Updates On Federal Issues Affecting Nonprofits

Dec 10

Chart of Executive Orders

Chart of Executive Orders Affecting Charitable Nonprofits by the National Council of Nonprofits

Federal Funds and Nonprofit Lobbying

On August 28, the President issued a memorandum to the U.S. Attorney General regarding the use of appropriated funds for lobbying and political activity.

Our colleagues from the North Carolina Center for Nonprofits shared the following:

"The memorandum alleges that "the possible use of Federal grants as slush funds for political and legislative advocacy raises serious legal concerns."

President Trump's memorandum appears to misinterpret the relevant federal statute. In fact, federal law does not prohibit nonprofits (or businesses) that receive federal grants, contracts, or cooperative agreements from lobbying. In 1995, a member of Congress tried to get that type of broad prohibition on lobbying enacted into law, but nonprofits were successful in advocating against it. Instead, the statute referenced in that sentence of President Trump's memorandum (often known as the Byrd Amendment) merely prohibits nonprofits and businesses that receive federal grants, contracts, or cooperative agreements from using these federal funds to influence other federal funding decisions. Nothing in federal law prohibits federally-funded nonprofits from policy advocacy at the federal level or from using other revenue sources to lobby Congress or federal agencies for appropriations or for the awarding, renewal, extension, or amendment of a federal grant, contract, or cooperative agreement.

The memorandum directs the Attorney General to report to the President on the results of investigations into lobbying activities by federal grant recipients in 180 days. It is unclear what, if any, enforcement actions federal agencies may attempt to take against nonprofits that receive federal grants and are engaged in lobbying activities."