I will save Stephen here.  :)

On Thu, Dec 20, 2012 at 8:30 AM, Itzik Edri <itzik@infra.co.il> wrote:
Thanks Stephen

It's interesting issue and I don't know how many chapters or people from the FDC\GAC are members here, so it may be better to have it also in a wider community.

1. Why there is diffrent between what allow under money that comes from the FDC and the GAC? I thought the problem is the WMF finance something that is not legal under the U.S law - but it both of the cases the money come from the same source.

Under U.S. law, we are required to track grant money for legislative activities (some of which are permitted within certain IRS defined parameters).  The Grants Program is used for project specific grants for such legislative activities; grants under that program are easier for us to track for U.S. IRS purposes.   The IRS is strict about this and we need to ensure close control on the use of the money.  The Grants Program provides that mechanism.   Chapters cannot use WMF grant money for legislative activities without approval from WMF (and that approval is provided through the Grants Program).  Before approving such a grant, WMF needs to ensure the grants fall within the tolerated parameters.

2. "Grants for such activities (when permitted under U.S. law and IRS regulations)" - so, back again to the question - if in IL is legal to NGO and non profit NGO to support lobbying such as what we did, and you say that according to the U.S law - it's not allow - it mean that also the GAC is not allow to finance it?  

As the IRS links demonstrate (which Stephen sent out), non-profits can engage in some limited legislative activities but that engagement must be within certain parameters (including financial thresholds).   WMF is required to track the use of such grants for IRS purposes. 

Hope that helps, Itzik.  

Take care, 

Geoff  

Itzik

On Thu, Dec 20, 2012 at 6:23 PM, Stephen LaPorte <slaporte@wikimedia.org> wrote:
On Thu, Dec 20, 2012 at 7:48 AM, Itzik Edri <itzik@infra.co.il> wrote:
Amgine, Of course the US law not apply on IL, but every entity that get budget from the FDC confirm that he will not be involve in politics lobbing. It seem that what is not consider political lobbing in Israel is consider true in US, so we need to see that we not clash with the FDC rules.

FDC funds may not be used for political campaign activity or lobbying, but lobbying activity may be covered by project grants from the GAC or other funding sources. Here is the line on the FDC request form:

The term “political or legislative activities” includes any activities relating to political campaigns or candidates (including the contribution of funds and the publication of position statements relating to political campaigns or candidates); voter registration activities; meetings with or submissions and petitions to government executives, ministers, officers or agencies on political or policy issues; and any other activities seeking government intervention or policy implementation (like “lobbying”), whether directed toward the government or the community or public at large. Grants for such activities (when permitted under U.S. law and IRS regulations) should be sought from the GAC.

http://meta.wikimedia.org/wiki/Funds_Dissemination_Committee/Grant_application_form 

See also http://meta.wikimedia.org/wiki/Funds_Dissemination_Committee/Framework_for_the_Creation_and_Initial_Operation_of_the_FDC#General_versus_project_funding

I cannot provide you legal advice, but I am happy to discuss the issue with you in detail if you are concerned.

--
Stephen LaPorte
Legal Counsel
Wikimedia Foundation

For legal reasons, I may only serve as an attorney for the Wikimedia Foundation. This means I may not give legal advice to or serve as a lawyer for community members, volunteers, or staff members in their personal capacity.

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This message might have confidential or legally privileged information in it. If you have received this message by accident, please delete it and let us know about the mistake. For legal reasons, I may only serve as an attorney for the Wikimedia Foundation. This means I may not give legal advice to or serve as a lawyer for community members, volunteers, or staff members in their personal capacity.