Nonprofits that get federal funds through categorical grants, contracts or cooperative agreements, whether directly or through an intermediary are subject to restrictions on use of federal funds for lobbying. Only private, non-federal dollars can be spent for direct or grassroots lobbying. The definition of what counts as direct or grassroots lobbying for federal grant purposes is in OMB Circular A-122. The Preamble to Circular A-122, published April 27, 1984, offers guidance on how OMB will interpret the definition of grassroots lobbying.

Note:The amount of legislative lobbying charitable and religious organizations can do is limited under Internal Revenue Service (IRS) rules. The IRS definitions are somewhat different from the definition in Circular A-122.

OMB Circular A-122 Definition of Grassroots Lobbying

Attempts to influence the federal or state legislation by preparing, distributing, or using “publicity or propaganda,” or by asking the general public (or a segment of the public) to contribute to or participate in public events, such as demonstrations or rallies or lobby campaign efforts such as letter writing or telephone banks. A-122, Attachment B.25(a)(4)

Guidance from Preamble to OMB Circular A-122

The Preamble to Circular A-122, published April 27, 1984, is not binding on nonprofit federal grantees, but offers guidance on how OMB will interpret the definition of grassroots lobbying.

"Section a(4) deals with grass roots lobbying, and is applicable only to grass roots campaigns concerning legislation. Similar provisions are found in many appropriations riders and have been interpreted and applied by GAO on many occasions. The definition of grassroots lobbying is section a(4), however, is less inclusive than that of the Internal Revenue Code. It is limited to efforts to obtain concerted actions on the part of the public and, unlike the Code, it does not include attempts "to affect the opinions of the general public", if such attempts are not intended or designed in such fashion as to have the reasonably foreseeable consequence of leading to concerted action. 26 U.S.C. 4911(d)(1)(A). The narrower reach of this section is consistent with the GAO's interpretation of the prohibitions in the appropriations riders on the use of funds for "publicity and propaganda.". See, e.g., Comp. Gen. Op. B-202975 (Nov.3, 1981).

OMB Watch 8/06