Most nonprofits do not need to register as lobbyists at the federal level, but 990-reporting requirements may apply for time and expenses spent on lobbying. Stakeholders may learn more about IRS lobbying rules through Forefront’s educational events (see above and see event calendar) and through partner resources including:

• Bolder Advocacy’s Federal Lobbying Thresholds and Understanding the Lobbying Disclosure Act
• Bolder Advocacy’s Lobbying Flowchart
• National Council of Nonprofits’ Proof That Nonprofit Advocacy is Legal
• Staying Nonpartisan: Permissible Election Activities Checklist for Nonprofits
• United Philanthropy Forum’s What, Why, and How of Advocacy

Note About Executive Orders:  Critiquing executive orders that conflict with your organization’s mission does not violate rules requiring 501(c)(3) nonprofits to remain nonpartisan. While 501c3w cannot support or oppose candidates for office, executive orders are issued by the President, who is no longer a candidate once in office. 501c3s may support or oppose the President’s executive actions and other actions taken by a President’s administration and executive branch agencies. Not only does executive order advocacy not violate rules about nonpartisanship, is also is not considered lobbying under Internal Revenue Code (IRC) rules. In other words, executive order advocacy does not count towards the lobbying limits of 501(c)(3) public charities, and funds that prohibit lobbying can likely be allocated to executive branch advocacy. This includes asking members of Congress to speak out against executive action.

• Bolder Advocacy Brief on Administrative Advocacy
• Alliance for Justice on How to Fight Back Against Executive Orders

Some nonprofits register as lobbying entities, and some nonprofit employees register as exclusive lobbyists, at the state level. When you are advocating for a budget item, revenue solution, program, or issue with state elected officials, agency staff, or local officials, you may be lobbying according to the state’s definition. Illinois has fairly sweeping rules compared to other states, so it is important for nonprofits in Illinois to understand them.

• Website:  Illinois Secretary of State
• Registration:  Due annually; available beginning the first business day of the year. Must be completed before lobbying occurs and within two business days after the lobbyist is employed or retained
• Fees: $300 per lobbying entity + $300 per lobbyist
• Reports:  Due semi-monthly; the first due date is January 20 for the period January 1-15
• Contact:  eLobbyist@ILSOS.GOV
• Rules:  Illinois Administrative Code 2.C.III.560 Lobbyist Registration and Reports

State Registration Requirements

• Who Must Register?  “Any natural person who, for compensation or otherwise, undertakes to lobby, or any person or entity who employs or compensates another person for the purposes of lobbying, shall register with the Secretary of State.” Thus, individuals (and their employer) that meet the definition of “lobbyist” or “lobbying entity” because they “lobby” a “covered” state or local official (see list of covered officials, below) must register with the Secretary of State every year, even if lobbying is a small portion of their job. The state’s definition of lobbying includes “soliciting of others to communicate” with the ultimate purpose of influencing executive, legislative, or administrative action at the state, municipal, county, or township level (aka, issuing a grassroots communication and hosting a grassroots event). Annual registration includes simple, online ethics and sexual harassment training modules, which must be complete before any lobbying occurs and within two business days after the lobbyist is employed or retained. There is no grace period for registration or training.
• What About Consultants?  Consultant compensation is included in the definition of reportable compensation under the Lobbyist Registration Act (see definitions chart). Thus, nonprofit organizations that retain a consultant(s) may need to disclose the consultant’s services and expenditures on IL SOS lobbying reports within two days of retaining the consultant. The nonprofit lobbying entity must identify whether the consultant provides services for administrative, executive, and legislative branch agencies. Reportable expenses include expenses by an employee of the consultant if applicable. Consultants should report expenses to the lobbying entity for inclusion in the lobbying entity’s semi-monthly expenditure report to the state.
• Are There Any Exemptions?  There are no wholesale exemptions to registration for nonprofits in Illinois, but several limited-scenario exceptions exist in the Illinois Administrative Code. for example, simply responding to a grassroots communication or attending a grassroots event does not alone require lobbyist registration. Additionally, the definition of “soliciting others to communicate” specifically exempts “the making of a grant” by a 501(c)3 as well as “communication … to the public or a segment thereof or to its members….” by a 501(c)3 or 501(c)6 that is not a call to action on related legislation. For example, publishing an analysis of proposed registration, without asking readers to call their legislator, is not considered a lobbying activity. 501(c)4s are NOT exempted from any of these provisions. A consultant is not required to register as a lobbyist for providing advisory services. However, if in the course of providing services as a consultant, the consultant makes a lobbying contact with a covered official, or makes an item of expenditure on behalf of or benefiting a covered official, the consultant will be required to register as a lobbyist.

State “Covered” Officials and Agencies

Covered state officials include:

• Members of the Illinois General Assembly
• Governor/Deputy Governor
• Secretary of State/Deputy Secretary of State
• Attorney General/Deputy Attorney General
• Treasurer/Deputy Treasurer, and
• Comptroller/Deputy Comptroller.

Even if  do not lobby the State government, if you lobby at the local level, you must register as a lobbyist with the State. Many nonprofits communicate regularly with their local, township, and county governments (e.g., regarding joint programming and grant contracts), so this is a uniquely important rule for the nonprofit sector. Covered local officials include:

• Mayors, presidents, aldermen, commissioners and trustees of any city, village or town except the City of Chicago, which has it’s own lobbyist registration system (see below)
• County board members and countywide elected officials
• Township board members and township elected officials; and
• Members of any board, commission, authority, or task force, that has the authority to make binding recommendations or determinations, created by a local ordinance or order of a mayor, or village or town president.

Key State Definitions 

In 2022, the state amended the Lobbyist Registration Act. The table below summarizes how definitions changed pursuant to that law. Current definitions are visible in the right column.

• Website: City of Chicago Board of Ethics
• Registration:  Due annually by January 20th or within 5 days of first engaging in lobbying activity
• Fees: $350 per person + $75 per client (if applicable); Fees are waived for 501(c)3s that can provide required documentation
• Reports:  Due quarterly on January 20, April 20, July 20, and October 20
• Contact: 312.744.9660
• Summary of Chicago Registration and Reporting Requirements

The State’s Illinois Governmental Ethics Act and the Lobbyist Registration Act grant a unique exception to municipalities with a population over 500,000, which at this time only applies to the City of Chicago. Thus, Chicago manages its own lobbyist registration and reporting system for those who lobby the City of Chicago.

• Who Must Register?  Regardless of where your nonprofit is physically located, if you engage in lobbying activities with the City of Chicago as defined by the City, you should register on the City of Chicago Board of Ethics website.
• Are There Exceptions?  Yes.  Chicago specifically exempts small nonprofits, those whose lobbying activities do not exceed certain time and expense threshold, volunteers, grant administration and other activities from registration requirements. For examples about what does and does not constitute lobbying according to the City, see opinions 19037.A.1-3, 20003.A, and 20009.A on the list of Advisory Opinions.

Most nonprofits do not need to register at the federal level. At the state and local level, the chart below summarizes who should register, where:

Questions?

Contact publicpolicy@myforefront.org.