Lobbying and Electioneering Limitations - WordPress.com

Montclair PTO Compliance Policies and Procedures

Lobbying and Electioneering Limitations POLICY: The lobbying activities of the Montclair PTO are managed to assure compliance with local, state and federal laws regarding influencing government policies and government officials. As a condition of being organized as a U.S. public charity under Section 501(c)(3) of the Internal Revenue Code, no substantial part of the PTO’s activities or expenditures may be attempting to influence legislation, and no part of the PTO’s activities or expenditures may be candidate electioneering. The consequence to the PTO of a violation of this standard is the possible loss of its tax-exempt status. To assure that the PTO does not exceed the standard, volunteers must track and report lobbying activities to the PTO Board. PURPOSE: To assure compliance with applicable laws that govern influencing government policies and government officials, to assure proper use of funding, to protect the PTO’s ability to lobby, and to protect the PTO’s tax-exempt status. RESPONSIBLE PARTY: The Treasurer shall prepare a report on an annual basis detailing any and all lobbying activities, volunteer time, and expenditures. PROCEDURE: No substantial part of the PTO’s activities and/or expenditures may be an attempt to influence legislation. The PTO will strive for 0% of activities and expenditures on lobbying, with any deviations subject to board approval, not to exceed 3%. “Legislation” includes action by a legislative body or the public acting as a legislature on:      

Ballot measures; Constitutional amendments, whether being considered by legislature or electorate; Bills and acts, including legislation that creates or amends programs or appropriates funds; Specific legislative proposals even before they are introduced; Legislative confirmation of executive branch officials, such as cabinet members and judges; Resolutions, even if they are not binding law.

A legislature includes any voting legislative body, state legislatures, local legislative bodies such as county commissions and school boards, and the public where it is acting as a legislature on ballot initiatives or referenda. Under the tax law, attempting to influence legislation (“lobbying”) includes:        

Contact with government officials, including legislators, their staff, other government officials, or a legislative body for the purpose of supporting or opposing legislation; Informing PTO members and/or the public of the PTO’s position on legislation via mailings, emails, flyers, or other communications; Urging PTO members and/or the public to contact decision-makers for the purpose of supporting or opposing legislation; Any communication that is persuasive; Engaging in a public campaign for ballot initiatives; Publications or statements regarding legislation; Rallies, demonstrations, seminars, conventions, speeches, or lectures regarding legislation; Testifying before a legislative body, unless the PTO has been specifically invited to appear;

Revised 11/2/10, Page 1 of 4

Montclair PTO Compliance Policies and Procedures     

Writing a "letter to the editor" which seeks to sway the community in favor of a PTO position; Traveling to the state or national capitol for the specific purpose of changing the mind of a legislator about an issue; Advertising in any media in an attempt to sway the general public to action supporting the PTO position on legislation; The support, preparation, and management of these activities; Any other means of influencing legislation.

Attempting to influence legislation (“lobbying”) does NOT include the following activities:          

Informing members of legislative issues, and the expected local impact of proposed legislation, without a call to action; Researching and conducting non-partisan legislative analysis in an educational manner. State the facts and allow people to draw their own conclusions; Inviting legislators and staff to learn about the PTO; Attending advocacy training workshops; Conducting neutral candidate forums. All candidates appearing on the ballot for a given position must be invited to participate and given equal time to respond; Publishing a candidate’s questionnaire: all candidates must be given the opportunity to answer the questionnaire and responses must be printed exactly as written; Responding to official legislative requests for information or for testimony on PTO positions; Reminding members to vote; Advocacy activities that generally promote children and education, but that do not specifically mention a particular legislative action; Discussion during a PTO meeting of the merits of particular legislation, if all sides are given equal voice;

PROCEDURE: No part of the PTO's activities may involve intervening in any candidate's political campaign on behalf of or in opposition to the candidate for public office or a political party. The prohibition covers all candidate elections at any level of government. Great caution in this area is required. The PTO is prohibited from participating in any political activity related to the election of candidates for any public office. This restriction means that the PTO, and its board members and volunteers who could be perceived as acting on behalf of the organization, are barred from activities that could be reasonably inferred to support, oppose, or express any opinion about the merits of candidates for office at the national, state, or local levels. Examples of prohibited candidate electioneering activities include, but are not limited to:       

Use of PTO intellectual property, including name, logo, email lists and membership lists, in association with any candidate; Distribution or publication of a candidate’s voting record; Responding to questionnaires or press inquiries about a candidate or the candidate’s record or position on issues; Implying or expressing by any means the PTO’s endorsement of any candidate (including school board) or particular political party; Urging PTO members and/or the public to vote for a particular candidate; Electioneering in the school or at PTO events, including the display of a candidate’s materials, such as buttons, shirts or signs, or distributing campaign materials; Use of PTO materials, such as paper, copiers and office supplies in support of the campaign of political parties or candidates;


Montclair PTO Compliance Policies and Procedures      

Providing confidential or non-public information about the PTO to a campaign; Working for a candidate campaign during hours during which you are purportedly volunteering for the PTO; Representing your PTO leadership or membership role in personal campaign work, such as on a name badge at a candidate event or in written or verbal communications, such as the voter’s pamphlet; Endorsing or implying endorsement of the candidacy of anyone affiliated with the PTO who is running for public office; Endorsing or implying endorsement of the candidacy of a current office holder who is supporting PTO activities; Holding candidate debates that imply an organizational bias, or inviting only certain candidates.

Board members, PTO members, and volunteers of the PTO may work for or against candidates for public office as private citizens on their own time, and may donate money to political campaigns as individuals. In any such activity, each must ensure that interested parties understand the individual cannot and does not represent the views of the PTO. Board members, members, and volunteers must ensure that all such individual activity is performed on their own time, using their own materials, and does not involve the PTO in any way. Providing any kind of support to someone who is seeking public office will violate the prohibition, even if the election is still a year away. Under the federal tax law, ballot initiatives and referenda are treated as legislation. Efforts to influence these decisions are analyzed under the IRS rules regarding “influencing legislation”, rather than under the strict candidate campaign prohibition. Nonetheless, because initiatives and referenda, by definition, are actions that take place on Election Day, be certain the PTO’s work on a particular ballot campaign is not perceived as supporting or opposing a candidate who is standing for election at the same time.

The prohibition against candidate electioneering with PTO resources is absolute.


Montclair PTO Compliance Policies and Procedures

Financial Management POLICY: The Montclair PTO will retain necessary financial records in perpetuity, if practical, or for no less than seven years, and will destroy records in an appropriate manner. The Treasurer is responsible for overall fiscal control, including cash receipting and processing functions. PURPOSE: To ensure PTO records are retained and destroyed in accordance with all applicable laws and regulations and the organizational needs of the PTO. To ensure that PTO funds are properly managed, meet financial audit requirements, and are safely and securely deposited to PTO accounts. To ensure compliance with IRS regulations governing contributions made to non-profit organizations. To ensure that all donors are thanked for their gifts and provided with documentation to support the tax deductibility of their gifts to the PTO. RESPONSIBLE PARTY: Treasurer PROCEDURES:       

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Cash receipts of all types (cash, checks, credit cards, etc.) must be handled and deposited in a secure and timely manner; Event managers must reconcile payments and provide checks and cash to the Treasurer as soon as possible, preferably within 48 hours of receiving payment. Checks and cash may not be retained by the event manager for any reason; The Treasurer must deposit checks and cash in the bank as soon as possible, preferably within 24 hours of receiving payment; Funds of any kind may not be placed unattended in the Treasurer’s school mailbox. Any cash or check must be given directly to the school secretary and locked securely until the Treasurer personally collects it; The Treasurer may not receive cash (such as after an event) without it first having been counted by an authorized PTO volunteer and documented in writing by a second authorized PTO witness; Contributions must be processed according to donor intent; Acknowledgment and Substantiation: The IRS requires that donors have certain records and acknowledgments from the PTO to establish that they have, in fact, made tax deductible charitable contributions. All donations $100 or over with a known source (donor name and address) will be acknowledged once, in writing, in a timely manner. The acknowledgment will include a formal statement of the tax-deductibility of the donation, if applicable. Disclosure: The PTO must disclose the value of any goods or services provided to a donor in exchange for or as a result of a donation. This Disclosure must include (1) a description of any goods or services provided to the donor in exchange for or as a result of the contribution, (2) a good faith estimate of the value of the goods or services provided to the donor, and (3) notification to the donor that the amount of the contribution that is deductible for federal income tax purposes is limited to the value of the donation in excess of the value of the goods or services provided by the PTO. Thank yous: A "Thank you" is not required by IRS regulations but is an essential component of donor stewardship. The PTO President is encouraged to thank all donors of $100 or over. Thank you notes or messages do not include Acknowledgment, Substantiation, or Disclosure. For example, the PTO President sends an email to a parent who made a significant donation, thanking them for the gift, but does not include tax language in the note.
