CNE Advocacy & Public Policy 3

Question 1

A 501(c)(3) makes the 501(h) election. Under this election, the direct lobbying expenditure ceiling for an organization with $5 million in exempt-purpose expenditures is:

Accepted Answer

$250,000

Answer

Under 501(h), the direct lobbying ceiling is 20% of the first $500,000 of exempt-purpose expenditures, yielding $100,000 for the first tier, with a total cap of $1M; for $5M in expenditures the combined nongrassroots cap is $1,000,000 but the calculation yields $250,000 for the first $500K bracket — the actual ceiling depends on the sliding scale, with the total lobbying cap calculated per IRS table.

Question 2

A nonprofit executive testifies at a public legislative hearing about the impact of proposed budget cuts. This activity is generally classified as:

Accepted Answer

Direct lobbying

Answer

Testifying before a legislative committee about specific legislation is considered direct lobbying under IRS definitions.

Question 3

Which of the following best describes 'issue advocacy' as distinct from lobbying?

Accepted Answer

Educating the public about a policy issue without calling for a specific legislative action

Answer

Issue advocacy raises awareness and educates about policy topics without expressly urging support or opposition to specific legislation.

Question 4

A 501(c)(4) social welfare organization is often used alongside a 501(c)(3) in an advocacy structure because the 501(c)(4) can:

Accepted Answer

Engage in unlimited lobbying as its primary activity

Answer

501(c)(4) organizations may engage in lobbying as their primary activity as long as they operate for community benefit, unlike the substantial-part restriction on 501(c)(3)s.

Question 5

An effective power-mapping exercise in advocacy helps a nonprofit identify:

Accepted Answer

Key decision-makers, their influencers, and the relationships between them

Answer

Power mapping visualizes who holds decision-making authority and who can influence them, guiding advocacy strategy.

(CNE) Certified Nonprofit Executive Practice Test

(CNE) Certified Nonprofit Executive Practice Test

CNE Advocacy & Public Policy 3