Public Foundations
Public foundations are under the same IRS restrictions as other public charities when it comes to engaging in and funding lobbying and other public policy strategies. Unlike private foundations, a public foundation may itself lobby and may earmark a grant for lobbying, but must count the amount of the earmarked grant against its own overall and grassroots lobbying limits. The grant will also count against the grantee's lobbying limits. The following resources detail these restrictions as well as permissible activities.

General Information
"Community Foundations and Public Policy" Center for Lobbying in the Public Interest

"Community Foundations: Lobbying and Public Policy Participation" Center for Lobbying in the Public Interest

Frequently Asked Questions about Nonprofit Lobbying, Center for Lobbying in the Public Interest

"Investing in Change: A Funders Guide to Supporting Advocacy" Alliance for Justice

"The Public Charity's Guide to the California Ballot Initiative Process" by Rosemary Fei, Diane Fishburn, and Barbara Rhomberg, Northern California Grantmakers

"Public Foundation Representatives Can Safely Visit Legislators" Alliance for Justice

501(h) election
In order to maximize its ability to engage in public policy advocacy, public charities may opt to take the 501(h) election under the IRS Revenue Code. This allows a public charity to be extensively involved in lobbying and provides clear definitions for, and limits around, lobbying efforts. Generally, small organizations that opt for the 501(h) election have much more leeway to engage in lobbying than organizations that do not take the election. However, large public charities (with annual budgets in the tens of millions of dollars) may be better off not taking the 501(h) election.

"Why Your Charity Should Elect to Come Under the 1976 Lobby Law and How To Do It" Center for Lobbying in the Public Interest