Rules of the Game: The Bolder Advocacy Podcast

Nonprofits are important advocates on issues critical to every community, but sometimes the rules and regulations of advocacy can be barriers to entry. In Rules of the Game, Bolder Advocacy attorneys at Alliance for Justice use real examples to demystify these laws to help 501(c)(3) and 501(c)(4) nonprofits be bolder advocates, whether holding elected officials accountable, educating candidates, engaging voters, or lobbying for policy change.

Can We Rent (Or Share) That? 05/01/2024

Can We Rent (Or Share) That? On this episode, we will discuss how nonprofits can respond when they are asked to share their resources with others. Whether it’s data, a mailing list, office space, or something else of value, your nonprofit needs to know what to do when asked to share its assets with other people and groups. And guess what! Your organization’s tax status will come into play. If you’re a 501(c)(3), you need to be particularly careful, especially when interacting with non-(c)(3)s. We’ll dive in deep and answer the question “Can We Rent (or Share) That?” in the minutes to come. Our Attorneys for This Episode: Monika Graham Natalie Ossenfort Victor Rivera General Principles when sharing resources and working with other organizations: · Principle #1: Moving resources from a 501(c)(4) to a 501(c)(3) is simpler from a legal standpoint than the reverse (uphill / downhill principle). · Principle #2: Your tax-exempt status follows you into your transactions with others. · Principle #3: Documentation is important. · Principle #4: Stay in your lane. What does this have to do with renting and exchanging resources? · 501(c)(3)s are prohibited from supporting or opposing candidates, including making contributions to candidates and political organizations. · 501(c)(3)s should not provide resources to a 527 without charge. Instead, they should rent or sell these types of assets for fair market value and make them equally available to any other political entities that request them. o Best practice is to use a list broker. · When supporting the work of (c)(4)s, which can engage in some partisan political activity, 501(c)(3)s must be mindful to protect their assets and to ensure that they aren’t giving away their lists, data, and spaces for partisan political use for free and that any rental transactions are well documented and comply with the law. Can our (c)(3) rent out event space to candidates and other types of organizations? · Whether something constitutes impermissible support or opposition of candidate depends on the facts and circumstances. Some things the IRS considers in the event space rental context include (Rev. Rul. 2007-41): o Whether the facility is available to all candidates in the same election on an equal basis, o Whether the fees charged to candidates are at the organization’s customary and usual rates, o Whether the activity is an ongoing activity of the organization or whether it is conducted only for a particular candidate, and more! · Discussion of two examples. What about newsletter ad space? · If a 501(c)(3) rents / sells ad space in its newsletter or other publications, it can offer that same service to others (even candidates), but it must charge fair market value and allow all entities and candidates the same access without regard to political preferences. o Remember to indicate which ads are “paid advertising” in the publication. · If it usually gives out ad space for free (instead of requiring a financial transaction), it could potentially do the same with other organizations, but all free content must be nonpartisan. · What if a (c)(4) has a newsletter and wants to provide ad space to a (c)(3)? o It’s easier for (c)(4)’s to share resources with (c)(3)s since (c)(4)s can do everything (c)(3)s can do, and more! o A 501(c)(4) could rent space to the (c)(3) for fair market value or give it away for free. Voter Registration Files · 501(c)(3)s should not freely share with partisan organizations the voter registration lists or other data that it collects during voter registration or education activities. · This information is a valuable asset owned by the 501(c)(3). Voter registration files may only be rented to a 501(c)(4) or 527 at fair market value or exchanged for data of equal value. Even then, the circumstances in which these agreements can be made are complex, so it’s wise to get legal advice. · This type of agreement can also cause opposing parties or groups to raise their eyebrows and question the legality of the transaction. Before engaging in this type of transaction, figure out how much risk your organization is willing to incur. 501(c)(3)s can’t give things away for free to non (c)(3)s that could potentially use the (c)(3)’s assets for partisan political purposes. So, if you’re thinking about sharing your organization's resources with others, exercise caution and consult with counsel when needed. Resources: Monika, can you add a resource link to that revenue ruling you cited in the event space discussion? /episode/index/show/rulesofthegame/id/30987883

Ballot Measure Advocacy Takeaways from the 2024 BISC Conference 04/17/2024

Election Season Advocacy: What Your Foundation Needs to Know 04/03/2024

Election Season Advocacy: What Your Foundation Needs to Know Guess What! It’s 2024, which means we have a BIG election on the horizon. Not only will voters take to the polls to decide who will be our next President, but they’ll also be invited to speak their voice in relation to ballot measures and down ballot races that will impact our laws and determine who will represent us in local government, state legislatures, Congress, the courts, and more! With so much at stake, many private and public foundations may be curious whether they have a role to play. The answer is YES! And, this episode of the podcast will discuss the rules foundations need to know when funding and engaging in nonpartisan election activities. Attorneys for this show Monika Graham, Tim Mooney, Natalie Ossenfort Show Notes · General rule: private and public foundations (as 501(c)(3) organizations) are permitted to engage in and fund nonpartisan election season activities. o No support or opposition of candidates for public office (including candidates running in “nonpartisan” races) o No telling people who to vote for on their ballots or encouraging them to vote for particular political parties o Keep it NONPARTISAN. The facts and circumstances matter. o Remember that special rules will apply to private foundations when it comes to voter registration activities and ballot measures (discussed later in this episode) · General GOTV Activities (not talking voter registration here) o Both private and public foundations are permitted to engage in nonpartisan get-out-the-vote (GOTV) activities § Avoid referencing parties or candidates § Do not suggest who people should vote for § Use nonpartisan targeting only o Examples § Communications posted on social media reminding readers that “Your Vote is Your Voice” without reference to candidates and parties and without suggesting that people vote for candidates who have particular stance on issues of importance to the foundation § Communications circulated at local events that remind people to “Vote. It’s Easy!” and provide information on where, when, and how to vote. · Make sure you get the information correct · Don’t target your outreach based on partisan criteria (i.e. populations / communities who you think are likely to vote for certain types of candidates) o As always, remember that other laws (like state law) may apply to your work in addition to the tax code rules requiring nonpartisanship. · Candidate Education o Offer educational resources and materials to ALL candidates o Provide only information that is previously gathered § Avoid generating and analyzing new data or conducting new research per a candidate’s request § But, do feel free to point candidates to information posted publicly on your website o What if a candidate or campaign staffer calls your offices asking for talking points for an upcoming rally? Resist the urge to provide them with that information because it equates to an impermissible candidate contribution. · Voter Registration o 501(c)(3) Public charities are permitted to engage in and fund nonpartisan voter registration activities. § This means that not only can community foundations directly fund their public charity grantees’ voter registration drives, but they can also engage in voter registration themselves. § Just remember to keep it nonpartisan and to follow state and federal law. o Now private foundations are subject to more restrictive rules when it comes to voter registration. § Private foundation cannot fund voter registration drives whether they are doing it themselves or making grants earmarked for them - unless the drive is nonpartisan and conducted in 5 or more states over multiple election cycles § This means that many of their public charity grantees’ will not be eligible to receive grants that are earmarked for voter registration. § BUT, it does NOT mean that public charities can’t use funds provided through a general support grant for nonpartisan voter registration purposes. · What about ballot measures? o Ballot measures are effectively pieces of legislation, and it’s the voting public with the power to vote on them. o Whether it’s a bond proposal, constitutional amendment, or other type of initiative, public charities are allowed to support or oppose ballot measures. o But, because of their legislative nature, support or opposition of measures qualifies as lobbying. o Public charities (like community foundations) are limited in how much lobbying they are permitted to do under the tax code and should count their ballot measure activities (and grants earmarked for ballot measure advocacy) against their lobbying limits. o Private foundations are effectively prohibited from lobbying due to a steep excise tax imposed by the tax code. As such, they should avoid supporting or opposing measures and earmarking grants for that purpose. Resources · Investing in Change: · Community Foundations o Rules of the Game a Guide to Election Related Activities: o Election Checklist for Public Charities: · Private Foundations o Voter Registration Rules for Private Foundations: o Voter Engagement Messaging and Activities for Private Foundations: · Election Activities of Individuals Associated with Private and Public Foundations: · 4/17 Public Webinar on Foundations and Election-Related Activities: /episode/index/show/rulesofthegame/id/30629863

Ask Us Anything 03/20/2024

Bold AF with Vu Le 03/06/2024

Bold AF with Vu Le For our 100th episode, we are excited to chat with the incomparable Vu Le of . Vu brings his unique blend of insight, humor, and a pinch of provocation to the table, all wrapped up in the perspectives you've come to know from his writing. Vu is a treasure trove of wisdom for the nonprofit world and his takes are all his own and don't necessarily reflect those of Alliance for Justice. A huge thank you for listening (and occasionally watching) our brand of spicy tax law for these 100 episodes, and what a better way to celebrate than with a guest who's not afraid to shake things up all in the name of progress and passion for the cause. • Introduction to Vu Le: His background and approach to writing about the nonprofit sector. • Humor and Seriousness in Nonprofit Work: The balance between using humor and addressing serious topics in the sector. • Finding One's Voice in the Nonprofit Space: Advice on how to develop a unique voice and perspective. • Critiques of Nonprofit and Philanthropy Practices: Vu's views on overhead costs, salary transparency, lack of investment in advocacy, and the need for nonprofits to challenge conventional practices. • Role of Funders and Power Dynamics: Discussion on how funders influence the nonprofit sector, the concept of "funder fragility," and the push for transparency and honesty in grantmaking. • Advocacy and Legal Challenges: The importance of advocacy work, the challenges faced by nonprofits in political environments, and the need for legal support. • Celebrating Nonprofit Achievements: Acknowledgment of the sector's vital role in societal progress and the need for greater appreciation and support. • Predictions and Challenges for the Future: Reflections on the sector's future challenges, including political influences and the need for a unified response to societal issues. Read more of Vu’s work at . /episode/index/show/rulesofthegame/id/30172098

The Connection 02/21/2024

The Connection On this episode, we discuss The Connection, Bolder Advocacy’s go-to guide on how to create and operate 501(c)(3)s, 501(c)(4)s, and political organizations. In 2024, we release our 5th edition of The Connection and include several important updates your nonprofit needs to know about as we move into a contentious election season. If your nonprofit has questions about how to safely operate affiliated organizations or how to boost civic engagement in coalition with organizations that have a different tax-exempt status than your own, The Connection has the answers. Attorneys for this show Natalie Ossenfort, Sarah Efthymiou, and Susan Finkle-Sourlis Show Notes · The Connection is one of Bolder Advocacy’s core advocacy resources. o It pairs well with: § “Being a Player” (guide to lobbying regulations for advocacy charities) § “The Rules of the Game” (guide to election-related activities for 501(c)(3)s) o This is the go-to resource for organizations on how they can amplify their impact and build grassroots power by utilizing multiple types of tax-exempt entities to address social problems and pursue policy change. o It discusses the best practices you need to know about when working with 501(c)(3)s, 501(c)(4)s, and PACs o The Connection was first published in 1988 and is primarily authored by Holly Schadler at Trister, Ross, Schadler, and Gold (with contributions from several of her teammates and allies in the field) o 5th Edition releasing end of February or early March 2024 · What can you find in THE CONNECTION? o Details on several different types of tax-exempt organizations and the advocacy activities they can engage in o The rules 501(c)(4)s need to know when lobbying and engaging in political activities o Information on how to create and operate affiliated c3 and c4 organizations (including a step-by-step overview of c4 formation procedures) o The rules governing PACs (including state PACs federal PACs and 527s) o Sample cost sharing agreement, sample 501(c)(3) public charity to 501(c)(4) grant agreement, information on the Lobbying Disclosure Act, and more! · What’s new in the 5th edition? o Information on new FEC disclaimer requirements for “internet public communications” o Social media guidance for affiliated 501(c)(3) and 501(c)(4) organizations o Details on a recent FEC ruling impacting the use of disclaimers for text messaging o Requirements for Super PACs and hybrid PACs (also known as Carey Committees) · "The Connection” also contains several concrete examples to illustrate how the rules apply in real-world scenarios (utilizing fictional tax-exempt organizations, of course). o These examples answer questions like: § What happens when a 501(c)(3) wants to make a grant to its affiliated 501(c)(4) for an educational research project? § What happens when a 501(c)(3) conducts a nonpartisan voter registration drive and wants its affiliated 501(c)(4) to have access to the list of registered voters? You’ll find out in “The Connection” that it can’t just give the list to its affiliated 501(c)(4) at no charge, but it could in some instances (when allowed under state law) sell its list at fair market value via an arms-length transaction. § And, what happens when a c4 publishes a monthly magazine on mission-related issues and then, in one edition of the magazine, decides to include an article about its candidate endorsements? · There are examples of required disclaimers for independent expenditures and electioneering communications too. o Brand new FEC regulations, published in January of this year, clarify what types of communications fall within the definition of “internet public communications” and what types of disclaimers are required when these communications expressly advocate for the election or defeat of federal candidates. o The latest edition of “The Connection” addresses how the law requires these disclaimers to be adapted for different communication formats. Whether it’s a communication including text and graphics, a video, or an audio-only statement, disclaimer requirements vary. o As such, “The Connection” is not only good for frontline nonprofit advocates, but for Communications, HR, and Accounting staff too! Resources (Strategies for Creating and Operating 501(c)(3)s, 501(c)(4)s, and Political Organizations) (A Guide to the IRS Lobbying Regulations for Advocacy Charities) (A Guide to Election-Related Activities for 501(c)(3) Organizations) /episode/index/show/rulesofthegame/id/30033588

Grassroots Advocacy 02/07/2024

Nonpartisan Election Year Advocacy 01/24/2024

Nonpartisan Election Year Advocacy On this episode, we discuss best practices for 501(c)(3) public charities conducting advocacy and nonpartisan activities, like get out the vote or voter education activities during an election year. Election year is upon us and the presidential primaries and caucuses, and primaries for other elected offices are starting to take place and will continue through the November General election. Attorneys for this show Monika Graham, Susan Finkle-Sourlis, and Leslie Barnes Show Notes · May 501c3 public charities advocate in an election year? How can a public charity be involved in an election? · Types of nonpartisan activities that a 501(c)(3) may conduct include: o Educating voters and candidates on the issues that are important to the people/community the organization serves. o Mobilizing voters and supporting democracy o Hosting candidate debates and forums o And much more · What are the IRS regulations surrounding advocacy and democracy work o IRS has held that supporting democracy is a charitable activity, 501(c)(3)s have a role to play in our elections! o Activities must further the organization’s charitable mission o Activities must remain nonpartisan, cannot support or opposition of candidates running for public office · The Facts and Circumstances test to determine whether or not communications or activities are nonpartisan. o The IRS applies a “facts and circumstances” analysis to determine whether a charity’s communication is conducted in a nonpartisan manner or is really a veiled attempt to support or oppose candidates. o When the IRS says “support or opposition” of candidates, that prohibition is broader than the explicit act of giving money to a campaign or saying outright that you should vote or not vote for a candidate. It’s not a bright line rule. o Analysis is required across the spectrum of risk. It is an assessment of the risk. · Discussion of the elements of the Facts and Circumstances Test. o Does the communication refer to a candidate or election? o Timing, upcoming election or is there another event outside of the organization that happened? o Organization is discussing its core issues? Or is it comparing the organization’s issues to a candidate’s position? o Who are you talking to? Who is the audience? Who are you targeting? o Do you have a track record of discussing the issue? o Are you discussing a wedge issue? What is a wedge issue? ** The discussion of this topic is from the view of 501(c)(3) public charities. Other types of nonprofits, like 501(c)(4)s do have the ability to undertake partisan activities as a secondary purpose. Resources – Guide to nonpartisan election related activities for 501(c)(3)s – Chart - Factsheet /episode/index/show/rulesofthegame/id/29565323

Ballot Measure Insights 01/10/2024

Ballot Measure Insights On this edition, we're thrilled to welcome from Elias Law Group, bringing her fresh perspective after successfully guiding clients to victory in the critical 2023 Ohio reproductive rights ballot measure fight. Emma will help shed light on the essential considerations for tax-exempt organizations before taking the plunge into a ballot measure campaign. Attorneys for this Episode Quyen Tu Tim Mooney Shownotes · Introducing Emma · Lessons from Ohio: o Progressives can work together to protect fundamental rights – and can be successful, even in states where conservatives otherwise control the state. o We are seeing conservatives attack the ballot measure process at every point in the process. We need to think about what we can do to bolster our efforts from the very beginning to defend against attacks. · · Ballot measure considerations Two major considerations: state campaign finance obligations and federal tax implications: o State campaign finance rules: § Registration & reporting obligations § Is there already a main ballot measure committee? § Do you want to be an independent expenditure committee? · Will you trigger registration or reporting by your planned activity? o If so, will this include donor disclosure? § Disclaimer obligations (including those you might not have thought of) - both for entities themselves and top donors. o Also, need to be careful about implicating federal campaign finance rules – even referencing federal candidates or parties in communications could create coordination issues and lead to inadvertent in-kind contributions. § Advocacy and education outside of registration/reporting requirements · Typically, communications to the public on the general subject addressed by the ballot measure, which do not refer directly or indirectly to the ballot measure itself, will not be regulated by state campaign finance. · However, state laws vary so you should check state and local law to confirm. o Federal tax implications: § In general, for public charities, advocating for or against ballot measures will be considered “lobbying” under federal tax law; public charities can only do an “insubstantial” amount of lobbying. · If the organization measures its lobbying under the 501(h) expenditure test, it will need to count work on a ballot measure as direct lobbying once a petition is circulated among voters for signatures. · If the organization measures its lobbying under the insubstantial part test, the IRS has provided less clarity; generally “influencing legislation.” · Communications to the public on the general subject addressed by the ballot measure, which do not refer directly or indirectly to the ballot measure itself, will generally not be considered lobbying. § Since 501(c)(3) organizations can only do an “insubstantial” amount of lobbying, many entities that engage in ballot measure work are organized as 501(c)(4) organizations, which can do unlimited lobbying under federal tax law. Also considered “primary purpose” activity. Resources · · National Conference of State Legislators: /episode/index/show/rulesofthegame/id/29387033

Nonprofit New Year's Resolutions 12/27/2023

Nonprofit New Year's Resolutions On this episode, we’re going to talk about those pesky new year’s resolutions… and no, we’re not talking about signing up for a gym membership or signing up for a marathon. We’re talking about resolutions that nonprofit organizations can apply as we enter into the year 2024. As you all know, 2024 is like Stefon from SNL, it has everything…primaries, general elections, an additional day… So as you are headed for your holiday break, we wanted to leave you with a list of things your nonprofit organization can do as we head into the new year. AFJ Team Members on this Episode: Natalie Ossenfort Monika Graham Victor Rivera On this Episode: Top ten things your nonprofit organization can do to maximize its advocacy in 2024: [drumroll] Host an elections training for staff ahead of the 2024 primaries and general election. Remember that while 501(c)(3)s are not permitted to support or oppose candidates for public office, they CAN engage in nonpartisan election-related activities. Bolder Advocacy can help you navigate the do’s and don’ts with an elections workshop. Request a through our website or check out one of our many 2024 public webinars. Consider organizing a GOTV campaign or voter registration drive. Check voter registration deadlines that apply to primaries and general election. Brush up on your state’s voter engagement and registration laws. Check out our created in partnership with The Democracy Capacity Project. Remember that all 501(c)(3) voter registration efforts must be nonpartisan. Prepare staff and volunteers to NOT answer the question: “Who should I vote for?” Offer services to all. Avoid partisan targeting. Invite members of your coalition to participate in a voter education campaign, which could include a nonpartisan . Guidelines for creating 501(c)(3) safe candidate questionnaires and voter guides include: Use unbiased, open-ended questions (distributed to ALL candidates). Cover a broad range of issues. You’ll also want to avoid comparing your organization’s position on an issue to where candidates stand. Publish all responses impartially and equally (with no editing or variations in font, formatting, etc.), and make the final guide generally available to the public. Remember NOT to include candidate pledges. Also, do not coordinate with candidates and campaigns. Just remember, facts and circumstances matter, so consult with Counsel if you have any questions regarding your specific voter education activities. Organize during election season. Remember to make the distinction between a candidate appearance and an incumbent appearance. Candidate appearances: must invite all viable candidates, avoid expressing support or opposition for candidate, do not allow candidate fundraising, and ensure compliance with state and federal election laws. Policymaker appearances (in official capacity, unrelated to candidacy): No equal opportunity required, but make sure you’re working with official staff (not campaign staff) and that you reiterate to the incumbent and their staff in writing that you are a 501(c)(3) that is not allowed to support or oppose candidates. Incumbents who are also candidates should not mention their candidacy at your event. And you should also avoid speaking to their upcoming election and focus, instead, on their official acts as policymakers. If you are a , consider making independent expenditures or coming up with a list of endorsements. 501(c)(4)s can engage in partisan political activity as a secondary activity of the organization, but they are prohibited from making candidate contributions and coordinating activities with federal candidates and campaigns (under federal election law) and are oftentimes subject to similar prohibitions at the state and local level. IE’s and other partisan activity may trigger campaign finance reporting. If your 501(c)(4) has an affiliated 501(c)(3), remember that 501(c)(3)s can’t support or oppose candidates. This means that any (c)(4) partisan work should be kept entirely separate from any joint projects you may have between your organizations and be carried out with (c)(4) resources ONLY. Don’t forget… you can continue to advocate or lobby for issues that are central to your organization’s mission! Know your organization’s . Be aware of state and local lobbying laws that might apply to your work. Our State Practical Guidance - Lobbying series (created in partnership with the Democracy Capacity Project) now includes state-level guidance for all 50 states and DC. Educate supporters, policymakers, allies, and other interested parties about the current policies and problems affecting your community. Produce resources that reflect the real story of your community and its needs. If you’re a 501(c)(3), avoid comparing your organization’s position on an issue to where the candidates or parties stand on that issue. Have a track record of working on the issue. Talk about issues as they arise, as opposed to timing your issue-based communications to coincide with upcoming election dates. Avoid suggesting how voters should vote or mentioning the election in relation to your issue advocacy. Don’t be afraid to , but remember the facts and circumstances matter. To avoid impermissible partisan activity, 501(c)(3)s should: Focus on what was said (the issue), not who said it (the candidate). Avoid discussing a candidate’s record or qualifications. Avoid talking about voters and making references to upcoming elections. Avoid identifying candidates by name. Issue disclaimers / reminders of your (c)(3) status and inability to support or oppose candidates for public office. Make sure any staff who speak on behalf of the organization are well-trained and understand the rules. Write an Op-ed and share your expertise on an issue that is core to your nonprofit’s mission, and establish your organization as a trusted thought leader. Launch or engage in litigation to challenge an unconstitutional law Litigation is different from lobbying and not subject to c3 lobbying limits. Remember that state and federal courts matter. To learn more about your state courts or the federal judiciary, visit . Resources: Factsheet Factsheet Factsheet /episode/index/show/rulesofthegame/id/29136018

Firewalls & Programmatic Independence 12/13/2023

Advocacy Successes 2023 11/29/2023

Advocacy Successes 2023 On this episode we’re excited to highlight nonprofit success stories from around the country. While we talk about lobbying on this podcast, legislative wins are one type of advocacy victory. We’ll look at some legislative victories as well as other types of advocacy such as relationship building, corporate advocacy, and funding wins. For some organizations, legislative victories can bring additional resources to your community. For other organizations, legislative victories can serve as harm reduction in the interim while we build a multi-racial democracy. We’ll also highlight strategies for talking about advocacy success to your donors and community. Lawyers for this episode Leslie Barnes Sarah Efthymiou Ballot Measure Victories · Ohio Issue 1 o Double digit victory o Intersectional coalition work of grassroots organizations o Ohioans for Reproductive Freedom was one coalition of community-led nonprofits ranging from faith-based organizations, to racial justice and transgender rights nonprofits, from labor organizations to trade associations. · Other states that led the way on democracy-related measures by Victor Rivera Labiosa California Legislative Victories – “Hot Labor Summer” · SB 616, paid sick leave o CA Work & Family Coalition, a coalition of community nonprofits o Part of the coalition’s strategy involved gathering variety of voices to be heard by collecting stories and bringing those voices to the policy makers. · SB 525, minimum wage increase to $25/hour for CA’s lowest-paid health care workers o SEIU United Healthcare Workers West Organizing Victories – Equitable compensation · Black Leadership Action Coalition of Kentucky (BLACK) and Advocacy Based on Lived Experience (ABLE) 2 grassroots organizations · Adopted policies that center impacted community members in their work by compensating directly impacted volunteers for contributing their lived experiences and community organizing skills. · See guest blog below in shownotes Strategies for talking to funders · Follow your funder’s lead · Investing in Change for other metrics to measure success · Don’t take credit candidate victories Resources · – Ballot measure hub tracking challenges to direct democracy, past and upcoming ballot measures · · Two-part piece on Equitable Compensation Alicia Hurle o o /episode/index/show/rulesofthegame/id/28826363

Foundation Funding Tips for Public Charities 11/15/2023

Foundation Funding Tips for Public Charities On this episode, we’re going to talk about funding… More specifically, how your nonprofit can raise dollars from private and public foundations to support your advocacy work. We’re joined on this episode by Emily Harting, AFJ’s Director of Foundation Relations. AFJ Team Members on This Episode: Emily Harting, Natalie Ossenfort, Victor Rivera Introducing Emily Harting Tips for Groups Working to Identify Potential Foundation Partners: Start with path of least resistance – review foundation websites. Find out who funds your organization’s allies (groups whose work you admire). Connect with board members to assess their networks and seek out their advice. Review your organization’s history of foundation funding and consider reapproaching former funders. Other Avenues for Foundation Research: ProPublica (free access) Instrumentl Candid Foundation Outreach Recommendations: Make the job of the foundation program officer as easy as possible. Show them clearly and succinctly the connection between the foundation’s priorities and the work of your organization. It’s always best to use a connection if you have one (i.e. board member or ally). Send an email introduction explaining your organization and how you think it aligns with the funder’s priorities. If your organization issued a report, is in the news, or is hosting an upcoming event, you can use that to prompt outreach to a potential funder. Best Practices When Preparing for a Meeting with a Potential Foundation Partner: Brief your staff, internal participants. Create a “POP” Agenda. Purpose (of meeting) Outcome (desired results) Process (rough outline of who speaks when and about what) If it’s an in-person meeting, plan to have some organizational materials ready. If possible, also have resources ready to send following the meeting to continue to build communication/relationship. Proposal Process: Understand foundation proposal guidelines and preferred templates (if any). If they don’t have a template or provide guidelines, best to build a general template including: Intro paragraph with funding request ($$ and purpose: program/GOS); A brief overview of who your organization is and its history; A description of your programs and recent work you’ve done; Conclusion reinforcing your request. Connect your work to the foundation’s mission to demonstrate shared priorities. Write clearly. If the foundation has a proposal submission portal, submit your application early in technical issues arise. Be prepared to provide a budget, proof of your 501(c)(3) status, recent audited financial statements or 990s, a board list with affiliation, a staff list, etc. What About General Operating Support (GOS)? Funders usually start with a project grant, but some will give GOS outright. Remember to keep the funder up-to-date on progress throughout the grant period and share work products (resources or reports, videos, testimonials etc). Report on the grant as requested, when requested, and with the materials requested. Your nonprofit is more likely to receive GOS after you have built a trust-based relationship with your funder. Other Practical Tips: Remember that both you and the funder are hoping your organization is a match: they want their funds to support great work! Program officers are people. You’ll achieve the best results when you have a trusted relationship with each other. Ask your program officers for advice and thoughts on your strategy and programs. Don’t be afraid of your funder. If you run into a challenge, tell them. They might able to assist you in overcoming it. Keep your funder in the loop. Don’t be afraid to toot your own horn! Play nice in the sandbox. Be real and be realistic. Resources: Bolder Advocacy – podcast episode – podcast episode - Also check out their physical offices where you can get assistance and resources for FREE in New York, NY; Atlanta, GA; Cleveland, OH; or Williamsburg, VA. /episode/index/show/rulesofthegame/id/28587068

PAC Taxonomy 11/01/2023

Project Grant Rule 10/18/2023

Ask Us Anything 10/04/2023

Funding Voter Registration 09/20/2023

Voter Registration Revisited 09/06/2023

Voter Registration Revisited Did you know that 60% of eligible voters are never asked to register to vote? Couple this startling fact with many new voter registration rules that have been introduced since the 2020 election—in many instances, to make it harder to register or stay on the voter rolls—we thought it was time to revisit this topic. This year, National Voter Registration Day is September 19 so there’s no time like the present for nonprofits to develop a plan to engage in voter registration! Attorneys for this episode: Monika Graham Natalie Ossenfort Quyen Tu Voter Registration Rules for 501(c)(3) Nonprofit Organizations (according to the Tax Code) Yes, your nonprofit can engage in voter registration activities! When doing so, public charities must ensure they are conducted in a nonpartisan manner and in compliance with all applicable federal and state laws. DO: Keep voter registration work nonpartisan Focus voter registration activities on community members with whom the organization serves or hopes to serve Focus on historically underrepresented populations (youth, low-income, etc.) Make their voter registration services available to everyone DO NOT: Attempt to influence which parties or candidates get elected to public office Coordinate activities with candidates or parties Prioritize outreach to populations because they are more likely to vote for certain types of candidates Reference candidates or parties Provide incentives and/or knowingly and willfully pay, offer to pay, or accept payment either for registering to vote or voting (payment includes anything having monetary value including pizza or prizes given out for voting). Relevant Voter Registration Federal Election Laws for 501(c)(3) Nonprofit Organizations When federal candidates are on the ballot certain FEC rules may apply, including: Organizations should not provide incentives and/or knowingly and willfully pay, offer to pay, or accept payment either for registering to vote or voting (payment includes anything having monetary value including pizza or prizes given out for voting). Organizations should not coordinate voter registration activities with candidates or political parties. Know Your State Laws on Voter Registration State laws can be very specific. For example: Texas requires any person who collects and returns completed voter registration forms to be appointed a (VDR) by each county in which they will be acting. Minnesota allows individuals to register to vote online. Third parties (like nonprofit staff) may not electronically submit a voter registration application on a voter’s behalf, but the voter submit the application, with the voter’s consent and in the voter’s presence. Many states also have restrictions on providing incentives for voter registration (like FEC regulations), so check your state’s laws for more. In California, if you request more than 50 voter registration cards, you must submit a distribution form that (among other things) requires you to summarize your . Check out our series. We currently have 19 states available, but more coming soon! Foundations CAN Support Voter Registration Foundations can provide grants for nonpartisan voter registration activities only! Public Foundations can fund voter registration directly or indirectly by making general support grants. While the rules for Private Foundations are more restrictive, 501(c)(3) organizations can potentially use their general support grants to support voter registration drives (if not prohibited in grant agreement). In addition, Private Foundations can make specific project grants for voter registration drives in limited circumstances. Make a Plan for 2024 Now! Check out Nonprofit Vote’s website for tips and shareable posts. Train your staff and volunteers are on the rules! Make your own plan to vote! Resources       /episode/index/show/rulesofthegame/id/27946809

Evaluating Advocacy 08/09/2023

Advocacy in Action: People's Parity Project 07/26/2023

Sports and Tax Exemption 07/12/2023

Fiscal Sponsorships 06/28/2023

Fiscal Sponsorships So let’s say you have a really good idea for a tax-exempt organization, and hooray it’s charitable activities so you’re all set to ask the IRS for recognition! You even have some potential funding sources, and you’re ready to go. But oh that pesky IRS recognition process – until recently Form 1023s could take up to a year or more to process! Sure you can wait, but you can also find an existing (c)(3) to be your fiscal sponsor and get going much more quickly. On this episode, we chat about how fiscal sponsorships work. Attorneys for this episodeLeslie Barnes Tim Mooney Quyen Tu 1. What is a Fiscal Sponsorship? Orgs that let you borrow their nonprofit designation. Mostly (c)(3), but (c)(4) can be a fiscal sponsor. File Notice of Intent to Operate as (c)(4) with IRS Form 8768 Their nonprofit rules = your nonprofit rules. Employment policies (compensation, benefits, hiring/firing, anti-discrimination, etc) Benefits = operational support for your project – HR, Legal, Accounting, Tax – allowing you to focus on your programs. 2. Types of Fiscal Sponsorships Two different ways this is done. IRS has various models. Money does to the FS, there’s an agreement between the parties (sponsor and project) Examples: Tides Center sponsors Lift Louisiana, a project focused on improving health outcomes for Louisiana women, families, and their communities Examples: Burning Man Project own Black Rock City, LLC (a single member limited liability company) under a Model L sponsorship, BRC hosts an annual art and culture event, based on self-reliance. 3. To Fiscal Sponsorship or not? Project Perspective: Quickest way to “get up and running” for funders. Provides many of the traditional markers of established orgs. Is your org staffed to meet admin and compliance independently? Do you want to seek GOS grants Their rules = your rules: Will your project involve lobbying, voter registration drives, or other types of nonpartisan civic engagement? Fiscal sponsor perspective Fiscal sponsor must maintain control over project, assets, and liabilities 4. Spinning Off or Exiting the Fiscal Sponsorship Sponsorship agreement should include an off ramp Provisions for transferring assets, including IP Example from Tim – X-PAC fiscally sponsored by Portland League of Women Voters 5. Seek Legal Advice Resources – complete with explainer videos, sample budgets, and factsheets for funders and projects. Private foundations that award grants to sponsored projects must do so using a specific project grant - most comprehensive list of resources on the web for understanding what fiscal sponsorship is, if it’s right for your charitable project and how to go about finding and vetting potential fiscal sponsors. Need we say more?? by Gregory Colvin - weekly conversation focused on the needs, challenges and goals of fiscal sponsors. – running the Fiscal Sponsorship Cooperative to provide support and capacity for fiscally sponsored projects to form and run their own nonprofits – an interview with Mariana Ruiz Firmat /episode/index/show/rulesofthegame/id/27275589

Ask Us Anything 06/14/2023

An Introduction to PACs 05/31/2023

Resignation Advocacy 05/17/2023

Resignation Advocacy Sometimes, public officials don’t behave the way we hope they will. Whether it’s a conflict of interest, outright corruption, or even a criminal offense we have seen examples of government officials that break the trust of the people they serve. While some may find their way out of office at the next election or through impeachment, those options may not be available. On this episode, we tackle advocating for resignation when a problematic public official needs to step down now. Attorneys for this episode Natalie Ossenfort Tim Mooney Why would one advocate for resignation over something else? Lifetime tenures with no end of terms Impeachment processes aren’t politically feasible Elections for the term are years away and the conduct is too egregious to wait out For 501(c)(3)s: Prohibitions on supporting or opposing candidates for public office Can my nonprofit call for the resignation of appointed or elected officials? The IRS has given no guidance on this, but we can make some informed calls based on parallel guidance Answer: Yes, almost without limit unless the call for resignation touches on limited or restricted activity Isn’t this the same as supporting or opposing candidates? Not usually - no elections involved in a call to resign. Calls for resignation could be an election issue, however (tread carefully if a (c)(3)) Special caution should be exercised if advocating for resignation of an elected official (e.g. don’t want to suggest who should (or should not) be elected to fill the position if resignation happens) Note this is very different than supporting a recall vote, which is an election and would therefore be prohibited activity for a 501(c)(3) Could this be lobbying? Only if there is a process where there is a vote of a legislative body and you advocate for a vote i.e. An oversight committee considers the conduct of a member and votes on a resolution call for expulsion, impeachment or resignation. Examples Calls in years past for President Trump to resign (sorry you’ll have to be more specific) before and during impeachment(s) that did not support/oppose any votes on impeachment in the House or the Senate trial Calls for Justice Thomas to resign in light of discovery of unreported financial conflicts of interest. Sweetheart real estate deals, private school tuition, and lavish vacations. Oh my! Calls for Rep. Santos to resign after indictment on multiple federal criminal charges Resources /episode/index/show/rulesofthegame/id/26846496

Nonprofit Detective 05/03/2023

Preparing for Politically-Motivated Attacks 04/19/2023

International Grantmaking 04/05/2023

Funding 501(c)(4)s 03/22/2023

Funding 501(c)(4)s We sometimes refer to 501(c)(4)s are the multitools of tax-exempt organizations because they can advocate in so many ways. But because they can engage in partisan political activity, they aren’t as easy to fundraise for… but that’s where this podcast steps in! On this episode, we cover the ways to fund a 501(c)(4) and why it’s something all funders should consider to achieve their policy goals. Attorneys for this episode Leslie Barnes Natalie Ossenfort Tim Mooney Shownotes It’s harder to fund a (c)(4) compared to a (c)(3) - why? Individuals cannot deduct contributions from income tax (that’s why disclaimers required notifying donors that contributions are not tax-deductible) Foundations can only fund what they can do themselves (rules are more restrictive for private foundations that for public foundations) Both prohibited from funding partisan political activities Ability to fund lobbying varies based on type of foundation Why fund a (c)(4)? They can do more in relation to the causes you care about (which may be important if you’re an individual funder) Unlimited lobbying Some partisan, political activity (as secondary activity) They might have better expertise than other orgs Subject matter experts, staff Bigger impact in systems change, change the electoral landscape How to fund Individuals Not many restrictions donations not tax deductible Public charities/Public foundations Need to restrict funds from being used for partisan electoral purposes Best to direct how much of the funds can be used for lobbying By default, grants to c4 are treated as lobbying absent evidence to the contrary (count against grassroots lobbying limit) Grassroots lobbying grant counts against Grassroots lobbying limit Direct lobbying grant counts against direct lobbying limit IF you can show that funds were actually spent on direct lobbying (otherwise, default is to count against GR limit) Can make a controlled grant to avoid having to count the grant against lobbying limits, but this requires grantee to use funds for non-lobbying purposes Example – granting unused lobbying capacity Private foundations Expenditure responsibility grants 1) Requires pre-grant inquiry (develop level of trust with potential grantee to build confidence that grant will be used only for specified purposes. 2) Requires a written, signed grant agreement Has to restrict lobbying, partisan political activity, voter registration In most cases, must also restrict grants to individuals 3) Requires grant reports on how funds were spent and progress toward achieving grant objectives Also can use this rule to fund other nonc3s. Resources /episode/index/show/rulesofthegame/id/26285688

Advocacy by Public Foundations 03/08/2023

Rules of the Game: The Bolder Advocacy Podcast

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