RULES OF ENGAGEMENT
Many nonprofits have long avoided involvement in anything that involves, public policy, advocacy or lobbying. While the IRS does prohibit political campaign intervention by 501(c)(3) organization, there are many options still available to nonprofits - and much happening in the legislative realm that impacts us.

The Internal Revenue Service rules define what lobbying is and what the spending limits for lobbying are for nonprofits.  A 501(c)(3) nonprofit can’t spend all of its money on lobbying, but it can spend a sizeable amount.

Direct or Grassroots lobbying?
501(h) election: Would your nonprofit benefit by making this election to help define lobbying limits?
Lobbying Exceptions: activities that are NOT lobbying

The essence of New Hampshire’s definition of lobbying is contacting legislators and certain executive branch decision-makers to promote or oppose legislation; and a person who does this for pay is a “lobbyist” and must register with the Secretary of State.  NH lobbyists must comply with easy reporting requirements.

NH Lobbying Rules

Congress adopted the Lobbying Disclosure Act which defines lobbying and reporting requirements for registered lobbyists differently from the IRS regulations for charitable organizations.  You must register if you reach a threshold for time and funds spent on lobbying a federal official.  The LDA is a reporting law, and does not set limits on lobbying activities or expenses—that is done by the IRS rules.

Federal Lobbying Disclosure Act: Is your organization subject to it?

All nonprofits can provide important information that voters need as they elect their representatives.  A 501(c)(3) organization may not engage in partisan political activity.  In other words, the organization cannot do anything that supports or opposes a candidate for office.  501(c)(3)s can, however, engage in a variety of nonpartisan election-related activities. 
Learn more…  

IRS Fact Sheet
On-Line Educational Resources
Permissible 501(c)(3) election-related activities
Voter education
Video Interview with Isaiah Castillo of AFJ

Funding Advocacy
Public and Private foundations can fund 501(c)(3) public charities engaged in advocacy.  They do not need to restrict grantees from using their funds for lobbying.
Learn more...

Lobbying with Federal Funds
Nonprofits may not use federal funds to lobby, except for lobbying specifically authorized by federal law.  Nonprofits may use federal funds to provide technical assistance if requested to do so by legislators.  Nonprofits may use federal funds for self-defense lobbying.  For questions and answers on nonprofit lobbying and advocacy, including lobbying with federal funds, please go to FAQ #8 at  http://clpi.org/the-law/faq.

“OMB Circular A-122,” on Cost Principles for Non-Profit Organizations, states the restrictions on lobbying with federal funds and the exceptions to those restrictions. 
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Read the Top 10 Reasons to Lobby for Your Cause, adapted from The Center for Lobbying in the Public Interest.

Read the Frequently Asked Questions about Lobbying for more information.

The May 2007 issue of The Chronicle of Philanthropy featured an Article by Robert Egger,Founder and President of the DC Central Kitchen, about nonprofits and political process entitled "Charities Must Challenge Politicians"