Final answer:
Public charities under the IRC are allowed to engage in direct lobbying activity within certain limits. These limits are based on the size and activities of the charity, with overall lobbying not constituting a substantial part of its activities, while also adhering to disclosure requirements and prohibitions on certain activities like gift-giving to lawmakers.
Step-by-step explanation:
Under the Internal Revenue Code (IRC), public charities are permitted to engage in some degree of direct lobbying. However, these activities are not without limits. A public charity is allowed to lobby as long as the lobbying does not constitute a substantial part of its overall activities. There are also monetary thresholds, based on a charity's size, which can be applied as an alternative to the substantial part test. The specifics of these limits are detailed in the 501(h) expenditure test of the IRC. However, it's important to note that certain activities, such as gift-giving to lawmakers and compensatory lobbying based on results, are prohibited among all lobbyists to prevent unethical influence on legislation.
Furthermore, public charities must comply with federal regulations, such as those in the Lobbying Disclosure Act and the Honest Leadership and Open Government Act. These acts require detailed disclosure of lobbying activities and restrict certain behaviors, such as immediate transitioning from public service to lobbying, known as the 'revolving door' phenomenon. Violations of lobbying regulations can lead to significant fines and even imprisonment, underscoring the legal requirement for transparency and ethical conduct in lobbying efforts by public charities and other entities.