3. Track Your Lobbying Expenditures
There are a number of different expenditures that need to be tracked as part of the IRS guidelines. These include compensation of employees and vendors, costs associated with communicating with elected officials (i.e. travel expenses and payments to other organizations to lobby on your behalf). You should track not only actual time spent conducting lobbying activities but also any time spent in preparation to lobby (e.g., prep meetings and time spent drafting communications).
It is also important to make sure each employee is tracking their direct and grassroots lobbying for reporting purposes.
4. Be Clear on Lobbying Rules under Federal, State, and Local Laws.
IRS reporting requirements are separate from state or local reporting requirements.
Many states, counties, and cities have very detailed rules and regulations regarding what constitutes lobbying and when individuals/orgs must register. So check your local rules when building out an advocacy action plan. This information is often on Secretary of State websites or city/county websites.
Keep in mind that the purpose of many state or local laws is to provide transparency regarding who is influencing lawmakers’ decisions—so there may be rigorous reporting requirements that require quarterly filings. State and local lobbying registrations are often publicly accessible and frequently very detailed.
Also note that no uniform registration requirements/thresholds exist. Typically, registration is required after a certain amount of money OR a percentage of an employee’s time is spent on lobbying activities in a particular jurisdiction.
