Federal income tax laws and regulations restrict lobbying and, in some cases, prohibit certain exempt organizations from conducting political activities. Failure to comply with these rules can result in imposition of excise tax or loss of exemption. However, with the proper legal advice, charities can adopt a lobbying strategy that effectively supports their charitable mission.
We advise our charitable clients regarding permissible ways they can advocate for social change. We counsel clients regarding Federal limits on lobbying and the Section 501(h) lobbying expenditure election, as well as state lobbying rules and registration and reporting requirements.
We also advise nonprofit organizations classified under other sections of the Internal Revenue Code, such as 501(c)(4) social welfare organizations and 501(c)(6) trade associations, that are permitted to conduct lobbying and political activities, regarding permitted methods and amounts of these activities.