c270-effective government affairs programs - edits

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C270: Effective Government Affairs Programs

Steven WorthPresident

Plexus Consulting Group, LLC

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Course Description• Nonprofits serve as advocates for their

members and communities. Despite your experience or your organization’s size, establishing a grassroots network doesn’t have to be overwhelming.

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Course Topics• Why should nonprofits be active on

the legislative front?

• Creating a legislative policy

• Running a grassroots network

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Why should nonprofits be active on the legislative front?

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Lobbying: Historical Background

• Wendell Phillips (1811-1884): “Eternal vigilance is the price of liberty”

• Lobbying has been present throughout the nation’s history.

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Legality of Lobbying • First Amendment right to attempt to influence

legislation

• Congress shall make no law abridging the right of the people “to petition the government for a redress of grievances.”

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Defining Lobbying• US Senate: “Lobbying is the practice of

trying to persuade legislators to propose, pass, or defeat legislation or to change existing laws. A lobbyist may work for a group, organization, or industry, and presents information on legislative proposals to support his or her clients’ interests.”

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Trends in US Lobbying Expenditures

• 1998 $1.44B• 2009 $3.5B• 2013 $2.38B

1998 2002 2006 2010 20140

50100150200250300350400

Money Spent on Lobbying, in tens of millions of $

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International Influence in DC• 2012: 1886 individuals working for 550

foreign principles

• These individuals include 380 registered lobbyists and 1506 lobbying assistants.

(Source: Foreign Agents Registration Act Second Semi Annual Report 2012)

Update

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2014 Top Lobbying Spenders• US Chamber of Commerce $124,080,000 ($74,470,000)*

• National Association of Realtors $55,057,053 ($38,584,580)*• Blue Cross $21,298,774 ($22,618,980)*

• American Hospital Association $20,753,146 ($19,173,813)*

• American Medical Association $19,650,000 ($18,250,000)*(Source: Center for Responsive Politics)

*2013 Data

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2014 Lobbying Expenditures By Sector

1. Business $552,487,819 ($482,405,678)*

2. Finance/Insurance/Real Estate $495,759,815 ($489,249,927)*

3. Health $484,114,392 ($487,442,221)*

4. Communications/Electronics $381,272,131 ($393,715,530)*

5. Energy/Natural Resources $345,182,074 ($358,940,275)*

6. Transportation $217,192,170 ($223,067,514)*

(Center for Responsive Politics)

*2013 Data

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2014 Nonprofit & Association Lobbying

Foundations and Philanthropies

Business Associations

$39,360,105 ($44,154,333)*

$163,018,746 ($109,373,902)*

*2013 Data (Center for Responsive Politics)

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Why Associations Lobby• Special responsibility to represent members:

– Tracking and interpreting policy developments for members– Actively representing interests in policy development– Know your members’ expectations, where they stand on issues and how willing

they are to be involved

• At minimum association executives should give themselves a civics literacy test: – How many congressional districts do my members cover?– What are local, national, and international policy issues to watch?– Do my members know these critical issues and the association’s position on them?

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Individual Nonprofits and Policymaking

• Missions and legal structures may prevent some nonprofits from vigorous involvement in government affairs.

• Organizations without a specific political agenda should remain aware of key issues.

• Organizations lacking means to lobby can form or join a coalition to allow for their “voice” to be heard.

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Lobbying: Who Can Do What?• The IRS labels nonprofits as “501(c) Organizations.”• Three common 501(c)’s are:

– 501(c)(3)’s: “Religious, Educational, Charitable, Scientific, Literary Organizations.”

– 501(c)(4)’s: “Civic Leagues and Social Welfare Organizations.”

– 501(c)(6): “Business Leagues, Chambers of Commerce and Real Estate Boards.”

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Lobbying: Who Can Do What? 501(c)(3)’s “Religious, Educational, Charitable, Scientific, Literary

Organizations” Regulations:o “Attempting to influence legislation” cannot be “a substantial part of

activities…”

o “Substantial” is determined by the IRS using either:– The Expenditure Test: 501(c)(3)’s can spend between 15 and 20 percent

of their budgets on lobbying activities, depending on their size, or– The Substantial Part Test: The IRS determines if a 501(c)(3)’s lobbying

activity is appropriate on a case-by-case basis, using “all the pertinent facts and circumstances in each case.”

(Source: IRS.gov)

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Lobbying: Who Can Do What? 501(c)(4)’s: “Civic Leagues and Social Welfare

Organizations” Regulations:– 501(c)(4)’s may attempt to influence legislation

and take controversial positions as long as lobbying/advertising efforts promote social welfare.

• No disclosure of contributors/“dark money” perception

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Lobbying: Who Can Do What?* 501(c)(6): “Business Leagues, Chambers

of Commerce and Real Estate Boards” – Can engage in extensive lobbying activity

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Registering As a Lobbyist• Organizations that depend on government funding

directly or indirectly cannot lobby.• Lobbyists must register with the Secretary of the

Senate and/or Clerk of the House, disclosing:– The name, address, and telephone number of the

registrant and registrant’s client (if necessary).– A general description of business/organizational activities.– Major independent contributors ($10,000+) to the

registrant’s lobbying activities.

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Amplifying your voice through coalitions--A case study:

• The “Power of Four” Health Coalition– One professional society and three voluntary

organizations– Goal: to achieve increased research funding from the

federal government– Result: generated millions in research and education

funding related to common concerns

(We will revisit this “Power of Four” case)

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Creating A Legislative Policy

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Basics of Lobbying Techniques• “Old”

– Directly from interested party to decision-maker– Success determined by: • Who you know and what you offer

• “New”– Coalition building with strong grassroots emphasis– Success determined by:• Knowledge of decision-making process• Knowledge of decision-maker• Relevant facts convincingly presented• Relation to constituent interests • Public opinion

Either technique can yield success, or they can be integrated

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Direct Relations with Capitol Hill• Congress is inundated with written and verbal

communication.

• Don’t pity congressional representatives.

• Do have empathy for junior level staff.

• Understand the madness that staff must make sense of.

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Direct Relations: Mail • Personalize mail correspondence

– Interns are trained to separate bulk pamphlets and personalized letters.

– Bulk mail never leaves the mailroom.

– Write “from your heart.”

– Email is gaining acceptance; mail is losing power

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Direct Relations: Phone• Make sure all calls are made by a constituent.

– “All politics is local”– Rep. offices keep tallies of constituent and non-constituent

calls.

• Make sure caller is pleasant, informed, and to-the point.

• Urge callers to make it personal.

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Direct Relations with Capitol Hill• “Old” lobbying methods remain effective

– Get to know legislative assistants (LA’s), ideally on a first-name basis.

– Identify the preferred channel (phone, email, face-to-face) of information.

– Solicit LA feedback on information provided.

– Continuously fine-tune methods.

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Direct Relations: Focus on the LA’s

• Legislative assistants are generally experts in a specific policy field (ex.: Education, Energy).

• Representatives (with limited time resources) often defer to LA’s on policy positions.

• LA’s can discuss technical complexities of legislation within their area of expertise.

• Get to know relevant/important LA’s well!

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Making Friends in High Places*• Thomas Edison: Genius is “10 percent inspiration

and 90 percent perspiration”

• Despite its (friends in high places) reputation, effective lobbying is defined primarily by hard work.

• Having powerful friends is helpful, but knowledge of the policymaking process is critical.

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Making Friends• Define why you are relevant to the decision-maker• Establish relevance of your position in current policy environment

– If advocating additional health research-spending in an environment of growing budget deficit concerns, define how your position can contribute to the solution rather than worsening the overriding problem.

• Address the most appropriate policymakers– Who is in a position to help?– Who can recruit others to help?– Who is politically compatible with my position?– Which congressional committees are relevant?

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Making Friends• Respect the power of public perception.

– Notify news media and other outlets that can influence decision-makers.

• Respect decision-makers’ time constraints.– Don’t hesitate to speak to staffers.– Provide concise written materials.– Ensure that meetings do not exceed 20 minutes.

• Do not be a “foul-weather friend.”– Maintain contact even when you do not need help.– Send thank-you letters.– Be supportive during election season.

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Lobbying: Local to Federal • Many organizations have political interests in the state or

local realm (ex.: local education policy).• Local/State lobbying should be conducted by constituents

with strong local ties (not outsiders). • Increasingly, federal representatives are spending long

weekends in their home districts to focus on constituent attention– Lobbying at the state level can be beneficial for federal policy purposes.– Important districts can be identified for a multi-state lobbying strategy.– This multi-state approach can be contracted to a lobbying consultancy

or executed by organizations and coalitions.

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Technology and Lobbying*• Lobbying firms and government affairs directors utilize up-to-the

minute data on congressional activity to target lobbying efforts.

• Internet-Software: “Type in your area code to find your congressional representative”

• Most representatives have a contact/comment-submission tool on their websites.

• These websites can be distributed to organization membership for massive online write-ins.

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Creating a Legislative Policy: The “Power of Four” Case

• The “Power of Four” Health Coalition– One professional society and three philanthropic

organizations– Goal: to achieve increased research funding from

the federal government

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Health Coalition Keys to Success• A tight focus on coalition’s shared goal• Frequent, purposeful communication• “Strength in Numbers”

– Two of the organizations had insufficient funds to make an individual impact on policymaking.

• Yearly meeting– Determining future legislative goals– Evaluating current lobbying efforts

• Democratic process – Each organization had a single vote on decisions, despite large discrepancies in

funding contributions.• Group decisions on if and when to admit new members/expand the

coalition

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The “Power of Four” Case Results• The Health Coalition has helped to generate

millions of dollars in research and education.– These resources do not go to the four organizations, but

instead support government agencies and independent research facilities for the good of the field.

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Smart Lobbying: Averting a Crisis• Amendments to cancel a major government-

funded program were expected to be introduced in the House of Representatives as part of Congress' budget cutting efforts. An association represented the industry that would be crippled by the funding cuts.

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Smart Lobbying: Averting a Crisis• Steps Taken:

– Stakeholder Inventory: Developed a comprehensive list of supporters, opponents, and fence-sitters in both legislative and executive spheres

– Congressional Database: Compiled list of 535 Congressional members and their votes on the issue

– Up-To-Minute Analysis: Analyzed historical and current voting activity by committee, caucus, and other demographics

– Data-Driven Efforts: Used statistical and economic insights to enhance targeted lobbying efforts

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Crisis Averted• With intelligence-driven lobbying efforts, the

association was able to stave off the disastrous cuts by a large margin. Evidence indicated that opposition to the cuts had grown substantially over the course of the lobbying campaign.

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Running a Grassroots Network

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Technology and Government Relations

• We can mobilize people and resources quickly.

• Some of the best lobbying campaigns don’t involve a single personal visit to Capitol Hill.

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Handling Grassroots Public Affairs• If an association does not adequately address

political issues faced by members, membership may be viewed as expendable.– This provides for a challenge if members are pulling in

different directions. – To address this:

• Constantly monitor policy developments and explain relevance to members.

• Regularly solicit member feedback/determine greatest concerns.• Gradually build consensus among members.

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Keys to a Successful Grassroots Campaign*

• Broad coalition-building among groups of shared interests

• A simple but compelling message

• Effective delivery of message to appropriate decision-makers (representatives, legislators, industry leaders etc.)

• Organization members can contact their local press to help build local power-bases

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How Can We Influence Policy?• Some associations and association members feel

that their voice is “too small” for Washington.

• This thinking is invalid. Government has the capacity to be sensitive to the needs of small companies and nonprofits.

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Grassroots Victory: A Case Study• An association representing small companies in a small and relatively new

service industry learned of a federal government policy initiative that

would move massive amounts of new funding into programs that

essentially offer the same service. Policymakers had ignored the existence

of these companies, which had grown since their origins in the early 1970s

to become a $700 million industry covering 40 states. The government

program would be offered at the taxpayers' expense, which meant that a

large expansion of the program could wipe out many of these private

businesses.

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Grassroots Victory: A Case Study

• Strategic Steps Taken:– Proved credentials– Compiled relevant statistics on importance of industry

in US economy/society – Launched multifaceted campaign centered on a call for

public-private partnerships to achieve efficient service and industry growth• Letters to relevant executive agencies• Visits to congressional offices• Testimony at relevant Capitol Hill committee meetings

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Grassroots Victory: A Case Study• 104th Congress passed a bill to cut funding for

competing programs.

• The bill mandated public-private partnerships in the industry.

• Association members won federal contracts of their own!

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Grassroots Mobilization: Benefits• Adding clout to small/new organizations and industries• Adding credibility to positions• Reducing expenses and increasing marginal gains when

compared to individual corporate lobbying efforts• Providing for possible government contracting

opportunities• Enhancing capacity for intelligence-gathering and

strategic implementation

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Grassroots Networks and Lobbying: Two Cases

• Footwear Industries Association of America– Coalition-Building that changed national policy and the way

lobbying is done

• AWAC sale to Saudi Arabia– Grassroots lobbying that made history and launched a trend

QUESTIONS?

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Case Studiesand Presentations

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Case Study Format• How do we go about securing policy victory? Challenges/Considerations:

Strategic Issues:– What are the key issues that must be addressed? What is our simple/compelling message on such issues?– Who are our allies, opponents, and fence sitters? Do we have constituent access?– How do we leverage public opinion and energize our members? Can we form a broader coalition?– What is our suggested approach? What are the expected results of this approach?– How can these results be incorporated into our larger mission?– What are the major merits of and threats to our effort? How do we address these?Structural Issues:– What are our intermediate and long term goals?– How do we manage this relationship and deal with any unexpected developments that might occur?– What is our exit strategy and what are the conditions when we might choose to use it?– How do we measure progress?– What resources will be needed and where will they be found?– What are the strategic values that should govern this project? General Format:– Identify key issues– Propose solutions– Assess merits of each solution– Discuss expected results

• 20-30 minutes of discussion for each case • 7-10 minutes of presentation per team for each case

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Case Study 1• Legislation to address the need for increased infrastructure spending in

the United States• The Issue:

• At the end of August, the transportation department’s federal highway account will reach zero, requiring new funds for continued infrastructure maintenance• There is still time for congress to act, making the opportunity for

lobbying and advocacy ideal• The American Society of Civil Engineers is heading the efforts, noting

several bridges and roadways across the country that are in desperate need of maintenance

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Case Study 1• Policy Issue: influence a legislative solution to the lack of infrastructure funds needed for continued

maintenance of America’s roadways, etc.• Teams:

• 1. The American Society of Civil Engineers• 2. The Transportation Department, whose ideals line up with those of ASCE• 3. Jay Timmons, representing the National Association of Manufacturers, who is a Republican but

is having difficulty finding Republican backing for increased infrastructure funds• 4. Laborer’s International Union of North America, which cites the increase in employment that

infrastructure projects afford the U.S. economy• How do we go about securing policy victory? Challenges/Considerations:

• Who are our allies, opponents, and fence sitters? Do we have constituent access?• What is our simple/compelling message? Can we form a broader coalition?• How do we energize our members? How do we leverage public opinion?• What are the major threats to our effort and how do we address them?• What should be our level of involvement in this issue?

• 20 minutes of discussion• 7 minutes of presentation per team

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Case Study 2• Legislation to initiate election oversight in Afghanistan following issues

with the freedom and fairness of the most recent election• The Issue:

• Current President of Afghanistan Abdullah Abdullah is denying preliminary polls that indicate he is 1 million votes behind Ashraf Ghani in the race for president• Ghani has agreed to an audit of all polling centers to determine the

accuracy of the vote• Abdullah is asking for time to negotiate his position, despite the

indication of polls• Afghanistan needs to announce a new government soon before they

remain without a leader and illegitimate in the eyes of the international community

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Case Study 2• Policy Issue: influence a legislative initiative to oversee elections in Afghanistan• Teams:

• 1. Freedom House, a U.S. based NGO that deals primarily with determining levels of political liberty and freedom in countries around the world, which will be looking to support free and fair elections in Afghanistan

• 2. The State Department, which is trying to maintain a level of calm in the wake of the international tumult Abdullah’s dismissal of the election results caused

• 3. The Tajik American Cultural Association, which represents the largest base of Abdullah supporters ethnically

• 4. The Pakhtoon American Community Association, which represents the largest base of Ghani supporters ethnically

• How do we go about securing policy victory? Challenges/Considerations:• Who are our allies, opponents, and fence sitters? Do we have constituent access?• What is our simple/compelling message? Can we form a broader coalition?• How do we energize our members? How do we leverage public opinion?• What are the major threats to our effort and how do we address them?• What should be our level of involvement in this issue?


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Case Study 3• Legislation to curb the incidence of gun violence in Chicago• The Issue:

• The rapid increase in gun violence in Chicago over Fourth of July weekend has raised awareness of the issue in the eyes of the national public• The Chicago police department is currently on track to meet the

number of fatal accidents to police officers that it hit last year• More than 60 people were shot over the holiday weekend, leaving 11

dead as of Monday morning• The Chicago police department is undertaking efforts to increase

police patrol in areas of high volume gun violence

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Case Study 3• Policy Issue: influence a legislative solution enable Chicago and its police department to allocate

adequate funds to curb the incidence of violence in the city• Teams:

• 1. The Chicago Police Department, which will be putting officers’ lives on the line for the eradication of gun violence in the city

• 2. Mayor Rahm Emmanuel and his office, which fights for a peaceful city and is very much on the national stage for the status of crime in the Southern part of the city

• 3. Representatives from Illinois state government, which some would argue needs to better enforce the gun laws already in effect

• 4. Cure Violence, an organization that operates in Chicago and does exactly what its name indicates



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Case Study 4• Legislation to allow increased directed funding for border control efforts

in Texas• The Issue:

• The White House has formally requested $3.7 billion in funds from congress to deal with an emergency influx of unaccompanied minors from Central America • The money would go to several executive departments where it would

initiate increased control efforts in the Rio Grande Valley in Texas• The White House aims to increase the speed at which it can deport

these illegal immigrants• Immigration advocates have scrutinized the Obama administration on

the issue, arguing that the welfare of these children escaping violence in Central America should be their main concern

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Case Study 4• Policy Issue: influence a legislative solution enable Chicago and its police department to allocate

adequate funds to curb the incidence of violence in the city• Teams:

• 1. The National Border Patrol Council, a union that represents border patrol agents and staff• 2. Senate Appropriations Committee, in charge of appropriating emergency funds in a situation

like this• 3. The American Civil Liberties Union, which is warning against the jeopardizing of illegal

immigrant children's’ lives• 4. The Department of Homeland Security, in charge of border control efforts and the effective

execution of these efforts• How do we go about securing policy victory? Challenges/Considerations:



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Case Study 5• Legislation to address fiscal or military aid to Afghanistan and Iran to help

repel ISIS:• The ISIS issue has been gaining ground for weeks, and the U.S has

done little in response.• The Issue: Should we provide either hard or soft power to solve and fight

the ISIS incursion in the Middle East:• Hard power (military) would endanger more U.S lives, but could

potentially lead to a better outcome.• Soft power is more subtle, but that could be what the governments in

Iran and Iraq need to solve problems on their own soil.• Both have their issues, positives, and negatives.

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Case Study 5• Policy Issue: influence a legislative solution that would provide either hard or soft power to solve and fight the ISIS

incursion in the Middle East• Teams:

• 1. Legislative aid from the Department of Defense. (in favor of military intervention)• 2. Economist from the Institute of Peace, warns against military intervention (in favor of soft power)• 3. Ambassador from Iran, worried about military casualties (opposed to military)• 4. Senior Fellow at Heritage Foundation (opposed to fiscal aid)



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Case Study 6• Legislation to address harsh trade sanctions on Cuba:

• The U.S. still holds incredibly limited trade laws against Cuba.• The Issue: Should we be more lenient with the trade laws? To allow a

more fluid flow of goods and services throughout the region:• The current 21 page rulebook about exactly ‘who’ and ‘under what

circumstances’ are people able to travel or do business in Cuba, as published by the Department of the Treasury.

• Sanctions were meant for the Castro era, which has ended years ago.• Keeps a wedge in the trade equilibrium of the region, as there is

essentially an iron curtain that exists between Florida and Cuba.

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Case Study 6• Policy Issue: influence a legislative solution that would lessen the trade embargo the U.S has on Cuba, as it’s

disrupting a potentially prosperous region of trade. • Teams:

• 1. A region director from Maersk (approves in lifting the embargo)• 2. Town hall meeting director in southern Florida, afraid of increased Cuban activity in his neighborhood

(approves holding the embargo)• 3. Manager of a port in Miami, who would see a revenue increase. (approves lifting embargo)• 4. Cuban interest group in the southern Florida area, worried for backlash from Castro followers (approve in

holding embargo)• How do we go about securing policy victory? Challenges/Considerations:



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Case Study 7• Legislation to increase fracking ventures into northern Alaska:

• The U.S.’s current laws require months of certification and legalization to have the documents to build the necessary equipment to begin fracking in Alaska.

• The Issue: Should we be more lenient with the regulations? As there are valuable resources in Alaska that could lower the energy prices in U.S. markets:• While fracking may damage the environment, the chemicals disappear

within a year.• Sanctions keep U.S energy corporations from gaining access to the

resources in our own country.• Not only does it limit our resources, it would create thousands of new

jobs if companies gained free access to these natural gas hotbeds.

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Case Study 7• Policy Issue: influence a legislative solution that would decrease the regulation of fracking in Alaska, letting more

capital and jobs flow through the region. • Teams:

• 1. Partner from a Capital Venture firm in Chicago firm who wants to invest $20M in Alaskan gas markets (approval of lessen regulation)

• 2. Exxon office director, would see more revenue through this region (approves lessening)• 3. Pipeline company, would see jobs created by new pipelines being built in Alaska (approves the lessening)• 4. Chemical company that would supply chemicals for fracking, would see profit increase of 200% (approves

lessening)• How do we go about securing policy victory? Challenges/Considerations:



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Case Study 8• Legislation to decrease fracking ventures into northern Alaska, and to

increase natural resource regulations:• The U.S.’s current laws require months of certification and legalization

before organizations can conduct fracking in Alaska, but that isn’t enough, it needs to be outlawed, the detrimental effects to the environment are irreparable.

• The Issue: Should we be less lenient with the regulations? Alaska is our last region that remains untouched by corporate energy companies, who care only for profits and not for the destruction of the forests:• Fracking permanently damages the environment, the chemicals never

really disappear.• Sanctions keep U.S energy corporations from gaining access to the

resources.

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Case Study 8• Policy Issue: influence a legislative solution that would increase the regulation of fracking in Alaska, or even outlaw

it all together.• Teams:

• 1. Director of Green Peace, (approves in an increase in regulation)• 2. Senior Economist with the Department of Energy, sees no new ventures in Alaska (approves increase)• 3. Mayor of small town in northern Alaska, would see his land destroyed (approves increase)• 4. Avid Hunter Coalition, would see their livelihood's habitat wiped out (approves increase)



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Case Study 9• Legislation support or oppose continuation of the tariff program for sugar

imports in Japan:• Tariffs on Japanese sugar makes U.S. consumption of Japanese sugar

very expensive• Japanese farmers who are dumping sugar into the American market

can sometimes cut prices and undercut American producers, leading to a need for tariffs to support American businesses

• That being understood, the U.S. has maintained a goal of eliminating trade barriers, particularly with the other large world economies

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Case Study 9• Policy Issue: influence a legislative solution that would decrease the regulation of fracking in Alaska, letting more

capital and jobs flow through the region. • Teams:

• 1. American Sugar Alliance (ASA)• 2. Consumer Federation of America (CFA)• 3. National Confectioner’s Association (NCA)• 4. Brazilian Sugarcane Industry Association (UNICA)



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Case Study 10• The Trans-Pacific Partnership (TPP) Trade Agreement:

• Japan is currently negotiating membership terms• The Issue: Japan opposes the TPP fishing subsidies ban:

• Japan spends an estimated $4.6 billion on fishing subsidies each year• An estimated 68% of these funds are for capacity-enhancing purposes

while only 22% are for conservational purposes• Subsidy supporters contend that they improve Japan’s economy by

helping struggling fishing communities deal with rising fuel costs and other challenges

• Opponents contend that subsidies needlessly enhance Japan’s fishing fleet and cause overfishing

• The US’s current official position is support for the subsidies ban

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Case Study 10• Policy Issue: influence a legislative solution that would increase the regulation of fracking in Alaska, or even outlaw

it all together.• Teams:

• 1. Japan Fisher’s Association (JFA)• 2. World Wildlife Fund (WWF)• 3. American Fisheries Association (AFA)• 4. Association of National Organizations of Fishery Enterprises in the European Union



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Contact UsPlexus Consulting Group, LLC1620 Eye Street, NW Suite 210Washington, DC 20006

Phone: (202) 785-8940Fax: (202) 785-8949Email: [email protected]

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