Rules of the Game: The Bolder Advocacy Podcast

It's been a long year, and while progressive movements have faced real setbacks, that's not the whole story. Across the country, nonprofits and the communities they serve pushed for justice and secured meaningful victories worth lifting up. On this episode, we celebrate several advocacy wins from 2025.

Attorneys for this episode:

Maggie Ellinger-Locke, she/her

Susan Finkle Sourlis, she/her

Melissa Marichal Zayas, she/her

Link: https://traffic.libsyn.com/rulesofthegame/ROTG147-celebrating-advocacy-wins.mp3

Show Notes:

· Economic Justice

o In May, Washington became the third state to adopt a statewide rent stabilization law. Washington Low Income Housing Alliance and its network mobilized thousands of people to support passage of this legislation.

o Colorado enacted new renter protections for victims-survivors of gender-based violence nonprofits. The Women's Foundation of Colorado supported this legislation through direct lobbying, grassroots lobbying, and public education.

o Colorado also saw voters pass Proposition MM increasing taxes on the state's highest earners to fully fund free breakfast and lunch for all K-12 public school students.

o In Texas, Every Texan, a 501(c)(3) public charity, helped defeat the adoption of new Medicaid enrollment barriers. Every Texan also helped pass a law requiring hospitals to provide clear information to parents.

· Gender and Reproductive Justice

o Ipas US and its local partners, successfully advocated for the city and town councils of Philadelphia, PA; Baltimore, MD; Atlanta, GA; and Carrboro, NC to adopt resolutions or proclamations that recognize reproductive rights as human rights, acknowledge the obligation of the U.S. to protect human rights under international law, and declare December 10th as Human Rights Day. They also championed similar executive proclamations issued by the mayors of Mount Rainer, MD, and Austin, TX. These victories reflect a growing movement to recognize abortion as a human right at the local, state, and federal level.

· In Montana, transgender youth and medical providers, represented by counsel including the ACLU of Montana and Lambda Legal, won a lawsuit challenging a state law banning evidence-based care for children experiencing gender dysphoria. The Montana Supreme Court ruled the law unconstitutional, ensuring Montana's transgender youth continue to access to medical treatment, despite the U.S. Supreme Court's recent ruling in U.S. v. Skrmetti.

· Democracy and Voting Rights

o Nonprofit Vote and its partners helped 300,000 voters register or update their registration on National Voter Registration Day 2025. In New York, HeadCount's youth-led community engagement helped the state register nearly twice as many voters as were registered during 2024's National Voter Registration Day.

o Nonpartisan voter registration drives like the one led by Nonprofit Vote can help increase voter turnout, and it did just that in several November elections, including races in New York, New Jersey, and Pennsylvania.

o In Maine voters rejected Question One, a ballot initiative that would have imposed strict voter ID requirements and gutted the state's popular vote-by-mail system, keeping intact one of the most inclusive voting infrastructures in the country.

· Advocacy Reminders

o Legislative resolutions and proclamations voted on by lawmaking bodies are considered legislation by the IRS, while executive proclamations and orders are issued by mayors, governors, or the President are not considered legislation by the IRS. Seeking the passage of executive proclamations and orders does not count as lobbying under federal tax law.

o When seeking to influence legislation, track your lobbying based on the lobbying test your organization follows—either the insubstantial part test or the 501(h) expenditure test—stay within your organization's lobbying limits. Also be sure to review the lobbying disclosure rules for the jurisdiction you're lobbying in to confirm any additional registration and reporting requirements.

o 501(c)(3)s can support democracy by engaging in nonpartisan voter registration drives, get-out-the-vote campaigns, and other educational activities that encourage voter participation. Always check your state's voter assistance rules before registering voters or assisting voters in other ways.

o 501(c)(3) private foundations can support nonpartisan voter engagement, but they must follow special rules when funding voter registration.

o Ballot-measure campaigns offer communities opportunities to bypass legislatures and taking their issues directly to voters. The IRS classifies ballot-measure advocacy as direct lobbying under the 501(h) expenditure test. Remember to review the campaign finance rules for the jurisdiction where the measure will be on the ballot because they may require registration or reporting.

· Conclusion

o It's not just about whether we win, but how we win. By taking the time to stop and reflect on our advocacy campaigns, we ensure that we continue to stay grounded and prepared for the fight ahead. So raise a glass and cheers, there are so many more victories to look forward to! 🥂

Resources:

Public Charities Can Lobby

What Nonprofits Need to Know About Lobbying in Your State

Election Checklist for 501(c)(3) Public Charities

Nonprofit Voter Assistance Series

Voter Registration Rules for Private Foundations

Election Year Activities for 501(c)(4) Social Welfare Organizations

Ballot Measure Toolkit

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

On this episode, we gather around the virtual table and share three success stories for nonprofit advocacy that may help to put a smile on your face and give you something positive to reflect on, in a year that could use a lot more of that.

Attorneys for this episode

· Tim Mooney

· Quyen Tu

· Sarah Efthymiou

Shownotes

UNIDOS MN Action and the power of advocacy

· Driver's licenses for undocumented people revoked in MN 2003

· The 2022 change in political landscape that set the stage

· The work led by UNIODS MN Action to pass HF4

· The outcome - tens of thousands of people can now drive legally—no more choosing between getting to work and risking their family's stability

· Emilia González Avalos, one of the key leaders of UNIDOS MN, handed us an officially signed copy of the bill

· She said they wanted me to have it because the legal strategy support from Bolder Advocacy on (c)(4)s gave information and confidence for UNIDOS MN Action up and running and that mattered in getting this win

Heinz using PRG hub to give out specific project grants

Summer of 2023, launched with support from Robert Wood Johnson F

• Our explainer videos provide a clear and concise overview of how the PGR works and how private foundations (and their grantees) can take advantage of it.
• Our factsheets provide more in-depth information on the PGR and explain how to use our new PGR budget templates.
• Our budget templates help foundations and grantees ensure that when a grant applicant submits a project budget, it meets the requirements of the PGR.

Earlier in the year, a foundation staff was on a conference panel and blatantly said foundations can't lobby. A similar occurrence happen when our colleague attended Foundations, both private and public, have us train their staff on understanding the rules and addressing their specific concerns

Response from Legal Community

· NLDN: collaboration between AFJ & We the Action – to empower NPs to withstand challenges, e.g., audits and attacks on TE status; legal clinics

· State AGs: joined forces w/NPs (NCNP, etc.) to challenge funding freezes

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

As we head into the final stretch of 2025, we're back on the mic to tackle some of the most common questions we hear about accountability advocacy. Whether your organization is calling out broken promises, uplifting community voices, or demanding action from those in power, this episode is all about giving nonprofit organizations the clarity, confidence, and tools to hold public officials accountable boldly and legally.

Attorneys for this episode

Natalie Ossenfort

Monika Graham

Victor Rivera

Shownotes

1. Can 501(c)(3) organizations participate in protests or rallies that are critical of the current administration without jeopardizing their tax-exempt status?

Yes, 501(c)(3) organizations can legally participate in protests or rallies that are critical of the current administration or its recent decisions as long as the advocacy connects to the organization's charitable purpose and the activities remain nonpartisan.

What's Allowed:

• Protesting specific policies, laws, or actions taken by elected officials or government agencies

• Organizing or participating in rallies that align with the organization's mission (e.g. immigrant rights, environmental justice, LGBTQ+ protections)

• Naming elected officials and holding them accountable for their actions taken in their official capacity

• Consulting with counsel about applicable laws and best practices

What's Not Allowed:

• Endorsing or opposing a candidate running for office, including incumbents up for reelection, even implicitly like connecting a stance on a specific issue and a political party or candidate (e.g. "Vote Pro-Choice")

• Participating in protests that are clearly organized by or for/in coordination with candidate campaigns or parties

• Timing a protest to coincide with an election with the intent to influence the outcome

• Violating any federal, state, or local laws, engaging in criminal activity such as unlawful assembly, disorderly conduct, obstruction of law enforcement, or inciting or aiding illegal acts

1. As the new Supreme Court term begins, are 501(c)(3)s allowed to educate the public about pending cases? What about organizing social media campaigns in response to recent decisions?

Yes, 501(c)(3) organizations are absolutely allowed to educate the public about Supreme Court cases, including pending decisions, and to organize social media campaigns in response to recent rulings.

But it may be wise to exercise best practices to ensure the work remains in compliance with IRS rules and regulations.

What's Allowed:

• Explaining the case's impact on the organization's mission and/or the community it serves

• Highlighting real stories, lived experiences, and systemic impacts to make the stakes unmistakably clear

• Publishing statements, issuing press releases, writing blog posts, speaking to the media, and launching social media campaigns to share the organization's position on an issue

• Drafting or joining others in filing an amicus brief

What's Not Allowed:

• Using language that directly or indirectly supports or opposes a candidate or group of candidates.

• Statements suggesting how to vote in an upcoming election in response to a Supreme Court (or other court's) decision.

1. To what extent can 501(c)(3) organizations engage in accountability advocacy? Are there specific guidelines when it comes to holding power accountable?

Yes, 501(c)(3) organizations can engage in accountability advocacy so long as the work remains nonpartisan and mission aligned. Holding public officials accountable for the impact of their actions is not political; it's principled. And it is not only legal, but a vital expression of a nonprofit's responsibility to the communities it serves.

What's Allowed:

• Criticizing or praising policies, actions, and decisions made by public officials

• Demanding transparency, equity, and accountability from Congress and administrative agencies

• Using creative, nonpartisan ways to engage in advocacy through art and collaboration (e.g. Create a "Wall of Faces" featuring images and stories of people who have been personally impacted by recent policy changes)

What's Not Allowed:

• Using language that suggests an elected official is not well suited for public office

• Linking policy criticisms directly to upcoming elections or campaigns

• Explicit or subtle suggestions about how individuals should vote in response to an elected official's actions

1. If you had to make one recommendation for groups wanting to engage in accountability advocacy, what would it be?

• Engage responsibly during election season: As you may know, Nov. 4 is election day in many places so we just wanted to give a friendly reminder that while 501(c)(3) organizations cannot support or oppose candidates, they can participate in nonpartisan activities—such as voter education, Get Out the Vote (GOTV) efforts, and issue awareness campaigns—focused on empowering voters and strengthening civic participation. Remember to only share materials or resources that are 501c3-safe and to train your staff and volunteers before engaging in an election-related activity.

• Stay mission-aligned and consistent: Focus your advocacy on issues that directly reflect your organization's mission, and comment on them consistently (not just when an election is near)

• Get loud and amplify your message: Use social media strategically to highlight your stance, mobilize supporters, and hold decision-makers accountable. Remember, it is an inexpensive yet powerful way to expand your reach and impact.

Resources

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

Influencing Public Policy in the Digital Age

Accountability Advocacy for 501(c)(3)s

ROTG #142: SCOTUS Term Preview and Advocacy for 501(c)(3)s

Haunted by the Chaos? Perfect. Let's Talk Accountability Advocacy

It's fall, it's October and the US Supreme Court is back in session. On today's episode, we have a special guest from the AFJ Justice team. We are joined by our colleague Jamal Lockings. With Jamall we will cover the big cases to be heard by the court. Then we will talk about how nonprofits can get involved with supreme court advocacy, nominees, and more while staying nonpartisan and being mindful of lobbying limits.

Attorneys for this Episode

Brittany Hacker

Susan Finkle Sourlis

Jamaal Lockings

Intro to Justice Program

• Our justice team works on both federal and state judicial appointments and elections and runs numerous invaluable resources including our judicial vacancy tracker and helps keep us and the public informed about nominees. This includes the decisions they make after they've been confirmed, and how cases in federal courts – especially the supreme court – are impacting our civil rights and democracy.

• Today, we are thrilled to be joined on the pod by our friend and colleague Jamaal Lockings. Jamaal is a fellow attorney who serves as a Dorot Fellow on the Federal Courts team.

• Today we want to talk about the upcoming cases in this supreme court term, what we should be keeping an eye on, the potential impacts for our c3 partners, and what nonprofits can do during this term and future terms to advocate.

Cases to watch out for this term

• Voting Rights and Money In Politics

• Louisiana v. Callais

• Issue: Whether a states efforts to comply with the VRA is, in itself, a form of racial discrimination

• (1) Rehearing from last term (2) The Court is playing politics (3) the VRA is on the chopping block

• Consequences: A final blow to the VRA, and increased difficulty for minority voters to participate in free and fair elections

• National Republican Senatorial Committee v. FEC

• Issue: Whether to maintain the federal limits on political party coordination w/ candidates in campaign advertising.

• (1) Could render campaign contribution limits meaningless, increasing the already outsized influence of money in politics (2) These cases on elections and voting rights can't be observed in a vacuum

• LGBTQ+

• Chiles v. Salazar

• Issue: Whether Colorado's ban on "conversion therapy" for minors violates First Amendment protections of free speech and religious exercise

• (1) Religious litigants have been notoriously successful in this court (2) free speech and religious exercise have been used not to ensure equity or equality but to prop up Christian nationalist ideology.

• West Virginia v. B.P.J.

• Issue: Title IX and barring Trans athletes

• (1) This court continues to wade into culture wars (2) It's ruling in Skrmetti and Justice Barrett's assertion that Trans isn't a protected states (3) Embolden lawmakers to continue to write oppressive laws against trans individuals

• Executive Power & Civil Liberties

• Trump v. Slaughter

• Issue: whether statutory removal protections for members of the FTC – and agencies like it – "violate" the separation of powers.

• (1) The Court's emergency orders this summer (2) growing belief in the unitary executive theory (3) Likely to overrule Humphrey's executor

• Consequences: Collapse of independent agencies and with it, governing stability.

What c3s can do:

• Supreme court advocacy is nonpartisan—you are free to stand for or against cases before any court or get involved in the cases.

• Litigation at the supreme court: c3s are often the best voice and represent groups who otherwise would not be heard or could not bring such large scale cases

• Amicus briefs

• Educating the public about cases and impacts of opinions

As you know c3 public charities may engage in lobbying and there are ways through lobbying that can affect the courts at the federal or maybe the state level

• Nominee advocacy—Advocate for or against nominees to supreme court (lobbying)

• Remember the lower district courts and circuit courts as well

• Remember the lobbying rules if you are a c3: must track and report your lobbying the IRS and stay within your lobbying limits. Great place for c4s to get involved because they can lobbying in an unlimited amount.

• Ethics advocacy—ask congress for more oversight or ethics rules (Lobbying if it will require a legislative vote).

Resources

• Alliance for Justice, Being a Player

• Alliance for Justice, Confirmation of Supreme Court Justices

• Alliance for Justice, Judicial Nominee Tracker

• Alliance for Justice, Supreme Court Reform

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)

Ballot measures give voters a chance to participate in direct democracy while providing nonprofit organizations with a powerful platform to educate the public about issues they champion. In this episode, we discuss California's pending redistricting ballot measure and other developments in direct democracy with returning guest Emma Olson Sharkey.

• Tim Mooney

• Susan Finkel Sourlis

• Emma Olson Sharkey, Elias Law Group

· Ballot measures give voters direct power to shape laws and policies, bypassing legislatures.

· For nonprofits, they're a powerful platform to educate the public and advance mission-driven issues.

· Emma Olson Sharkey—partner at Elias Law Group and one of the nation's leading ballot measure experts—returns to share insights (last heard in ROTG 96).

· Background: California has an independent redistricting commission that drew maps in 2021 for the 2022 elections.

· New twist: In response to Texas' recent partisan maps, Governor Newsom and allies pushed for mid-decade redistricting.

· The ballot measure: Prop 50, passed by the legislature and signed by the Governor, will go to voters in a special election on November 4, 2025.

· Ballot measures have long been used to reform redistricting across the U.S.

· Examples: - Successful: Colorado (2018), Michigan (2018), Missouri (2020), Ohio (2018). - Unsuccessful: Ohio's most recent attempt.

· Mid-cycle redistricting isn't new: Texas pioneered it in 2003 under Tom DeLay, and the playbook has returned in 2025.

· 501(c)(3) Public Charities: May engage in ballot measure advocacy—it counts as lobbying. Key distinction: 'Vote yes/no on Prop X' = permissible lobbying; 'Vote for Candidate Y' = prohibited partisan activity.

· Because Prop 50 is rooted in partisan battles, public charities must tread carefully and seek legal advice before weighing in.

· Generally safe activity: nonpartisan voter engagement (e.g., get-out-the-vote drives, voter registration), but seek counsel especially around Prop 50.

· 501(c)(4)s and Labor Organizations: Have far greater leeway—no cap on lobbying. But California's strict regulatory environment requires attention to registration and reporting obligations.

· Since 2016, conservative legislatures have increasingly tried to restrict citizen-led ballot measures.

· States in the spotlight: North Dakota, South Dakota, Wyoming, Missouri, Florida, Oklahoma, Arkansas.

· Many proposals fail, but recent years have seen more succeed, especially in Florida and Arkansas.

· Missouri is considering both mid-cycle redistricting and ballot measure restrictions in the same session.

· South Dakota victory: A federal court struck down H.B. 1184's nine-month filing deadline for ballot measures as unconstitutional, reaffirming citizens' First Amendment rights.

· Practical impact: Keeps the window open for grassroots groups to gather signatures and qualify measures.

Seize the Initiative: A Legal Guide on Ballot Measures for Nonprofits and Foundations — https://afj.org/wp-content/uploads/2020/04/Seize-the-Initiative-2020-2.pdf

Being a Player: A Guide to the IRS Lobbying Regulations for Advocacy Charities — https://afj.org/resource/being-a-player-a-guide-to-the-irs-lobbying-regulations-for-advocacy-charities/

The Rules of the Game: A Guide to Election-Related Activities for Nonprofit Organizations — https://afj.org/resource/the-rules-of-the-game-a-guide-to-election-related-activities-for-nonprofit-organizations/

In today's episode, we're focusing on the topic of state advocacy, specifically exploring the vital role that nonprofits play in shaping policy and driving change at the state level, and how that role is increasingly coming under attack. We will discuss some of the landscape nonprofits are currently facing at the state level and provide actionable tips for organizations looking to amplify their impact. And we'll be sharing information about exciting new state resources that are in progress at Bolder Advocacy!

Attorneys for this Episode

Brittany Hacker

Maggie Ellinger-Locke

Sarah Efthymiou

The Importance of State-Level Advocacy:

· State policies have as much, if not more, impact on local communities, than federal policies

· State-level advocacy can lead to significant changes in policies around funding, regulations, and services

· What are some benefits of state-level advocacy by and for nonprofits?

o Can help strengthen community ties and build relationships with policymakers

o Can enhance the visibility and credibility of the organization

o Can help mobilize supporters and volunteers around key issues

o These policy advocacy opportunities really allow nonprofit organizations to engage in some of the nuts and bolts of movement building.

Protecting Against State Legislative Attacks on Nonprofits:

· "Laboratories of democracy," a1932 opinion by Justice Louis Brandeis.

· That vision still holds, states can test bold reforms especially when federal progress stalls.

· But some state legislatures are taking aim at civil society.

· Today we're spotlighting four troubling trends: donor disclosure laws, "baby FARA" bills, charitable fundraising restrictions, and anti-DEI legislation.

o Donor disclosure laws are framed as transparency measures—and in some contexts, transparency matters. We support campaign finance disclosure, where voters have a right to know who's funding elections. But these bills chill speech and participation. Donor privacy protects safety, not secrecy.

o Baby FARA bills have been introduced in 19 states and enacted in a few. These laws cast suspicion on global philanthropy and research partnerships, even when no government is involved. And it's worth noting that the original FARA was passed in the 1930s to curb Nazi propaganda. Today, its logic is being flipped and weaponized against anti-fascists and transnational justice efforts.

o Charitable fundraising restrictions limit who nonprofits can fundraise from. These are written so broadly they sweep in international aid, scientific collaboration, and humanitarian partnerships. These restrictions are framed as national security—but they risk cutting off essential support for nonprofits doing global work.

o Anti-DEI laws have been introduced or passed in more than 30 states, targeting diversity, equity, and inclusion efforts, especially in public universities and government agencies. These billsreflects a broader effort to delegitimize inclusive values and restrict the space for nonprofits to advance justice.

· Federal politics dominate the headlines. But the real action is in the states. These policies shape what's possible for your work every day.

Offensive State Advocacy

· Funding at the State and Local level: Advocate for nonprofit funding from state and local budgets. Fund nonprofits and research that may have been cut at the federal level

o Advocating for this funding in budgets will count as lobbying

· Lobby for protections greater than the federal level: lobby for legislation to protect interests that the federal government has attempted to limit through executive order or supreme court cases

o Trans health care access for youth—SCOTUS allowed Tennessee to ban trans youth health care, but the Court did not ban trans youth healthcare nationally—states with progressive legislatures can enact protections for trans healthcare and can make themselves shield states to ensure that their providers are protected and can widely provide care.

§ We have seen similar action happen succssfully with regard to abortion and same sex marriage

o Environmental protections—CA has requirements that exceed those that the federal government previously had

o Consider ballot measures! State by state measures have been effective in the abortion context and bring the decision directly to voters.

Advocacy Rules for 501(c)(3) Organizations:

Under the federal IRS tax rules, 501(c)(3) public charities can engage in policy level at the state level, including lobbying. However, it is important to be aware potential limitations.

· 501(c)(3)s cannot engage in partisan political activities.

· Public charities can lobby but are subject to limitations.

Unlike the federal system, state lobbying laws vary widely. Knowing where and when you need to register and report is essential to doing this work effectively, and legally.

There are three core questions to ask:

1. Do I need to register?

2. When is registration required?

3. What does registration and reporting actually involve?

· State lobbying definitions vary widely. Some states are strict—you might need to register just for liking a policymaker's tweet. Others are more flexible and only require registration after you cross a threshold, like a certain number of contacts or hours worked.

· If registration is required, what does that process look like? Some states charge a fee, others require ethics training, and most require paperwork. A few even ask for a headshot.

· Some states require monthly or quarterly reports. Others, like Illinois, require reports every two weeks. Failing to file on time can lead to late fees, public scrutiny, or even criminal penalties in cases of willful noncompliance.

· State rules differ dramatically, and you need to know the rules where you work. Luckily, Bolder Advocacy has your back. Our 50-state guide series—including DC and Puerto Rico—breaks it all down so you don't have to guess.

· At Bolder Advocacy, we're here to help you lean into your power while staying in compliance. But too often, we see groups pull back out of fear—not because the law actually prevents them from acting, but because they worry about what might happen.

Conclusion

In all of this, we should remember that nonprofits are deeply rooted in community. We understand the issues. We see the harm. That gives us the insight and credibility to push for lasting change especially at our state and local levels

When you organize a lobby day and bring constituents face to face with lawmakers, or when you send an email urging your network to act on a bill, you're shaping policy. You're lifting voices. You're fueling movements. And even if a bill doesn't pass this year, your advocacy still matters. You're building relationships, expanding your network, and making your cause more visible. Because while protests and litigation have their place, it's this steady, strategic policy work that builds lasting power. Even in times when federal progress is limited. And that's what advocacy is all about!

Resources

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

Practical Guidance Series: Lobbying

Practical Guidance Series: Nonprofit Voter Assistance

On this episode, we're diving into a topic that's especially important in today's high-stakes advocacy environment — threats to your tax-exempt status. Yes, we're talking about that precious 501(c)(3) status, the one that lets your organization do good in the world without paying taxes, and with the constant challenge of figuring out how to advocate, influence policy, and make change without accidentally stepping into 'oops, we might lose our status' territory.

Attorneys for this Episode

Monika Graham

Victor Rivera

Special guests, interns Ariana and Cecilia

Shownotes

• Lobbying 101 for 501(c)(3) Public Charities
• Direct vs. grassroots lobbying
• The 501(h) election and why it matters
• Tracking expenditures and staying under federal limits
• Election Season Advocacy Without the Partisanship Pitfalls
• What nonpartisan really means (and the surprisingly small actions that can cross the line)
• Safe activities: voter education, GOTV efforts, and issue-focused advocacy
• Timing, audience, content, and motive — the four factors the IRS cares about
• Common Allegations and How to Defend Against Them
• Exceeding lobbying limits
• Misuse of restricted or federal funds
• Partisanship accusations in disguise
• Best Practices to Protect Your Organization
• Documentation systems that actually work (and don't make your staff revolt)
• Internal policies and staff training that stick
• Tools and software for tracking lobbying (and why cross-departmental collaboration matters)
• Real-World Case Examples
• Increased government scrutiny and oversight
• How nonprofits are adapting their compliance tracking in 2025

Resources

• Being a Player
• Rules of the Game
• Influencing Policy in the Digital Age
• Preparing for Politically Motivated Attacks