SparkWell Lobbying and Advocacy Policy

1. About this policy

1.1. This policy clarifies the distinction between permitted policy advocacy and restricted lobbying activities for Projects sponsored by Anti Entropy through the SparkWell program.

1.2. Anti Entropy is a 501(c)(3) tax-exempt organization. Federal tax law places limits on how much lobbying activity 501(c)(3) organizations may conduct while allowing unlimited policy advocacy and education.

1.3. Projects have substantial freedom to engage in policy advocacy, research, education, and policymaker engagement. This policy helps Projects understand these boundaries to maximize their policy impact while protecting Anti Entropy's tax-exempt status.

1.4. Anti Entropy has made the 501(h) election under Internal Revenue Code Section 501(h), which provides clear dollar-amount limits on lobbying expenditures based on a sliding scale formula. See section 3 for details.

1.5. Project Leads are responsible for understanding and following this policy. When in doubt, consult with your SparkWell Project Liaison before engaging in activities that may constitute lobbying.

2. Key definitions

2.1. Lobbying

2.1.1. Lobbying is the attempt to influence legislation by communicating with legislators or the public about specific legislation. The IRS defines two types of lobbying:

2.1.2. Direct lobbying: Communication with any member or employee of a legislative body, or with any government official who participates in formulating legislation, where the communication refers to specific legislation and reflects a view on that legislation. (26 CFR § 56.4911-2(b)(1))

2.1.3. Grassroots lobbying: Communication with the general public that refers to specific legislation, reflects a view on the legislation, and encourages the recipient to take action (such as contacting legislators). (26 CFR § 56.4911-2(b)(2)).

2.2. Policy advocacy

2.2.1. Policy advocacy includes educational activities, research, public education, and policymaker engagement that do not constitute lobbying under the definitions above. Policy advocacy is unlimited and does not count against Anti Entropy's lobbying restrictions.

2.3. Specific legislation

2.3.1. Specific legislation includes legislation introduced in a legislative body (identified by bill number) and specific legislative proposals that the organization supports or opposes, even if not yet formally introduced. (26 CFR § 56.4911-2(d)(1))

2.3.2. Legislation includes action by Congress, state legislatures, local councils, and the public in referendums, ballot initiatives, or constitutional amendments.

2.3.3. Legislation does not include actions by executive, judicial, or administrative bodies (such as agency regulations, executive orders, or court decisions).

2.4. Political campaign activity

2.4.1. Political campaign activity is absolutely prohibited (26 U.S.C. § 501(c)(3)). Any political campaign activity, no matter how small, can result in immediate loss of tax-exempt status.

2.4.2. Political campaign activity means any activity that supports or opposes candidates for elected public office, including:

• Endorsing or opposing candidates
• Contributing to political campaigns (financially or in-kind)
• Making statements for or against candidates
• Distributing campaign literature
• Hosting candidate events unless all candidates are invited and no campaigning occurs

2.4.3. Political campaign activity is distinct from lobbying. Supporting or opposing candidates is prohibited; supporting or opposing legislation is permitted within limits.

2.4.4. Political campaign activity is prohibited regardless of whether it involves expenditures. Even cost-free activities (like social media posts supporting candidates) are strictly prohibited.

2.5. The 501(h) and lobbying limits

2.5.1. What making the 501(h) election means: By making the 501(h) election, Anti Entropy uses the "expenditure test" to measure lobbying limits rather than the vague "substantial part" test. This provides clear, objective dollar-amount limits based on organizational expenditures.

2.5.2. How lobbying limits are calculated: The lobbying nontaxable amount is calculated using a sliding scale based on Anti Entropy's total exempt purpose expenditures, per 26 U.S.C. § 4911(c)(2):

2.5.3. Grassroots lobbying limit: The grassroots nontaxable amount cannot exceed 25% of the total lobbying nontaxable amount. (26 U.S.C. § 4911(c)(4))

Grassroots lobbying expenditures count toward BOTH the grassroots limit (25% of total lobbying limit) AND the total lobbying limit. This means grassroots lobbying is more restricted than direct lobbying.

Example: If the total lobbying limit is $200,000:

• Grassroots lobbying limit: 200,000)
• Direct lobbying limit: $200,000 total
• If a Project spends $40,000 on grassroots lobbying, they have:
  • 50,000 - $40,000)
  • 200,000 - $40,000)
  • They can spend up to $160,000 more on direct lobbying

2.5.4. Volunteer time: Under the 501(h) election, volunteer time (including time by unpaid board members) does not count as lobbying expenditures. Only paid staff time and other direct costs count toward limits.

2.5.5. Excise tax on excess lobbying: If lobbying expenditures exceed the nontaxable amount in a given year, the organization pays a 25% excise tax on the excess amount. (26 U.S.C. § 4911(a))

2.5.6. Four-year averaging period: Organizations are also evaluated over a four-year period. An organization may lose its tax-exempt status if it exceeds 150% of the four-year sum of lobbying limits. (26 U.S.C. § 501(h)(1))

2.6. How lobbying limits apply to Projects

2.6.1. Each Project must calculate and follow its own lobbying limits as if it were a standalone 501(c)(3) organization, using the sliding scale formula in section 2.5.2 based on the Project's own exempt purpose expenditures.

2.6.2. Projects must track and report all lobbying expenditures to ensure they remain within their individual limits.

2.6.3. Projects must inform Anti Entropy before engaging in lobbying activities. Contact your SparkWell Project Liaison if you intend to begin or have begun any lobbying activities.

2.6.4. Anti Entropy monitors Projects' lobbying activities and will communicate with Projects if adjustments are needed.

3. What Projects can do (advocacy)

3.1. Research and publications

3.1.1. Projects may conduct and publish research on policy issues, including research that reaches conclusions about what policies would be most effective.

3.1.2. Publications may discuss legislation and express views on policy solutions, as long as the work provides a full and fair exposition of the facts, enabling readers to form independent conclusions (the "nonpartisan analysis" exception). (26 CFR § 56.4911-2(c)(1))

3.1.3. Projects may publish policy recommendations, white papers, research reports, and technical analyses without restriction.

3.2. Educational activities

3.2.1. Projects may conduct educational workshops, convenings, training sessions, and public events on policy issues.

3.2.2. Educational meetings with policymakers and staff to discuss research findings and policy options are unlimited as long as they do not urge action on specific pending legislation.

3.2.3. Projects may develop and distribute educational materials about policy problems and potential solutions.

3.3. Policymaker engagement

3.3.1. Projects may brief policymakers and their staff on research findings, technical information, and policy options without reference to specific legislation.

3.3.2. Projects may provide expert testimony in response to formal written requests from legislative committees. Such testimony is fully exempt from lobbying restrictions, even when it expresses views on specific legislation (the "technical advice exception"). (26 CFR § 56.4911-2(c)(3))

3.3.3. Projects may respond to requests for information from government officials and provide technical assistance.

3.4. Executive and administrative branch engagement

3.4.1. All communications with executive agencies, administrative bodies, and judicial bodies about regulations, implementation, and policy are unlimited and do NOT constitute lobbying under IRS rules. (26 CFR § 56.4911-2(d)(3))

3.4.2. Projects may advocate for administrative action, comment on proposed regulations, and meet with agency staff without restriction.

3.5. Public education and awareness

3.5.1. Projects may engage in public education campaigns, media engagement, and social media advocacy about policy issues.

3.5.2. Projects may take strong positions on policy issues and advocate for broad policy solutions without restriction.

4. What Projects cannot do or must limit and track (lobbying)

4.1. Direct lobbying activities

4.1.1. Direct lobbying includes:

• Contacting legislators or their staff to urge support or opposition to specific legislation
• Meeting with legislative staff where the principal purpose is to influence specific pending bills
• Testifying at hearings (unless responding to a formal written committee request, which is exempt)
• Sending letters, emails, or other communications to policymakers about specific bills expressing a view and urging action

4.2. Grassroots lobbying activities

4.2.1. Public communications (including social media, website, newsletters, or other channels) that:

• Refer to specific legislation,
• Reflect a view on that legislation, and
• Include a call to action encouraging the public to contact legislators

4.2.2. All three elements must be present for grassroots lobbying to occur. Educational content about policy issues or specific bills, without a call to action, is not grassroots lobbying.

4.3. Coalition activities

4.3.1. Signing onto coalition letters to legislators about specific legislation counts as direct lobbying.

4.3.2. Time spent in coalition meetings discussing legislative strategy, drafting sign-on letters, or coordinating lobbying must be tracked as lobbying expenditures.

4.4. Political campaign activity (absolutely prohibited)

4.4.1. Projects may NOT engage in any political campaign activity under any circumstances. This prohibition is absolute and applies regardless of cost.

4.4.2. Prohibited activities include but are not limited to:

• Endorsing or opposing candidates for public office
• Making contributions to political campaigns
• Posting, retweeting, liking, or sharing content from political candidates or campaigns
• Distributing campaign literature
• Making statements for or against candidates
• Hosting events for candidates where campaigning occurs

4.4.3. Projects may discuss policy issues that divide candidates as long as the content does not identify candidates or appear timed to influence elections.

4.4.4. Supporting or opposing ballot measures is lobbying (permitted within limits), not political campaign activity, even though the public votes on them.

5. Annual lobbying expenditure reporting

5.1. Report template: Projects must use the Annual Lobbying Expenditure Report template unless otherwise approved by Anti Entropy. Contact your SparkWell Project Liaison for a copy of the template and instructions.

5.2. What to track: Projects must track:

• Employee time spent on direct lobbying and grassroots lobbying
• Contractor costs for lobbying activities
• Other lobbying-related expenses (events, advertising, coalition fees, etc.)
• Total Project expenditures for the year (for calculating organizational limits)

5.3. Submission deadline: Monthly reports are due by the 10th of the following month (e.g., November lobbying activities reported by December 10) and will be reviewed during the monthly check-in meeting.

5.4. Project Lead responsibility: The Project Lead is responsible for ensuring accurate and timely submission of the Annual Lobbying Expenditure Report.

5.5. Anti Entropy reporting: Lobbying expenditures are reported on Anti Entropy's annual Form 990.

6. Gray areas requiring consultation

6.1. When to consult with SparkWell before proceeding

6.1.1. Contact your Project Liaison before:

• Engaging in any activity that combines discussion of specific pending legislation with advocacy for a particular position
• Launching public campaigns that may include calls to action related to legislation
• Signing onto coalition letters or joint statements about specific bills
• Publishing policy recommendations that may be tied to specific legislative proposals
• Providing testimony at legislative hearings (unless clearly responding to a formal written committee request)

6.2. Policy recommendations and model legislation

6.2.1. Publishing detailed policy recommendations or model legislation is generally permitted if presented as educational analysis.

6.2.2. Once model legislation becomes a specific bill and the Project advocates for its passage, that advocacy becomes lobbying.

6.2.3. Consult before publishing work that may be perceived as advocating for the immediate passage of specific legislation.

6.3. Meetings with policymakers

6.3.1. Educational meetings with legislators and staff are unlimited if they discuss research and policy options without urging action on specific bills.

6.3.2. Meetings become direct lobbying when they reference specific legislation and urge support or opposition.

6.3.3. When in doubt about the purpose of a meeting, consult your Project Liaison.

7. Social media and online communications

7.1. Political campaign activity is prohibited

7.1.1. Projects may NOT support or oppose candidates for public office under any circumstances. (26 CFR § 1.501(c)(3)-1(c)(3)(iii))

7.1.2. This includes posting, retweeting, liking, or sharing content from political candidates or campaigns using Project social media accounts.

7.1.3. Projects may discuss policy issues that divide candidates as long as the content does not identify candidates or appear timed to influence elections.

7.2. Lobbying on social media

7.2.1. Social media posts become lobbying only when they combine three elements: reference to specific legislation, a view on that legislation, and a call to action.

7.3. Best practices

7.3.1. Projects should develop written social media guidelines distinguishing permitted advocacy from lobbying.

7.3.2. Use consistent disclaimers on organizational accounts.

7.3.3. For posts that mention specific legislation, consider having a second person review before posting.

8. Consequences of non-compliance

8.1. For Anti Entropy's 501(c)(3) status

8.1.1. Excise tax on excess lobbying: If Anti Entropy's lobbying expenditures exceed the nontaxable amount in a given year, the organization must pay a 25% excise tax on the excess lobbying expenditures. (26 U.S.C. § 4911(a))

8.1.2. Loss of exemption: If lobbying expenditures exceed 150% of the four-year sum of lobbying nontaxable amounts over a four-year averaging period, Anti Entropy will lose its 501(c)(3) tax-exempt status. (26 U.S.C. § 501(h)(1))

8.1.3. Political campaign activity: Any political campaign activity can result in immediate loss of 501(c)(3) status, regardless of amount. There is no safe harbor or excise tax option for political campaign activity.

8.2. For the Project

8.2.1. Projects that engage in excessive lobbying or any political campaign activity jeopardize not only their own operations but also Anti Entropy's ability to sponsor other Projects.

8.2.2. Anti Entropy may require Projects to cease lobbying activities, modify programs, or, in extreme cases, terminate the sponsorship agreement.

8.2.3. Project Leads who knowingly violate this policy may be subject to action up to and including termination of the sponsorship relationship.

9. Questions and support

9.1. If you are uncertain whether an activity constitutes lobbying or political campaign activity, contact your SparkWell Project Liaison before proceeding.

9.2. Your Liaison can help you structure activities to maximize policy impact while remaining compliant.

9.3. When planning significant policy campaigns or legislative engagement, discuss your plans with SparkWell early in the process.

9.4. Anti Entropy may consult with legal counsel on complex questions and will share guidance with Projects.

Appendix: Examples of advocacy and lobbying

Examples of permitted advocacy activities

Research and analysis

• Publishing a comprehensive study analyzing the economic impact of different AI regulation approaches, including a discussion of pending bills, as long as the analysis provides a full and fair exposition of facts
• Creating datasets and releasing them publicly for other researchers to use in studying policy questions
• Hosting a research symposium bringing together academics, policymakers, and industry to discuss AI safety research findings
• Developing technical benchmarks or assessment frameworks that could inform policy development

Educational engagement

• Organizing a workshop series on AI risk mitigation strategies for policymakers and their staff
• Responding to a policymaker's question about technical aspects of AI systems without discussing specific legislation
• Creating an online course about AI policy challenges available to the general public
• Publishing explainers on complex technical topics relevant to policy discussions

Public awareness

• Launching a public awareness campaign about AI safety challenges and potential solutions
• Social media posts like "New research shows AI systems can exhibit unexpected behaviors. Our latest paper examines five mitigation approaches."
• Op-eds discussing the need for AI governance frameworks without reference to specific bills
• Producing videos or interactive content explaining AI policy issues to general audiences

Policy frameworks

• Publishing "Principles for Responsible AI Development" as a framework for policymakers to consider
• Releasing model policy language for state legislatures considering AI regulation, presented as one option among several
• Developing and sharing best practices for AI safety based on research findings

Policymaker engagement

• Meeting with a senator's technology policy advisor to share research findings on AI capability trends without discussing pending legislation
• Providing a technical briefing to a legislative committee on how large language models work, without taking positions on bills
• Testifying at a congressional hearing in response to a formal written request from the committee chair
• Meeting with White House Office of Science and Technology Policy staff to discuss AI research developments

Executive and administrative engagement

• Submitting detailed comments on proposed AI regulations from the Department of Commerce
• Meeting with EPA staff to discuss how AI could be used in environmental monitoring
• Participating in a NIST working group developing AI standards
• Advocating for the FDA to issue guidance on AI use in medical devices

Examples of lobbying activities

Direct lobbying

• Emailing a senator's legislative director to urge support for S.456, the AI Safety Act
• Meeting with a congressional committee staff member specifically to advocate for the passage of pending AI regulation
• Calling legislators' offices, asking them to co-sponsor specific legislation
• Attending a reception with members of Congress where you discuss why they should support or oppose a specific bill
• Signing onto a coalition letter to House leadership urging a floor vote on H.R.789
• Sending a letter to the White House urging the President to support or oppose specific legislation pending in Congress

Grassroots lobbying

• Social media post: "H.R.123 threatens AI innovation. Contact your representative today at 202-XXX-XXXX and urge them to oppose it!"
• Email blast to supporters describing a bill as harmful and providing a link to a "contact Congress" tool
• Website action alert with headline "Stop the AI Surveillance Act!" and form to email legislators
• Tweet: "Senate votes tomorrow on S.456. Tell your senators to vote YES. Find their numbers here: [link]"
• An online petition addressed to Congress about specific legislation with signatures forwarded to legislators

Coalition work

• Participating in a coalition meeting where members discuss strategy for getting S.456 to a floor vote (even if you don't sign letters, this meeting time counts as lobbying)
• Contributing funding to a coalition that will lobby on specific legislation
• Jointly releasing a public statement with other organizations calling on Congress to pass specific bills

What makes the difference

NOT lobbying: "Climate change requires urgent policy action. Our research examines five potential approaches." (No specific legislation, no call to action)

IS lobbying: "Climate change requires urgent policy action. Congress should pass the Clean Energy Act (S.456) now. Contact your senator." (Specific legislation + view + call to action)

NOT lobbying: "S.456 proposes new clean energy standards. Our analysis examines potential economic impacts under different implementation scenarios." (Discusses specific legislation but nonpartisan analysis without call to action)

IS lobbying: "We support S.456, the Clean Energy Act. Call your senator today." (Specific legislation + view + call to action)

Examples of prohibited political campaign activity

Absolutely prohibited activities (all result in immediate risk to tax-exempt status)

• Endorsing a candidate: "We support Candidate X for Senate because they support AI safety."
• Social media engagement with campaigns: Retweeting, liking, or sharing posts from candidate campaign accounts
• Candidate comparisons: "Candidate X has a strong record on AI policy, while Candidate Y does not."
• Rating candidates: Publishing scorecards that rate candidates on policy positions
• Donations or in-kind contributions: Providing anything of value to a political campaign, including staff time, office space, or mailing lists
• Hosting candidate events: Hosting a candidate forum where only some candidates are invited or where the format favors certain candidates

Permissible activities (not political campaign activity)

• Issue education during election season: "Three policy approaches to AI regulation are being debated" (without mentioning candidates)
• Nonpartisan voter registration: Encouraging people to register to vote without mentioning candidates or parties
• All-candidate forums: Hosting a forum where all candidates are invited, given equal time, and asked the same questions
• Policy position tracking: Publishing factual information about where all candidates stand on issues, presented neutrally

The key distinction

Lobbying (permitted within limits): "Contact Congress to support H.R.456"

Political campaign activity (absolutely prohibited): "Vote for Candidate X who supports H.R.456"

The difference: Lobbying is about legislation; political campaign activity is about candidates.