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Related Clients

Moveon.org/change

Planned Parenthood Affiliates of California, and local affiliates

Foundation for National Progress (Mother Jones)

Trust for Public Land

Public Policy Institute of California

Related Resources

Related publications, FAQs, documents, and useful links for this practice area. View Resources »

Tax Treatment of Lobbying
& Political Activities

Nonprofits that wish to involve themselves in lobbying and political activities need to know beforehand what the tax laws will allow. For example, there is a limit on the amount of legislative lobbying a charity can do and an absolute prohibition on a charity participating or intervening in an election for public office. As one of only a few centers of expertise in the United States, Adler & Colvin has built a national reputation for advising charities about the complex tax laws that regulate lobbying and political activities conducted by nonprofits. We coordinate our representation with election law attorneys as needed.

We provide advice on:

  • Safe ways to advocate for social change.
  • Ballot measures, which could subject a nonprofit group to campaign disclosure rules in addition to tax laws.
  • Relating to and commenting upon candidates for public office.
  • Grants and donations to organizations that may lobby or activate voters.
  • Grass roots lobbying.
  • The Section 501(h) lobbying expenditure election, an IRS test that sets specific dollar limits a charity is allowed to spend on lobbying.
  • The "no substantial part" test for lobbying, an IRS test for charities that do not elect to have dollar lobbying limits under Section 501(h).
  • Political organizations, such as the tax-exempt Section 527 groups created primarily to influence nominations, elections, and appointments.
  • Tandems, families of nonprofit entities that share the same brand and are formed specifically to engage in a full range of political activities using 501(c)(3), 501(c)(4) and 527 tax exemptions.

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