By Dave Tyahla
Based in Washington, D.C., the U.S. Soccer Foundation often receives questions about the types of advocacy soccer organizations can undertake and whether and how they can lend their voices to the decision-making process.
In a recent edition of Grassroots Soccer Biz, we highlighted four of the most commonly asked questions along with the best advice we have available on the subject. What follows is additional information others have found useful. As in the earlier column, our advice includes information provided by Alliance For Justice, which offers comprehensive resources on this topic on its website (www.afj.org).
Q. You've already explained that 501 (c)(3) organizations are strictly prohibited from direct involvement in political campaigns. What about ballot initiatives like local park bonds or school bonds, which may include funding for more soccer fields?
A. You most certainly should lend your voice to such decisions. A 501(c)(3) organization can support, oppose, and even initiate ballot measures (such as school and park bonds). The IRS considers work in support or against a ballot measure to be "lobbying activity," NOT political campaigning. Why is this distinction important? Because it separates campaigns for political office from ballot initiatives. While your soccer organization can express support for a local park bond, you may not comment on specific candidates included on the same ballot.
Note that what you're doing is considered "lobbying" under federal tax law and, if you're doing much of this, you should consult your legal counsel to ensure that your organization's cumulative activity is within the limits for lobbying activity. It is important to consider the potential "return on investment" of your organization's support of a local bond initiative. A small amount of time spent on a local green space or park initiative may secure a big return of new soccer fields in your community.
Q. OK. We can get more involved in advocacy and even "lobby" our elected officials, but what do you mean by limits?
A. Federal tax law allows 501(c)(3) not-for-profit organizations to lobby within certain limits. Those limits are determined as either a function of your organization's expenditures on lobbying activities or whether lobbying activities rise to the level of a "substantial" part of the organization's activities. There are numerous resources available to help you better understand these limits, including online resources provided by the Center for Lobbying in the Public Interest (http://www.clpi.org) and the aforementioned Alliance for Justice (www.afj.org).
We encourage you to educate yourself by utilizing these resources, and consult your organization's legal counsel before beginning any significant, organized advocacy effort.
Q. What about any state or local laws relating to non-for-profits and political activity?
A. In addition to federal rules, be aware of state requirements that affect your non-for-profit. These rules can vary widely from one locality to the next. Contact your state association of nonprofits and/or the state Attorney General and Secretary of State to learn about the local guidelines and potential reporting requirements in your particular area.
Q. Finally, what about me? Can an individual, who happens to be involved with a local soccer organization, still get involved politically?
A. The answer is absolutely, YES! Individuals who serve on your Board, coaches, parents, even paid staff, who are directly associated with the organization, may participate fully in the political process. However, if they are participating in the political process as an individual, it's important to make sure they're doing so on their own time and they do not attribute their personal views to your organization.
In our next installment of Grassroots Soccer Biz, we'll include specific examples of how you can get more involved and be an advocate for the game – at all levels of government – including ways to successfully present the case that more fields and soccer playing opportunities in your community are, "about much more than (simply) soccer."
Dave Tyahla is the Director of Government Relations for the U.S. Soccer Foundation, Major Charitable Arm of Soccer in the United States. www.ussoccerfoundation.org
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.