State laws often define lobbying differently from the Internal Revenue Code and can include both legislative and executive branch advocacy activities.

Resources

• Being a Player: A Guide to the IRS Lobbying Regulations for Advocacy Charities

• Public Charities Can Lobby: Factsheet

• State Law Resources: Nonprofit Lobbying Practical Guidance

• 501(h) Lobbying Limit Calculator

Happy 2026! As policy shifts and new advocacy opportunities emerge, the Bolder Advocacy team is here to guide nonprofits so they can continue to advocate boldly while remaining compliant and effective. We're kicking off the year with our Top 10 nonprofit New Year's resolutions to help your organization thrive.

Attorneys for This Episode

• Monika Graham

• Victor Rivera Labiosa

• Natalie Roetzel Ossenfort

Top 10 2026 Resolutions:

1. Deepen Mission Alignment

Clarity fuels momentum. Revisit your mission statement to ensure that every project, partnership, and expenditure aligns directly with your core purpose.

• The National Council of Nonprofits hosts a hub on its website that provides nonprofits with tools, research, and resources needed to operate a nonprofit more effectively, efficiently, and ethically.

2. Conduct an Advocacy Check-Up

Identify opportunities to enhance your organization's advocacy activities, and raise potential issues about compliance with the tax, lobby, election, and other laws that govern your work.

• The Advocacy Check-Up is a self-assessment tool for 501(c)(3) public charities to review compliance with federal and state advocacy rules and identify opportunities to strengthen advocacy capacity.

3. Invest in Staff Well-Being

A supported team propels progress through good times and through bad. Prioritize mental health, provide professional development opportunities, and maintain a culture of appreciation. Encourage continuous learning to ensure that your team is constantly growing and expanding its expertise on the issues facing your communities and potential policy solutions.

• For tips on how to better invest in staff well-being click here.

4. Strengthen Diversity, Equity, and Inclusion (DEI)

Commit to measurable actions to ensure your staff, board, and programs reflect and serve your community's diversity authentically.

• Resources for strengthening DEI practices are available through the Philanthropic Initiative for Racial Justice and the Council of Nonprofits.

5. Improve Financial Transparency

Publish clear annual reports, be open about how resources are used, and communicate outcomes to maintain trust.

• For tips on how to demonstrate clear financial accountability take a look at the NCN's post on financial transparency and public disclosure requirements.

6. Embrace Digital Transformation

Technology can amplify reach and efficiency. Adopt digital mechanisms for donor management, storytelling, virtual events, and operations.

• Refer to BA's Influencing Public Policy in the Digital Age for best practices on engaging in online advocacy.

7. Build Sustainable Fundraising Strategies

Diversify revenue streams. Combine grants, recurring donations, sponsorships, private donors, and other opportunities for long-term financial health.

• If you are a foundation interested in expanding your advocacy funding, explore our Focus on Foundations hub.

8. Measure What Matters

Data-driven decisions help refine focus and prove impact. Develop and track meaningful metrics that demonstrate actual outcomes.

• Check out our Advocacy Evaluation Resources hub for sample benchmarks and guides to help your nonprofit assess its strengths, identify areas for growth, and become more effective in its advocacy.

9. Strengthen Community Partnerships

Collaborate rather than compete. Coalitions, community, local governments, and businesses can all amplify their missions through shared resources and reach.

• Find other like-minded organizations and work in coalition to register voters ahead of the 2026 midterm elections and to advance legislative and other policy priorities.

• Our Coalition Checklist provides information about common joint advocacy activities, resource sharing, and how to safely partner with other tax-exempt organizations.

10. Prepare for Midterm Elections

Remember: 501(c)(3) public charities may engage in nonpartisan voter education, issue advocacy, and civic engagement, so plan your election-season activities early to ensure the organization is impactful while remaining compliant.

• Browse Rules of the Game: A Guide to Election Related Activities for 501(c)(3) Organizations for a deeper dive on best practices for engaging in nonpartisal election season advocacy.