What Foundations Cannot Do

The Tax Reform Act of 1969, its accompanying regulations, and subsequent laws and regulations enacted during the next three decades have explicitly prohibited four activities by foundations in the policy arena.

1.  Foundations may not make grants for or against the passage of specific legislation, which includes acts, bills, resolutions, ballot initiatives, and referenda. Foundations may not expend money directly to support or defeat specific pieces of legislation, nor are they allowed to make grants to nonprofit organizations to support or defeat specific pieces of legislation.

2.  Foundations may not engage in direct lobbying. This includes meeting with legislators or their staffs to discuss the following things: ...

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