Taxpayer-funded lobbying associations
From Sunshine Review
Contents |
Taxpayer-funded lobbying associations (TFLAs) are groups that use funds that come directly or indirectly from taxpayers for political lobbying purposes. Local entities—cities, counties, school district—use taxpayer funds to pay dues to belong to a group such as the New Jersey State League of Municipalities. That association then pays money directly to lobbyists to lobby for or against particular pieces of legislation. These associations tend to be 501(c) organizations.
[edit] Tax status and lobbying
Many lobbying organizations are 501(c) organizations, primarily 501(c)(3) and 501(c)(4). 501(c)(4) organizations are allowed to lobby by law. 501(c)(3) organizations, however, are typically considered non-political and non-lobbying because of the strict ban on political campaigning. They can still lobby, however, as long as they follow strict guidelines.
501(c)(3) organizations can lobby at all levels of government. The 1976 Lobby Law makes it clear that 501(c)(3)s can lobby within certain limits.[2] If 501(c)(3)s select the 501(h) option, they can lobby up to $1 million depending on the size of the organization: the 501(h) selection allows the organization to spend 20% of the first $500,000 of its annual expenditures on lobbying, and 15% of the next $500,000, until this reaches $1 million. [2]
[edit] Legality
A piece of legislation came to the Alaskan legislature floor for the 2008 ballot that would eliminate taxpayer-funded lobbying donations to election campaigns, but it failed. As of July 31, 2009, supporters of the bill have resurrected it and are trying to have it passed so it applies to the 2010 ballot.
Others question the Constitutionality of taxpayer-funded lobbying. In Texas, taxpayers filed a lawsuit against the Texas Association of Counties, a taxpayer-funded lobbying association. In this case, the judge decided the Texas Association of Counties has been in violation of the law by using association dues paid by Texas counties in their advocacy and lobby work.
[edit] Lobbying in practice
Lobbying is any attempt to influence lawmakers. Under different laws, however, the definition is more narrow.
There are several ways taxpayer-funded lobbying associations can lobby, including 501(c)(3) organizations. According to the law, lobbying occurs only when money is exchanged. If attempts to influence the legislature are done by members of the organization or volunteers, this does not count as lobbying under the law. [2]
Lobbying under the 1976 law allows for direct lobbying and grassroots lobbying.[2]
- Direct lobbying involves the stating a position on specific legislation to government employees who are involved in the formulation of legislation, or urging organization members to do so.
- Grassroots lobbying is when an organization states its position on legislation and urges the public to contact legislators. This is not to be confused with trying to get the members of the 501(c)(3) organization mobilized to contacting their elected officials, since a 501(c)(3) organization is only considered to be lobbying once tries to reach beyond its membership.
A 501(c)(3) organization may inform political actors of its stances on particular issues and urge them to pledge their support.[2] 501(c)(3) organizations may not publish or distribute statements by candidates, however, except as nonpartisan questionnaires or as part of news reports. The questions must be broad and unbiased, and be given to all candidates for office.[2]
501(c)(3)s can also set up affiliated organizations for use in engaging in unlimited lobbying (and certain political) activities. The U.S. Supreme Court has said[3][2] that 501(c)(3)s can establish affiliated 501(c)(4)s, 501(c)(6)s or other tax exempt affiliates (except Section 527 organizations, which include PACs) to carry on unlimited lobbying activities and otherwise permitted political activities as long as all funding comes from independent sources (for which no charitable tax deduction will be available). If the 501(c)(3) and its lobbying affiliate share office space, services, or staff, the affiliate must reimburse the 501(c)(3). [2]
[edit] Reporting lobbying activities
Under the federal Lobbying Disclosure Act of 1995, a 501(c)(3) organization is required to register and file semiannual reports concerning its lobbying activities if: [2] (1) the organization has at least one employee who is a lobbyist" (makes at least one "lobbying contact" and devotes at least 20 percent of his or her time to "lobbying activities") (2) the organization expects to incur expenditures on lobbying activities of $20,500 or more in a six-month period (January-June, July-December).
For outside lobbyists hired to lobby on behalf of a 501(c)(3) or other organization, the semiannual expenditure threshold is $5,000 rather than $20,500.
[edit] External links
[edit] References
- ↑ River School District, legislative receptions
- ↑ 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Top Ten Myths about 501(c)(3) Lobbying and Political Activity
- ↑ Regan v. Taxation With Representation, 461 U.S. 540 (1983)
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Lists of taxpayer-funded lobbying associations |
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| By type |
National organizations |
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