On this episode of Rules of the Game, we’re going to talk about money. Because at this point you already know that 501(c)(3) public charities and 501(c)(4) social welfare organizations are allowed to lobby and pursue robust advocacy agendas, but how can they secure funding to make their short and long-term advocacy goals a reality? Stick with us for the next few minutes, and we’ll have the answers you are looking for.    Our hosts for this episode:  Natalie Ossenfort   Jen Powis    MISCONCEPTION #1: Foundations are not allowed to fund lobbying - REALITY: Both public and private foundations can fund grantees that lobby  COMMUNITY FOUNDATIONS  Just another type of public charity  Allowed to engage in lobbying and directly fund grantee lobbying activities  Lobbying grants will count against lobbying limit of foundation and public charity grantee  PRIVATE FOUNDATIONS  Rules for private foundations are a bit more restrictive than those for public charities / community foundations  Not allowed to engage in lobbying and effectively prohibited from earmarking grants for lobbying purposes (if they do these activities, the foundation and managers are subject to a prohibitive excise tax)  This does not mean that private foundations can’t fund grantees that lobby:  General support grants are not earmarked for any particular purpose, so a grantee could choose to use those funds for lobbying without exposing their private foundation funder to an excise tax   Specific project grants are another option. So long as the grantee’s project budget clearly delineates between lobbying and non-lobbying expenses, the private foundation can fund up to the non-lobbying portion of the grant request without earmarking funds for lobbying / exposing itself to an excise tax.   Grantees can go to multiple PF’s, each can give up to the non-lobbying portion of the grant request.  GENERAL  Both private and public foundations must prohibit their funds from being used for partisan political purposes / support or opposition of candidates  Grantees should carefully check the language of their grant agreements to see if lobbying is prohibited. Language that says that the funds are “not earmarked for lobbying” is not the same as language that says that lobbying is prohibited.  EXAMPLES that sound restrictive, but actually permit lobbying:   “Lobbying and Non-Permitted Uses: This grant is not in any way earmarked to support or carry on any lobbying or voter registration activity. Grantee warrants that none of these funds will be used to influence legislation unless permitted by law.”  “This grant is not earmarked for influencing legislation within the meaning of IRC Section 4945(e), and the foundation and Grantee have made no agreement, oral or written, to that effect.”    MISCONCEPTION #2: Foundations can’t fund public charity voter registration drives  Both private and public foundations can fund the NONPARTISAN voter registration activities of public charities, but the rules for private foundations can be a bit complicated...  VR Drive must be nonpartisan, over multiple election cycles, in five or more states and cannot be subject to conditions requiring use of the funding in a specific state or election cycle.  There are also requirements related to the grantee’s finances (e.g. at least 85% of organization’s income must be spent on activities relating to the purposes for which it was organized)  Public charities can receive an advanced ruling from IRS certifying their ability to receive private foundation voter registration grants (confirms that organization meets the requirements of sec. 4945(f) of tax code)    MISCONCEPTION #3: Foundations are not allowed to fund 501(c)(4)s. REALITY: Both private and public foundations can fund 501(c)(4)s.... if they know the rules  COMMUNITY FOUNDATIONS  Can fund any work conducted by 501(c)(4) that the commu