Nonprofit Advocacy and Public Policy Compliance Audit
Nonprofits can and should engage in advocacy, but must carefully navigate the rules distinguishing permitted advocacy from prohibited political activity and regulated lobbying. This annual audit ensures advocacy activities stay within legal limits.
- Industry: Nonprofit
- Frequency: Annually
- Estimated Time: 3 hours
- Role: Executive Director / Policy Director
- Total Items: 26
Political Activity Prohibition
Verify absolute prohibition on political activity.
- Organization made no endorsements or statements supporting or opposing candidates?
- No organizational funds contributed to political campaigns?
- Any voter guides or candidate comparisons were non-partisan and balanced?
- Staff political activity clearly in personal capacity, not organizational?
- All communications during election season reviewed for political activity risk?
501(h) Election Status
Verify lobbying election and calculations.
- IRS Form 5768 (501(h) election) filed to use expenditure test?
- Lobbying expenditures within 20% of exempt purpose expenditures ceiling?
- Direct lobbying distinguished from grassroots lobbying in expenditure tracking?
- Grassroots lobbying within 25% of total lobbying ceiling?
Lobbying Activity Tracking
Track lobbying activities.
- All lobbying activities (legislative testimony, direct legislator contact, grassroots calls to action) logged?
- Staff time spent on lobbying activities tracked and allocated?
- Direct lobbying expenses (travel, materials, events) tracked separately?
- Data ready for Form 990 Schedule C lobbying reporting?
State Lobbying Registration
Verify state lobbying compliance.
- State lobbyist registration filed in all states where organization lobbies?
- State registration thresholds (vary by state) monitored?
- Periodic state lobbying reports filed per state requirements?
- State ethics rules for lobbyist conduct reviewed?
Coalition and Partnership Advocacy
Manage coalition advocacy compliance.
- Positions taken by coalitions the organization participates in reviewed for compliance?
- Sign-on letters and joint advocacy statements reviewed before signing?
- Coalition dues allocated between lobbying and non-lobbying portions?
- Fiscal sponsorship of advocacy projects reviewed for 501(c)(3) compliance?
Staff Advocacy Training
Train staff on advocacy compliance.
- All advocacy-involved staff trained on political activity prohibition?
- Staff trained on difference between permitted education/advocacy and regulated lobbying?
- Social media advocacy guidelines communicated to staff?
- Legal counsel reviewed advocacy compliance program within last 2 years?
- Form 990 Schedule C reviewed by ED and counsel before filing?
Related Nonprofit Checklists
- Nonprofit Strategic Plan Development and Implementation
- Nonprofit Board Member Recruitment and Onboarding Checklist
- Nonprofit Organizational Capacity Building and Strategic Planning
- Nonprofit Executive Director Annual Performance Evaluation
- Nonprofit Fundraising Ethics and Donor Rights Compliance
- Nonprofit Financial Policy Annual Review and Update
- Nonprofit Investment and Endowment Management Review
- Nonprofit Accounts Payable and Disbursement Controls
Related Governance Compliance Checklists
- Nonprofit Board Meeting Preparation Checklist - FREE Download
- Nonprofit Bylaws Annual Review and Compliance Audit - FREE Download
- IRS Form 990 Annual Filing Preparation Checklist - FREE Download
- State Charitable Registration and Renewal Compliance Checklist - FREE Download
- Nonprofit Executive Director Annual Performance Review - FREE Download
- Nonprofit Annual Conflict of Interest Disclosure Process - FREE Download
- New Nonprofit Board Member Orientation Checklist - FREE Download
- Nonprofit Board Governance Self-Assessment - FREE Download
- Nonprofit Whistleblower Policy Compliance and Implementation Review - FREE Download
- Nonprofit Annual Reporting and Compliance Calendar Audit - FREE Download
Why Use This Nonprofit Advocacy and Public Policy Compliance Audit?
This nonprofit advocacy and public policy compliance audit helps nonprofit teams maintain compliance and operational excellence. Designed for executive director / policy director professionals, this checklist covers 26 critical inspection points across 6 sections. Recommended frequency: annually.
Frequently Asked Questions
What does the Nonprofit Advocacy and Public Policy Compliance Audit cover?
This checklist covers 26 inspection items across 6 sections: Political Activity Prohibition, 501(h) Election Status, Lobbying Activity Tracking, State Lobbying Registration, Coalition and Partnership Advocacy, Staff Advocacy Training. It is designed for nonprofit operations and compliance.
How often should this checklist be completed?
This checklist should be completed annually. Each completion takes approximately 3 hours.
Who should use this Nonprofit Advocacy and Public Policy Compliance Audit?
This checklist is designed for Executive Director / Policy Director professionals in the nonprofit industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.
Can I download this checklist as a PDF?
Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.