Charities play a vital role in advocating for policy changes that align with their missions, but many leaders forget or do not know that charity lobbying registration is required before they lobby in various jurisdictions.
Understanding Lobbying Registration Requirements
Lobbying registration is governed by federal, state, and local laws, each with its own rules. Whether your charity must register depends on where and how you lobby.
Federal Lobbying
At the federal level, the Lobbying Disclosure Act (LDA) requires registration if:
1. Your Organization Employs In-House Lobbyists
This includes individuals compensated by your charity who:
- Make more than one lobbying contact with covered federal officials.
- Spend at least 20% of their time on lobbying activities within a quarter.
2. Your Lobbying Expenses Meet the Financial Threshold
If your charity spends $15,000 or more on lobbying in a calendar quarter, registration is required.
State and Local Lobbying
State and local governments have their own rules, which vary widely. Charities lobbying at these levels may need to register if:
1. You Meet Thresholds for Activity or Spending.
Many states require registration when an organization spends a certain dollar amount on lobbying or when individuals spend a specific percentage of their time lobbying.
2. You Engage in Broader Advocacy.
Some jurisdictions consider efforts to influence administrative agencies, municipal decisions, or even grassroots lobbying to fall under lobbying regulations.
3. You Make a Single Contact.
In some states, just one lobbying contact triggers the need for registration.
What Counts as Lobbying?
Lobbying often includes:
- Communicating with legislators or government officials to influence specific legislation.
- Efforts to affect administrative rulemaking or procurement decisions.
- Grassroots campaigns asking the public to urge officials to act.
Each jurisdiction defines lobbying differently, so it’s essential to understand how your activities are classified.
Charity Lobbying Registration
If your charity engages in lobbying, registration typically involves:
1. Filing an Initial Registration Form
Submit this to the relevant federal, state, or local agency before beginning lobbying activities.
2. Ongoing Reporting
Provide periodic updates on lobbying activities, expenditures, and contributions. Reporting frequency varies by jurisdiction but is often quarterly or annually.
Consequences of Noncompliance
Failing to register or report lobbying activities can have serious consequences, including.
- Monetary fines.
- Damage to your organization’s reputation.
- In extreme cases, it jeopardizes your 501(c)(3) tax-exempt status if violations indicate substantial lobbying activities.
Best Practices for Charities
1. Research the Rules.
Understand lobbying laws at all levels of government where you operate.
2. Track Activities.
Maintain detailed records of lobbying contacts, time spent, and related expenses.
3. Get Expert Advice.
Work with legal counsel to ensure compliance and avoid surprises.
Advocacy Is Powerful—But Stay Compliant
Lobbying is a powerful way for charities to create change, but understanding the rules is essential. By staying informed and registering where required, your charity can make its voice heard without breaking the law.
If you’re unsure whether your activities require registration, consult a legal expert to learn more.
Ellis Carter is a nonprofit lawyer with Caritas Law Group, P.C., licensed to practice in Washington and Arizona. Ellis advises nonprofit and socially responsible businesses on federal tax and fundraising regulations nationwide. Ellis also advises donors concerning major gifts. To schedule a consultation with Ellis, call 602-456-0071 or email us through our contact form.