What Nonprofits Need to Know About Nominations

After the Supreme Court wrapped up its latest term, we thought it would be a good idea to revisit the unique opportunities 501(c)(3) public charities have to advocate in favor of or against specific nominations made by the Executive Branch that require confirmation from a legislative body. On this episode, we explore the nomination process for key positions and give you some best practices on how to ensure your organization can effectively (and legally) advocate for specific nominees.

Shownotes:

·      Nomination advocacy often qualifies as lobbying (Internal Revenue Code).

o   501(c)(3) public charities are allowed to weigh in on executive branch nominations that are confirmed by a legislative body.

o   According to the IRS, attempts to influence Senate confirmation of a federal judicial appointment are generally not considered campaign intervention (partisan activity), which is specifically forbidden by section 501(c)(3).  However, because attempts to influence Senate confirmation are considered lobbying, they are subject to Internal Revenue Code lobbying limits.

§  Section 501(c)(3) public charities may engage in lobbying in furtherance of their exempt purposes, but they are limited in how much lobbying they can do.

§  Default rule: Lobbying may not be a substantial part of 501(c)(3) public charity’s activities (3-5%).

§  Alternate rule: Public charities can make the 501(h) election to take advantage of potentially more generous, dollar-based lobbying limits.

o   When lobbying, remember to use unrestricted dollars.

·      Question: Can we establish a relationship with or educate nominees ahead of a confirmation hearing?

o   Interacting with nominees is generally allowed. They are not treated like candidates since they are not running for office, but instead have been nominated to fill a specific role.

·      Question: What about identifying potential candidates to fill up an upcoming vacancy?

o   This is also OK. Organizations may choose to vet potential nominees in advance of a nomination being made to inform the executive branch about their suitability for the role. [GU1] 

o   That said, if you are asking an executive branch official to intervene in a legislative process (e.g. to make the nomination), that initial activity will likely count as lobbying as well[GU2]  and need to be tracked against your public charity’s lobbying limits.

·      Question: Does this only apply to judicial nominations?

o   No. The IRS allows 501(c)(3)s to lobby for or against any nominations to positions that require the “advice and consent” of a legislative body.

§  Article II, Section 2 of the US Constitution allows for the President to appoint officers to certain positions. These nominees are confirmed if they have the advice and consent of the Senate. This process usually requires legislative hearings by specific committees and ends with a vote by the Senate to confirm the nomination.

§  The nomination itself is treated as a piece of legislation, which is why lobbying rules kick-in when engaging in nomination advocacy.

·      Question: What about nominations proposed by our Governor for specific state agencies?

o   Is a legislative vote required in order for the individual to take office? If so, it is likely lobbying to weigh in and should count against lobbying limits.

o   Remember: this type of activity could also trigger state or local-level lobbyist registration and reporting requirements. Check your jurisdiction’s lobbying definitions and registration requirements to learn more.

·      Post-Election

o   501(c)(3)s have a unique, post-election opportunity to get ahead of the game and work with newly elected officials, who will be in charge of nominating specific individuals as heads of agencies or departments.

o   This type of transition advocacy is well within the realm of activities nonprofits can engage in, but check out our “transition advocacy” factsheet for additional details.

 

Resources

·      Confirmation of Federal Judges and Executive Branch Nominees (Factsheet)

·      IRS guidance on judicial nominations for 501(c)(3)s (Website)

·      Transition Advocacy (Factsheet)

·      Foundation Support for Public Charities that Influence Judicial and Executive Branch Confirmation Votes(Factsheet)

·      Public Charities Can Lobby (Factsheet)