This memo is intended to help you explain how the lobbying profession works to the news media, to other external audiences, and to your own employees. We have provided links to further information that will be helpful to senior public affairs executives, PAC/grassroots managers and corporate communications professionals.

FOR THE NEWS MEDIA AND OTHER EXTERNAL AUDIENCES

The Public Affairs Council often participates in interviews with major news organizations, including The Washington Post, Reuters, BBC Radio, The National Journal, Congressional Quarterly, Washington Times and others.

Among other things, we've emphasize the following key points:

- The vast majority of lobbyists would never engage in the illegal and unethical activities in which Abramoff was involved. Lobbyists need to have a reputation for being trustworthy and knowledgeable to be successful in Washington, D.C.

- Lobbying is protected by the First Amendment. When individuals or groups lobby, they are exercising their basic right "to petition the government for redress of grievances." As government has grown in size and complexity, more lobbyists have been needed to explain how business operates, how technology works, how legislation would affect various interests, and how consensus can be achieved in public policy-making.

- Laws currently exist that require lobbyists to register with the Senate and House and file disclosure reports six times a year.

- Our campaign finance system is tightly regulated to avoid corruption or coercion. Firm limits are placed on contributions made by individuals and groups.

- While it's possible that Abramoff did, in fact, make an illegal payment to one or more members of Congress, observers need to be careful not to confuse legitimate campaign contributions with illegal activities. The fact is, people tend to give financial support to politicians who already agree with them on key issues. For a regular campaign contribution to become a bribe, there must be a payment made in return for a specific action. This kind of "quid pro quo" is certainly illegal but it is an extremely rare occurrence.

- There have already been many calls for lobbying reform, but Congress should focus first on better enforcement of current laws and rules. It also needs to ensure that members of Congress and their staffs have had ethics training and thoroughly understand gift rules, lobbying restrictions and campaign finance laws. In addition, the lobbying profession needs to be more transparent about its practices in order to alleviate public distrust.

- Because of the Abramoff scandal, companies and associations are taking a harder look at which contract lobbyists they hire to represent their interests. Obviously, no one wants to be associated with an unethical consultant.

For more details on any of these key points, refer to the information below or give us a call.

FOR COMMUNICATING WITH INTERNAL AUDIENCES

It's vital that both corporations and associations take a proactive stance in communicating about the scandal with internal audiences. This is a time to educate people about how our political system works, why lobbying is valuable, how a PAC operates, and when grassroots advocacy can play an important role. You'll want to set the record straight by discussing the steps you take to comply with laws, meet or exceed ethics rules, and conduct your program openly and effectively.

Here are some answers to frequently asked questions about lobbying:

1. What is lobbying?

Here is the definition from http://www.wikipedia.org/. "Lobbying is the practice of private advocacy with the goal of influencing a governing body, in order to ensure that an individual's or organization's point of view is represented in the government. A lobbyist is a person who is paid to influence legislation as well as public opinion. A more tactful description might be said to be someone who is engaged in public affairs. Most major corporations and political interest groups hire professional lobbyists to promote their interests as intermediaries; others maintain in-house government or public relations departments. Think tanks aim to lobby through regular releases of detailed reports and supporting research to the media for dissemination."

2. What gives people the right to lobby?

The First Amendment states: "Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances." When someone lobbies, he or she is exercising their basic right to petition the government and have their voice heard in the legislative arena. The Founding Fathers believed that having a broad and open public discussion -- through individual speech, the press and through public policy debates -- was necessary in a democratic society.

3. Why do we need lobbyists?

If government officials were expert on every subject that comes before them (and the issues were fewer and less complicated) there would be less need for lobbyists. But our world is becoming increasingly complex. In addition, the size of government has continued to grow.

As a result, lobbyists spend most of their time educating members of Congress and their staffs about:

-- How science, technology, global trade, national security issues, market forces and other factors affect individuals, companies, nations and other constituencies.

-- How current or proposed government regulations can help or hurt these various constituencies.

In addition, lobbyists seek to influence legislative outcomes by advocating their point of view. (The good ones also acknowledge accurately the points of view of those who oppose them.) Many lobbyists try to help like-minded members of Congress and their staffs strategize for upcoming public policy debates. There are thousands of interests trying to be heard in Washington, DC.

4. Why do lobbyists get involved with fundraising?

The American public has never had much of an appetite for public funding of campaigns. At the same time, the cost of running for elected office continues to increase. According to a 2005 study by researchers at the University of Washington, "It is no longer possible to run for Senate with less than $3 million in the campaign coffers, in any state in the union." In larger states, adds the study, candidates will need $10 million to be competitive if running for the Senate in 2006. This means that a candidate for the U.S. Senate must raise between $10,000 and $30,000 per week for six years in order to have a chance of winning! As a result, it shouldn't be surprising that members of Congress spend a lot of time trying to raise funds for their next campaign.

The Federal Election Campaign Act (as modified by the Bipartisan Campaign Reform Act of 2002) sets very specific limits for campaign contributions by individuals and political action committees. (Corporations and labor unions are not permitted to make contributions, including in-kind contributions, to federal candidates or committees.) Individuals may contribute up to $2,400 per election to candidates, up to $5,000 per year to PACs, up to $10,000 per year to federal accounts of state party committees, and up to $30,400 per year to national party committees. . A qualified corporate or trade association federal PAC may contribute up to $5,000 per election to a candidate for federal office. For more detailed information on campaign finance laws, go to the Federal Election Commission website.

Many contract lobbyists, in particular, play a major role in congressional fundraising. Some lobbyists help to organize fundraisers for candidates that they and their clients support. Others attend such fundraisers and make contributions to like-minded candidates.

5. How are federal lobbyists regulated?

According to The Lobbying Disclosure Act of 1995, a lobbyist is defined as someone who is employed or retained for financial or other compensation for services that include more than one lobbying contact, other than an individual whose lobbying activities constitute less than 20% of the time engaged in the services provided by the individual to the client or employer over a six-month period. "Lobbying contacts" do not include requests for meetings or status reports that do not attempt to influence a legislative or executive official; testimony before a congressional panel; information provided at the request of a government official; or communications made in response to government notices requesting comment from the public.

A lobbyist must register with the Secretary of the Senate and the Clerk of the House and must file quarterly disclosure reports. These reports cover lobbying expenditures, payments to contract lobbyists, and the income a contract lobbyist receives for lobbying.

6. What about grassroots advocacy?

"Grassroots advocacy" refers to the efforts by people and organizations at the local level to influence public policy at the state, national and international levels. As opposed to direct lobbying, grassroots involves individual constituents writing letters, sending emails and faxes, or visiting legislators to "petition the government." Since the introduction of the Internet, the amount of grassroots advocacy has exploded in Washington, D.C. According to a study by the Congressional Management Foundation, Congress received 200 million communications in 2004 -- four times more than in 1995 - and the numbers are increasing exponentially eavery year.

Much of this grassroots activity is the result of grassroots campaigns organized by activist groups, political organizations, corporations, associations and unions. These organizations try to educate supporters, employees, local communities and others about key public policy issues that affect them. Then, when a legislative debate ensues in Washington, D.C., these people are encouraged to communicate with their elected representatives. The most effective grassroots organizations are well-organized and ensure that these campaigns are targeted and genuine expressions of individual opinions. However, over the years some groups have been accused of conducting "astroturf" campaigns that misrepresent the views of individuals or -- even worse -- falsify communications sent to elected representatives. Fortunately, congressional staff and the news media have become more sophisticated in their ability to spot such astroturf campaigns. Needless to say, reputable organizations don't engage in this type of activity.

One of the real benefits of grassroots advocacy is that it helps to level the playing field for groups and individuals who lack the time or financial resources to engage in direct lobbying. A member of Congress who is "on the fence" regarding a certain issue is much more likely to pay attention to 100 constituent letters than to one influential lobbyist who is not a constituent. In addition to detailing the explosion in citizen advocacy on Capitol Hill, a recent study by the Congressional Management Foundation also shows us that personalized contact from constituents is one of the most influential components in a member's decision-making process.

7. Why should people care about lobbying and politics?

America's grand experiment that is representative democracy is driven by the concept of "citizen advocacy." But the system won't work unless elected officials hear directly from those they represent. Being an active citizen means voting, but one's responsibilities go beyond the voting booth. Active citizenship means sharing your concerns and opinions and requesting action. As more individuals speak up on all sides of an issue, legislators become more informed about a proposal's impact on their constituencies. This makes them better prepared to make a decision. The First Amendment guarantees free speech, an open news media, freedom of assembly and an explicit right "to petition the government." Taken together, these rights lead to an open and public debate on important issues that affect all of us.

8. Why do we have a government affairs department?

The philosopher Plato once said, "The punishment wise men suffer from indifference to public affairs is to be ruled by unwise men." In other words, if you don't get involved in politics, you have no one to blame but yourself if you don't like what the government is doing.

Despite the fact that US presidents from Ronald Regan to Bill Clinton have said "the era of Big Government is over," the size and scope of government have continued to increase. Government decides how business is conducted, who owns information, who can merge with another company, what the rules are for trade, and who pays what taxes. In addition, a legislative decision made in one industry sector often has an impact that reverberates in many other sectors.

Government affairs professionals monitor legislative and regulatory issues and ensure that their organization's interests are fairly represented. Government affairs professionals help their organizations gain access to new markets, introduce new products and services, maintain a level playing field with competitors, protect their financial heath and minimize unnecessary risk. In the process, of course, they try to make the needs of their own organization compatible with the public interest. The vast majority of government affairs departments do their jobs competently and in a socially responsible manner.

9. What about PACs? Isn't a PAC just a way to buy votes?

PACs allow individuals with similar interests to pool funds together to support like-minded candidates. PACs represent all kinds of groups and causes, including environmental organizations, labor unions, professional associations, health-related causes, and corporations. PACs have not been the focus of recent scandals or reform measures because PACs are not the problem. They are closely monitored by the Federal Election Commission, are subject to strict rules on fundraising, contribution limits and communications, and are required to submit frequent and detailed reports that are then posted online and available to anyone. (In fact, PACs are probably the most transparent means of political involvement). PACs are an effective way for individuals to join together to participate in state and national politics. We have more information on why PACs are important on our site.

Finally, as the debate over lobbying reform continues to expand, we thought you would enjoy reading the concluding paragraph from a January 20, 2006, editorial in The Washington Post entitled "A Rush on Lobbying Reform." You may even want to use it in your communications to both external and internal audiences.

"Lobbying reform in the sense of fixing the rules under which lobbyists operate is necessary -- indeed, it's long overdue. But despite the rush to vilify them, lobbyists play a useful role in educating lawmakers and staff about complex issues. Lobbying rules touch on the constitutional right of citizens to petition their government, so it's important that restrictions be drawn carefully. As lawmakers work on improving those rules, they should remember that it's not just the behavior of lobbyists that's a problem."