Trade associations and business leagues that are tax-exempt under Internal Revenue Code Section 501(c)(6) are allowed unlimited lobbying..  In fact, many of these organizations have a significant amount of legislative and executive advocacy activities and expenditures.  However, trade associates and business leagues must follow certain IRS rules and regulations. 

Grassroots advocacy campaigns are built from groups of concerned individuals coming together to achieve a common goal. While successful advocacy movements rely on each and every supporter, campaigns don’t just spontaneously come together. Instead, they are guided by a strong advocacy leadership team. 

On March 11, 2021, the U.S. Department of Labor (DOL) announced its proposed withdrawal of its previous rule[1] for evaluating an individual’s independent contractor status (“Final Rule”). The Final Rule was officially withdrawn as explained in the Federal Register on May 6, 2021.[2] The DOL’s stated reasoning for issuing the withdrawal is because the Final Rule would “significantly weaken protections afforded to American workers under the Fair Labor Standards Act [(FLSA)].” For employers, including not-for-profit organizations, the withdrawal creates uncertainty for classifying an independent contractor and the factors that the DOL or a court will evaluate to determine whether the classification is appropriate.