U.S. charities may spend some of their time and money on lobbying, as long as those organizations don’t primarily exist to influence federal legislation. This rule applies to all charitable nonprofits, which run the gamut from hospitals to social service providers, museums and environmental organizations.

Charities can lobby by directly contacting lawmakers or other public officials to propose, support or oppose legislation. They may also engage in indirect – or grassroots – lobbying by encouraging their supporters and other people to contact public officials for the purpose of influencing legislation.

The Internal Revenue Service assesses charities’ lobbying activities in two ways. First, the IRS states that lobbying, including staff time and organizational expenses, cannot be a “substantial part” of what a charity does. There’s no official definition of how much lobbying is too much.

Since the concept of a “substantial part” is unclear, charities that regularly lobby can select an expenditure test called the 501(h) election. It sets specific........

© The Conversation