CNE Advocacy & Public Policy 2 — Questions and Answers
Question 1: A nonprofit wants to influence federal agency rulemaking. Which mechanism allows the public, including nonprofits, to formally submit comments on proposed regulations?
- Lobbying disclosure report
- Notice-and-comment rulemaking under the APA (Correct answer)
- Congressional testimony
- Executive order petition
Correct answer: Notice-and-comment rulemaking under the APA
The Administrative Procedure Act (APA) requires federal agencies to publish proposed rules and accept public comments before finalizing them.
Question 2: Under IRS rules, a 501(c)(3) organization that engages in substantial lobbying risks which consequence?
- Loss of tax-exempt status (Correct answer)
- A 10% excise tax on lobbying expenditures only
- Mandatory conversion to 501(c)(4)
- Automatic IRS audit
Correct answer: Loss of tax-exempt status
Substantial lobbying by a 501(c)(3) can result in revocation of its tax-exempt status.
Question 3: A nonprofit advocacy coalition wants to elect a new board chair who supports their legislative agenda. Which action is permissible?
- Endorsing the candidate in an official capacity
- Hosting a candidate forum open to all candidates equally (Correct answer)
- Making a financial contribution from operating funds
- Distributing campaign literature for the candidate
Correct answer: Hosting a candidate forum open to all candidates equally
Hosting a nonpartisan candidate forum open equally to all candidates is a permitted educational activity for 501(c)(3)s.
Question 4: Which lobbying strategy involves mobilizing an organization's members, donors, or constituents to contact their legislators directly?
- Direct lobbying
- Grassroots lobbying (Correct answer)
- Coalition lobbying
- Insider lobbying
Correct answer: Grassroots lobbying
Grassroots lobbying urges the public to contact legislators in support of or opposition to specific legislation.
Question 5: A state law requires nonprofit lobbyists to register within 15 days of first lobbying contact. A nonprofit's executive director meets with a legislator about a pending bill. What should happen next?
- Register only if compensation exceeds $5,000
- Register within 15 days as required by state law (Correct answer)
- File only at the end of the legislative session
- Rely on the 501(h) election exemption from state registration
Correct answer: Register within 15 days as required by state law
State lobbyist registration laws apply independently of federal tax rules and must be followed upon triggering activity.
Question 6: What is the primary purpose of a nonprofit's 'theory of change' in an advocacy campaign?
- Satisfying grant reporting requirements
- Articulating how specific activities will lead to desired policy outcomes (Correct answer)
- Tracking lobbying expenditures for IRS Form 990
- Recruiting volunteer advocates
Correct answer: Articulating how specific activities will lead to desired policy outcomes
A theory of change maps the logic from advocacy activities through intermediate outcomes to the ultimate policy change sought.
Question 7: Which document is typically used to succinctly communicate a nonprofit's legislative priorities to policymakers in a one- or two-page format?
- Form 990
- Policy brief or one-pager (Correct answer)
- Lobbying disclosure report
- Strategic plan
Correct answer: Policy brief or one-pager
A policy brief or one-pager distills a nonprofit's position, evidence, and ask into a concise format suitable for busy legislators.
CNE Advocacy & Public Policy 2
A nonprofit wants to influence federal agency rulemaking.
Which mechanism allows the public, including nonprofits, to formally submit comments on proposed regulations?