Spiritual_Wellness_Holistic_Health_and_the_Practic

312 Philosophical Foundations of Health Education
ORGANIZATIONAL CONSIDERATIONS IN ADVOCACY
An organization ’ s tax - exempt status from the Internal Revenue Service (IRS) significantly
affects the types and level of its political activities. While there are a variety of
IRS categories, most health or trade groups have either a 501(c)(3) or 501(c)(6) tax
status (Henson, 1996). IRS defines a 501(c)(3) organization as one that is organized
and operated exclusively for charitable, religious, education, or safety purposes, or for
fostering national or international amateur sports competition, prevention of cruelty to
children and animals, or a private foundation (Henson, 1996). The main benefits of
501(c)(3) tax status are that such groups are eligible to receive grants from public and
private sources, donations from its contributors are tax - deductible, and the association
can apply to receive an exemption from paying state sales tax. Organizations designated
as 501(c)(4) are designed for the promotion of social welfare, with their net
earnings devoted exclusively to charitable, educational, or recreational purposes.
Although contributions to a 501(c)(6) organization is one in which persons or entities
have some common business interest, the purpose of which is to promote such common
interest and not to engage in a for - profit business. While 501(c)(3) organizations
cannot participate directly or indirectly in a campaign for public office, 501(c)(6)
groups are not limited in their endorsement of political candidates (Ernstthal & Jones,
1996). Furthermore, a 501(c)(3) organization ’ s political activities must comprise an
“ unsubstantial ” portion of its overall program, which by various inurement tests is
considered roughly 20 percent of its total operating budget (Henson, 1996). In contrast,
the IRS does not restrict the amount of lobbying by 50l(c)(6) organizations,
except that its members cannot consider the portion of member dues attributable to
lobbying a tax - deductible contribution.
Both 501(c)(3) and 501(c)(6) tax - exempt designations are common among health
groups. Many groups that apply for 501(c)(6) status to provide flexibility in their political
pursuits also have companion 501(c)(3) foundations to be eligible for the attractive
tax - exempt benefits, for example, the American Dietetic Association and the
American Dietetic Association Foundation. Many health - related organizations such as
the American Medical Association (AMA) have formed political action committees
(PACs) to enhance their political effectiveness. AMA ’ s political action committee,
AMPAC, was formed in 1961 “ to advance the goals of medicine at the federal level by
supporting candidates who share basic philosophies and similar views on health care
issues ” (AMAPAC, n.d.). AMPAC is solely supported by voluntary, non - dues contributions
by members from the state level up.
In addition to forming PACs, many of the larger, better - established health groups
operate government relations departments that include registered lobbyists. According
to the Lobbying Disclosure Act of 1995, a lobbyist is a person paid by another, whether
a client or employer, to make lobbying contacts, unless that person spends less than
20 percent of his or her time on lobbying activities for the employer or a particular
clients during a six - month period (Ballantine & Ross, 1996). A lobbying contact is an
oral or written communication with members of Congress, congressional staff, political