As this memorandum demonstrates, existing law prohibits the use of federal funds for lobbying. Moreover, nonprofits in general receiving federal grants in particular, already comply with strict reporting and auditing regulations. There is no need for additional law. The government enforces these limitations by rigorous audit and reporting requirements. In addition, the nonprofit sector is subject to intense scrutiny by the IRS, the press, and the public.
Further regulation is unnecessary and unwise.
For years, the government has looked primarily to nonprofits to provide much-needed services that the government has chosen to fund. In return, the government has benefitted from the experience and expertise of these organizations in understanding community needs and in designing and implementing programs to meet them. By undermining this historic relationship between government and the nonprofit sector, the proposals under consideration risk leaving the most vulnerable in our society underserved. The underlying assumption behind the recent efforts of some Members of Congress to restrict advocacy by nonprofits is that such advocacy is detrimental to a democratic society and should be punished by the withdrawal of federal funds used to support other activities and services. This premise is fundamentally flawed.