What if you know your grantee plans to engage in lobbying as part of a project for which you’re making a grant? The short answer is: As long as you take some simple precautions to be sure the lobbying and the grant are permissible, that’s fine. Foundations that support 501(c)(3) organizations don’t need to pretend that lobbying doesn’t take place, and they don’t need to wall themselves off from any knowledge or discussion of it.
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This takeaway was derived from Advocacy Funding.