By David Tyahla
[Editor’s note: A recent Grassroots Soccer Biz column concerned some of our readers with its comments that lobbying efforts could hurt a soccer organization’s non-for-profit status. So we went to the experts for more information and have some good news! Read on.]
The U.S. Soccer Foundation, based in Washington DC and the Major Charitable Arm of Soccer in the U.S., often receives inquiries about what types of advocacy soccer organizations can undertake in support of local, regional, and national soccer projects.
From bond initiatives and zoning decisions affecting local field-building projects to federal funding for the Land and Water Conservation Fund, we receive many questions about whether and how your soccer organization can lend its voice to the decision-making process. We thought it would be helpful to start the discussion with a few of the most commonly asked questions along with the best advice we have available on the subject. Our advice includes information provided by Alliance For Justice, which offers comprehensive resources on this topic on its website www.afj.org.
Q Can our soccer organization “lobby” – and not put our non-for-profit status at risk?
A. This answer comes as a surprise to many, but the good news is that every non-for-profit soccer organization can (and in many cases should) lobby, within limits!
Federal tax laws allow all non-for-profits to engage in reasonable amounts of lobbying as long as it is not a substantial part of your overall activities. In fact, if your activities are predominantly local in nature, you are most likely not engaging in “lobbying” at all.
Q. What is “lobbying?”
A. Simply stated federal tax law defines “lobbying” as an attempt to influence legislators in support of or in opposition to specific legislative proposals. “Direct lobbying” is communication with a legislator that expresses a view about specific legislation, while “grassroots lobbying” is communication with the public that expresses a view about specific legislation and includes a call to action.
Q. So, when our organization contacts our School Board or Parks and Recreation Commission about the need for more fields, are we “lobbying?”
A. No, actually you’re not “lobbying.” Federal tax law narrowly defines the term “Legislator” as a member of a legislative body or his/her staff. This includes “Executive Branch” officials who participate in the legislative process, such as Governors or Mayors who sign or veto legislation.
This means that administrative bodies – including school boards, utilities commissions or districts, planning and zoning boards, parks and recreation commissions, and other special purpose bodies (whether elected or appointed) – are NOT considered legislators under federal tax law. Therefore, contacting any of these groups about the need for more playing fields is not “lobbying” for purposes of the Federal law.
Q. Can our soccer organization endorse or oppose political candidates?
A. The short and clear answer here is NO! A 501(c)(3) organization is strictly prohibited from direct involvement in campaigns for any public office, from your local dogcatcher to the President of the United States.
We’ll cover other questions in future editions of Grassroots Soccer Biz, including how working on local bond initiatives fits into all of this, the importance of state and local laws in this area and even the role of the individual. We’ll also attempt to explain the importance of being an advocate for the game – at all levels of government – and share examples of how you can get more involved.
But as a start, it’s important to know that, in particular, your soccer organization can, and should, get organized and call upon your elected leaders to make the development of soccer fields a priority in your community. By staying on the sideline and not fully exercising your legal rights, the game suffers and “falls to the back of the line” while key decisions are being made on how your community’s limited public recreation resources are being allocated.
Please note: The information contained in this article is being provided for informational purposes only. The information is not a substitute for expert legal, tax, or other professional advice tailored to your specific circumstances, and may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code.
Dave Tyahla is the Director of Government Relations for the U.S. Soccer Foundation, the Major Charitable Arm of Soccer in the United States. www.ussoccerfoundation.org