A flurry of recent advisory opinions from the Department of Justice’s FARA unit raise new questions about how the Foreign Agents Registration Act (FARA) might apply to the nonprofit community. Adding to the uncertainty, these opinions arrive just as momentum is increasing for DOJ to adopt new regulations to clarify and update the pre-World War II law that has seen aggressive enforcement in the last decade.

FARA generally requires agents of foreign principals engaged in certain activities within the United States to influence domestic and foreign policy to register and publicly disclose the relationship and their activities to DOJ. In the last few years, enforcement has ramped up, with multiple indictments in the wake of investigations into foreign interference in the 2016 elections. As a result, organizations with international connections have called for greater guidance on the reach of what is a notoriously vague law. To this end, DOJ began releasing heavily redacted advisory opinions interpreting FARA and its regulations.

A common theme among opinions released in February 2022 is the scope of the so-called academic exemption, one of several exemptions to the law’s registration and reporting requirements. Under this exemption, an agent working on behalf of any kind of foreign principal need not register under FARA if the activity performed on behalf of the principal promotes bona fide religious, scholastic, academic, or scientific pursuits or the fine arts. Nonprofits, including universities and other educational organizations, religious groups, and other charitable organizations, have long relied on this exemption when engaging in activities that may cause them to be considered an “agent” of a foreign entity.Continue Reading New FARA Advisory Opinions Put Nonprofits on Notice

The Foreign Agent Registration Act (FARA) continues to get attention as the Department of Justice (DOJ) issues more advisory opinions. FARA is the U.S. statute that requires a person to register with the Department of Justice when engaged on behalf of a foreign principal in certain registrable activities aimed at influencing U.S. public opinion, policy,

As federal and state governments grapple with the health and economic implications of the coronavirus pandemic, business leaders are at the center of the discussion. The White House holds frequent roundtables with CEOs and business owners. State governors have formed task forces comprised of business leaders to advise on strategies for reopening businesses in their

Federal and state regulators continue to modify their lobbying and campaign finance reporting and enforcement practices and requirements in response to the ongoing upheaval caused by the COVID-19 pandemic.

As states postpone primaries to prevent the spread of coronavirus, agencies have revised reporting deadlines for election-sensitive campaign finance reports. The Federal Election Commission (FEC) announced

As the impact of the coronavirus (COVID-19) is felt around the country, states and cities are welcoming help from the private sector, including donations of medical supplies and equipment, professional services, and the use of real property. To facilitate this support, some jurisdictions have loosened or clarified their ethics laws to facilitate these “gifts” to

In response to the coronavirus pandemic, some state agencies are pushing back filing deadlines for lobbying and pay-to-play reports, while others are suspending their legislative sessions, which has the effect of extending in-session reporting requirements and contribution bans.

New Jersey has announced a grace period for government contractors to file annual reports (Form BE) disclosing

We may still be a year out from the next general election, but until the polls close on Tuesday, November 3, 2020, politics will be inescapably in the air—and in the workplace. Employees will be talking, sometimes arguing, and sometimes participating in one campaign or another. Prudent nonprofits should take note of what they may be required to do or are prohibited from doing about their employees’ desire to participate in the electoral process.

The Workplace Is Not a “Free Country.” Let’s start with the basics: the First Amendment does not apply to the private workplace. The Constitution does not prevent private employers from restricting their employees’ political speech. Nonprofits generally can restrict employees’ speech during work time and on work equipment, especially if the organization has a legitimate, business-related reason to do so.

Your Tax-Exempt Status. Nonprofits that are tax-exempt under Section 501(c)(3) may not themselves engage in any political campaign activity (i.e., activity to support or oppose candidates for elective office). The IRS has said that individuals who work for 501(c)(3)s generally maintain their right to engage in political campaign activity, but they have to do so in a way that does not implicate their employer. For example, employees—particularly senior employees—must be careful when endorsing candidates or making other political statements so that it does not appear the organization is endorsing the candidate. The IRS has said that communications should include a clear disclaimer that “titles and affiliations of each individual are provided for identification purposes only” when a nonprofit leader’s name and position are included. Employees also should not make endorsements during nonprofit meetings and events.

For 501(c)(4), (5), and (6) organizations, which are allowed to engage in some political campaign activity, what an employee does or says on his or her own time is not likely to threaten your tax-exempt status.Continue Reading Election-Year Tips for Nonprofits: Employee Participation in the Political Process

A little-noticed provision tucked away in the recently enacted Tax Cuts and Jobs Act (TJCA) will have an effect on businesses that lobby at the local level. Under the TJCA, expenses incurred in connection with attempting to influence legislation at the local or municipal level (including Indian tribal governments) will no longer be deductible.

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With an election year just weeks away, there are steps you can take now to boost the effectiveness of your government affairs program, and help your organization and its principals avoid legal trouble. This is a particularly good time to fill the coffers of your PAC, develop a political contribution plan for next year,

The rise of politically-active nonprofits – deemed “dark money” groups by their critics – has been a hot-button issue in the last few election cycles. Election laws generally do not require groups operating under section 501(c)(4) of the tax code, commonly referred to as social welfare organizations, to register as political committees or disclose their