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Nonprofits are permitted to engage in lobbying in Georgia, but that activity is regulated at both the federal and state levels. The practical question for most boards and leadership teams is not whether lobbying is allowed, but:

• What counts as lobbying?
• How much lobbying is permitted?
• When do additional compliance obligations apply?

Federal Rules Governing Nonprofit Lobbying

At the federal level, lobbying by nonprofits is primarily regulated by the Internal Revenue Service. The IRS distinguishes between general advocacy and lobbying activity, with lobbying defined as attempts to influence specific legislation.

Not all public policy work qualifies as lobbying. Educational efforts, research, and general issue awareness can fall outside the lobbying definition, even when they relate to public policy. Problems tend to arise when communications reference specific legislation or urge lawmakers or the public to take a particular position on pending bills.

Because classification depends on how an activity is framed, similar efforts can be treated differently under IRS rules.

How the IRS Draws the Line Between Education and Lobbying

Under guidance from the Internal Revenue Service, the distinction between permissible public policy education and lobbying turns on content, audience, and intent, not on the format of the communication.

Educational Communication

It’s typically not considered lobbying if a nonprofit sends an email or mailer to donors or members explaining the effects of a proposition, such as:

“Proposition 200 would increase local funding for public transportation, expand certain municipal authorities, and modify existing zoning requirements.”

Communications, even those relating to ballot measures, are usually treated as non-lobbying education activity if they:

• Describes the measure factually
• Presents its likely effects
• Does not encourage a vote for or against the proposition
• Does not frame the issue in a way that implicitly urges a position

The IRS recognizes that nonprofits may educate the public about policy issues without advocating for a specific outcome.

Grassroots Lobbying

By contrast, it likely will be considered lobbying if an email or mailer says something like:

“Vote YES on Proposition 200 to protect public transit and ensure equitable development in our community,” or “Call your city council member and urge them to oppose the proposed zoning ordinance.”

That type of communication:

• References specific legislation or a ballot measure
• Encourages the audience to take a position or action

When the message is directed to the public rather than lawmakers themselves, it is typically treated as grassroots lobbying, which is subject to specific limits for 501(c)(3) organizations.

Special Limits for 501(c)(3) Organizations

Organizations classified under Section 501(c)(3) face the most restrictive lobbying limits. While some lobbying is allowed, it cannot constitute a “substantial part” of the organization’s overall activities. The IRS evaluates this based on the organization’s operations as a whole rather than a single event.

Some nonprofits elect to measure lobbying under a specific expenditure-based framework, commonly referred to as the 501(h) election. Others operate under the general “substantial part” standard.

Either approach requires ongoing awareness of how lobbying activity compares to the organization’s broader mission and spending.

For most organizations, the risk is not occasional advocacy, but drift. Compliance challenges can arise when cumulative lobbying activity grows without being tracked or reassessed.

How 501(c)(4) Organizations Are Treated Differently

Social welfare organizations organized under Section 501(c)(4) are permitted to engage in significantly more lobbying than 501(c)(3)s. Lobbying may be a primary activity for a (c)(4), though it cannot be the organization’s sole purpose.

These distinctions become important when nonprofits operate affiliated entities, share staff, or allocate resources across multiple organizational structures. Activity that may be permissible for one entity can create compliance issues if attributed to another.

Georgia Registration and Reporting Requirements

Separate from federal tax rules, Georgia law regulates lobbying activity through state registration and reporting requirements. These rules are administered by the Georgia State Ethics Commission.

Georgia law focuses less on whether lobbying is allowed and more on who must register, report, and disclose lobbying activity. In some cases, a nonprofit may comply fully with IRS limits and still trigger state-level obligations based on how lobbying is conducted or who performs it.

This distinction is often overlooked, particularly when staff members engage in policy-related communications as part of their broader roles.

Tracking Lobbying Time and Expenses

Even when lobbying activity is limited, tracking matters. Time spent on lobbying, related expenses, and the nature of communications should be documented consistently.

For smaller nonprofits, overlapping staff responsibilities and advocacy efforts that are integrated into broader programs can create tracking challenges.

Clear internal tracking practices can help organizations assess their activity accurately and respond confidently to questions from regulators, funders, or auditors.

How Outside Counsel Can Help Clarify Lobbying Boundaries

Nonprofit counsel typically assists by helping organizations classify activities, understand applicable limits, and assess whether registration or reporting obligations apply under federal and Georgia law.

Learn more about advocacy and lobbying limitations by consulting with the nonprofit attorneys at the Law Office of Cameron Hawkins. Call (678) 921-4225 to schedule an appointment.