Navigating political engagement as a nonprofit can be tricky. While advocacy plays an essential role in advancing missions, crossing the line into prohibited political activity or unregistered lobbying can jeopardize your organization’s tax-exempt status and reputation.

If your nonprofit is speaking out on policy issues, mobilizing voters, or funding advocacy efforts, here are five warning signs that it’s time to get political compliance help.

1. You’re Urging Lawmakers to Pass or Defeat Specific Legislation

Suppose your nonprofit asks supporters to “contact your senator about Bill XYZ” or directly communicates with legislators to influence a specific piece of legislation. In that case, you are engaging in lobbying as defined by the IRS.

501(c)(3) public charities may lobby within certain limits. Still, excessive lobbying can result in excise taxes or even risk the loss of tax-exempt status.

To stay compliant:

• Track all time and expenses spent on lobbying.
• Consider filing Form 5768 to elect the 501(h) expenditure test, which provides clear dollar limits on lobbying spending.

2. You’re Running Ads or Social Media Campaigns Mentioning Candidates

Any communication that expressly advocates for or against a clearly identified political candidate — or is coordinated with a campaign — can violate federal campaign finance laws.

Even issue-based ads can raise compliance risks if they appear close to an election or use the names or images of candidates.

To stay compliant:

• Keep a firewall between your advocacy team and any campaign staff.
• Avoid using phrases like “Vote for” or “Defeat.”
• Consult counsel before running any ad that references an election or a candidate.

3. You’re Using Organizational Resources for Political Campaigns

Using your nonprofit’s email lists, funds, staff time, or office space to support or oppose candidates is strictly prohibited for 501(c)(3) organizations.

Even informal endorsements — such as reposting a candidate’s campaign content from an official nonprofit account — can constitute political campaign intervention under IRS rules.

To stay compliant:

• Maintain a written policy banning the use of organizational resources for partisan activity.
• Train employees and volunteers regularly.

If your organization wants to engage politically, consider forming a separate 501(c)(4) or Political Action Committee (PAC).

4. You’re Lobbying in Multiple States Without Registering

Lobbying disclosure laws differ by state, and many require registration once you spend a small amount of money or time contacting state or local officials.

Failing to register as a lobbyist when required can result in civil penalties and public enforcement actions.

To stay compliant:

• Review each state’s lobbying registration and reporting requirements before you begin outreach.
• Use a centralized compliance tracking system for multi-state advocacy efforts.

5. You’re Outsourcing Advocacy to Consultants or Coalitions Without Oversight

Many nonprofits rely on external consultants, public affairs firms, or coalitions to conduct advocacy. However, outsourced work can still create compliance risks if the vendor’s activities become coordinated with a campaign or violate lobbying disclosure laws.

To stay compliant:

• Include compliance and non-coordination clauses in vendor contracts.
• Vet all third-party firms for past compliance violations.
• Document how you maintain independence from any political campaigns.

Why Political Compliance Matters

Regulators have become increasingly active in monitoring nonprofit political activity. The IRS, Federal Election Commission (FEC), and state ethics commissions can all investigate potential violations.

Even an unintentional misstep can result in fines, loss of tax exemption, or serious reputational harm. Investing in political compliance now helps protect your mission — and your ability to advocate effectively.

Final Thoughts

Advocacy is vital to a nonprofit’s work — but it comes with complex rules.

If you recognize one or more of these warning signs, it’s time to consult compliance counsel or seek training for your staff. The right advice can help your organization stay confident, compliant, and effective in shaping public policy.