Many people who run not-for-profits think that not-for-profits are prohibited from lobbying. This is not an accurate statement. Not-for-profits are prohibited from engaging in political campaign activity and political activity will be taxed, but lobbying, within the limits provided by the IRS, is appropriate and can be necessary to carry out the nonprofit’s mission.
It is important to distinguish between “political campaign activity,” “political activity” and “lobbying.” Political campaign activity deals with an individual who is a candidate for public office. Not-for-profits are prohibited in participating in this activity.
Political activity, however, refers to influencing or attempting to influence the selection, nomination, election or appointment of any individual to any federal, state or local public office other than in the context of legislative confirmation. If a not-for-profit chooses to undertake this type of action, the not-for-profit may be subject to a special tax.
Finally, lobbying refers to when a bill or draft bill is proposed in any legislative body (i.e. city council or state legislature) or any action with respect to direct actions of these bodies such as proposed constitutional amendments or referenda. Not-for-profits CAN engage in lobbying as long as no “substantial part” of its activities consists of attempts to influence legislation. If your organization’s mission is to help kids get a better education and you work with schools and teacher’s to provide after school activities to further this mission and you see a bill being introduced to lengthen the school day and want to support it, by all means, your organization should support it. Not-for-profits should feel free to support causes that further its mission and long term goals through lobbying as long as that is not the main part of the organization’s role.