Advocacy 101:How Foundations Can/ Cannot Engage in Public Policy and Advocacy

Andrew SchulzVP Legal & Public PolicyCouncil on Foundations

Agenda

• Legal Issues• Public Policy as a Strategy• Readiness for Public Policy Work

Legal Issues

Lobbying

• Private Foundations may:– Engage in legislative communications– Nonpartisan analysis, study or research– Self-defense communications– Communicate with government officials

about projects funded jointly

Lobbying continued

• Private Foundations may not:

– Engage in lobbying as defined by the IRS without incurring prohibitive taxable expenditures

– i.e., supporting or opposing specific legislation directly to a legislative body or indirectly through a public call to action.

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Direct Lobbying

• Communication • With a legislator • Expressing a view • About specific legislation

Grassroots Lobbying

• Communication• With the general public• Expressing a view• About specific legislation• Including a call to action

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Legislators Defined

• Federal, state & local level representatives and their staff

• Executive officials when participating in formulation of legislation

• The public, if it is a ballot measure• Not members of special purpose boards

(planning commissions, zoning commissions, school board)

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Advocacy

• Non-lobbying– Regulatory work– Litigation– Talking to

legislators about your foundation’s work

• Lobbying– Asking legislative

staff to support funding for local homeless shelter

– Asking public to ask County Council members to support increased taxes for education

What is not lobbying?

• Activity that does not meet the definition (direct or grassroots)

• Regulatory exceptions:– Examinations and discussions of broad

social, economic, and similar problems– Nonpartisan analysis, study, or research– Requests for technical advice or assistance– Self-defense

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• Required elements: – Full and fair discussion of the facts– Report may advocate a position on

an issue– May discuss legislative issues– May not directly call the recipient to

action– Appropriate distribution

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Nonpartisan Research/Analysis

Self-Defense

• May express a view to legislators about issues affecting the charity’s: – existence– tax-exempt status– powers and duties– the deductibility of contributions

• Can be used proactively• Not applicable to grassroots lobbying

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Funding Advocacy

• Not required to prohibit the use of grant funds for lobbying unless grant requires “expenditure responsibility”*

• General support grants to public charities not considered lobbying expenses unless earmarked for lobbying

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Funding Advocacy

• Specific project grants to public charities that lobby are not lobbying if:– Fund up to the non-lobbying amount of the

project budget– Reasonable reliance on budget from

grantee is permitted – Grant not earmarked for the lobbying

activity

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Public Policy as a Strategy

Why Engage in Public Policy?

• It’s the mission• It’s enlightened self-interest• It’s solving social problems• It’s democracy• It’s relationship building

Resistance

• It can’t be legal• Inappropriate for us, too public• Can’t make a difference• Lack capacity, time, expertise or

resources• Reputation• Takes too long• Results aren’t measurable

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Benefits

• Advances mission• Leverages grant funds• Increases impact• Solidifies relationships• Builds credibility & legitimacy• Distinguishes from the crowd

Readiness for Policy Work

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Building Blocks

D.

Understanding and skills

A.

Values, culture, and will

C.

Resources

B.

Relationships

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Values, Culture, and Will

• Dedicated to long-term and broadly-shared solutions

• Willing to use position of influence• In for the long haul• Willing to commit resources

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Relationships

• Trusted, perceived as credible source• Well-connected board and staff• Established relationships in the

community• Relationships with policymakers

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Resources

• Decision-making process• Staff time• Communication systems• Internal knowledge management

system• Recordkeeping system• Assessment process

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Skills and Knowledge

• Facilitation skills• Relationship-building skills • Knowledge about policy context and

players• Policy skills• Strategy development• IRS rules• Issue expertise

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Getting Policy Expertise

• Hire experienced staff • Develop in-house capacity through

training, TA, mentoring, on-the-job experience

• Collaboration• Grantees

Role of CEO, Board Members

• CEO’s set the tone for policy avenues

• Board members serve in the following advocacy roles:– Ambassadors– Door-openers– Cultivators– Closers

Choosing Issues

• Consider positions when:– Aligned with your mission.– You care about (passion).– Important to the community.– Foundation has expertise on the issues.

Timing

• Is a policy issue ripe for action?– What is the political context?– Do we have potential partners?– What is public sentiment?– Is there a viable solution?– Is the policy making window open?

Resources - Publications

Questions?

Thank you!