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 is a Nonprofit Advocacy and Public Policy Compliance Audit?
A Nonprofit Advocacy and Public Policy Compliance Audit is a standardized inspection form used by executive director / policy director to ensure consistent nonprofit operations. It contains 34 inspection points organized into 6 sections. FREE nonprofit advocacy compliance checklist PDF. Annual advocacy and public policy compliance audit covering 501(c)(3) lobbying limits, 501(h) election status, grassroots vs direct lobbying tracking, prohibited political activity, and state lobbying registration for advocacy-focused nonprofits. Download FREE template now.
How often should I use this nonprofit checklist?
This checklist is designed to be completed annually. Regular use ensures compliance with industry standards and helps identify issues before they become problems.
Can I download this Nonprofit Advocacy and Public Policy Compliance Audit as a PDF?
Yes, you can download this checklist as a FREE PDF for printing or offline use. The checklist includes 34 fields across 6 sections and typically takes 3 hours to complete.
What compliance standards does this checklist cover?
This checklist follows industry best practices for nonprofit operations to help maintain quality and safety standards.
How do I complete this nonprofit inspection checklist?
Begin by completing the header fields for Organization Name, Audit Date, Auditor Name, and Total Advocacy/Lobbying Expenditures This Year ($). Work through each of the 6 sections, marking items Yes or No as applicable. Finally, complete the footer fields and add your signature. The entire process takes approximately 3 hours.
What are the key sections in this nonprofit checklist?
This nonprofit checklist is organized into 6 key sections: Political Activity Prohibition, 501(h) Election Status, Lobbying Activity Tracking, State Lobbying Registration, Coalition and Partnership Advocacy, Staff Advocacy Training. Each section contains specific inspection points that executive director / policy director must verify. The structured layout ensures nothing is missed during nonprofit inspections and makes the process efficient, typically taking 3 hours to complete.
Who should use this Nonprofit Advocacy and Public Policy Compliance Audit?
This checklist is primarily designed for executive director / policy director working in nonprofit operations. However, it is also valuable for quality assurance teams, safety officers, compliance managers, and supervisors who need to verify that nonprofit standards are being met. Organizations of all sizes can benefit from using this Nonprofit Advocacy and Public Policy Compliance Audit to maintain consistency and accountability.