Instructions For Schedule A (Form 990 Or 990-Ez) - 2005 Page 10


Grassroots lobbying communications
paragraphs 1, 2, and 4, but does not
board to cause or prevent action on
(grassroots expenditures). A
satisfy the requirements of paragraph 3,
legislative issues (interlocking
grassroots lobbying communication is any
are treated as expenditures for direct
attempt to influence any legislation
If you are not sure whether your group
through an attempt to affect the opinions
Expenditures for a communication
is affiliated, you may ask the IRS for a
of the general public or any part of the
directed only to members that refers to,
ruling letter. There is a fee for this ruling.
general public.
and reflects a view on, specific legislation
For Information on requesting rulings,
A communication is generally not a
and satisfies the requirements of
see Rev. Proc. 2005-4, 2005-1 I.R.B. 128.
grassroots lobbying communication
paragraphs 1 and 2, but does not satisfy
Members of an affiliated group
unless (in addition to referring to specific
the requirements of paragraph 4, are
measure both lobbying expenditures and
legislation and reflecting a view on that
treated as grassroots expenditures,
permitted lobbying expenditures on the
legislation) it encourages recipients to
whether or not the communication
basis of the affiliated group’s tax year. If
take action about the specific legislation.
satisfies the requirements of paragraph 3.
all members of the affiliated group have
A communication encourages a
See Regulations section 56.4911-5 for
the same tax year, that year is the tax
recipient to take action when it:
year of the affiliated group.
There are special rules regarding
(1) States that the recipient should
However, if the affiliated group’s
certain paid mass media advertisements
contact legislators;
members have different tax years, the tax
about highly publicized legislation;
year of the affiliated group is the calendar
allocation of mixed purpose expenditures;
(2) States a legislator’s address, phone
year, unless all the members of the group
certain transfers treated as lobbying
number, etc.;
elect otherwise. See Regulations section
expenditures and special rules regarding
lobbying on referenda, ballot initiatives,
(3) Provides a petition, tear-off
and similar procedures (see Regulations
If the electing organization belongs to
postcard, or similar material for the
sections 56.4911-2 and -3).
an affiliated group, complete in Part VI-A,
recipient to send to a legislator; or
lines 36 through 44:
Legislation. In general, the term
Column (a) for the affiliated group as a
legislation includes Acts, bills, resolutions,
(4) Specifically identifies one or more
whole, and
or similar items. Specific legislation
legislators who:
Column (b) for the electing member of
includes both legislation that has already
Will vote on legislation;
the group.
been introduced in a legislative body and
Opposes the communication’s view on
a specific legislative proposal that the
If there are no excess lobbying
the legislation;
organization either supports or opposes.
expenditures on either line 43 or 44 of
Is undecided about the legislation;
Exceptions to the definitions of direct
column (a), treat each electing member
Is the recipient’s representative in the
lobbying communication and/or
as having no excess lobbying
legislature; or
grassroots lobbying communication.
Is a member of the legislative
In general, engaging in nonpartisan
committee that will consider the
However, if there are excess lobbying
analysis, study, or research and making
expenditures on either line 43 or 44 of
its results available to the general public
A communication described in (4)
column (a), treat each electing member
or segment or members thereof, or to
above generally is grassroots lobbying
as having excess lobbying expenditures.
governmental bodies, officials, or
only if, in addition to referring to and
In such case, each electing member must
employees is not considered either a
reflecting a view on specific legislation, it
file Form 4720, Return of Certain Excise
direct lobbying communication or a
is a communication that cannot meet the
Taxes on Charities and Other Persons
grassroots lobbying communication.
full and fair exposition test as nonpartisan
Under Chapters 41 and 42 of the Internal
Nonpartisan analysis, study, or research
analysis, study, or research.
Revenue Code, and must pay the tax on
may advocate a particular position or
its proportionate share of the affiliated
Communication with members. For
viewpoint as long as there is a sufficiently
group’s excess lobbying expenditures.
purposes of section 4911, expenditures
full and fair exposition of the pertinent
To find a member’s proportionate
for certain communications between an
facts to enable the public or an individual
share, see Regulations section
organization and its members are treated
to form an independent opinion or
56.4911-8(d). Enter the proportionate
more leniently than are communications
share in column (b) on line 43 or line 44,
to nonmembers. Expenditures for a
A communication that responds to a
or on both lines.
communication that refers to, and reflects
governmental body’s or committee’s
a view on, specific legislation are not
written request for technical advice is not
Attached schedule. Attach a
lobbying expenditures if the
a direct lobbying communication.
schedule showing each affiliated group
communication satisfies the following
member’s name, address, EIN, and
A communication is not a direct
expenses. Use the format of Part VI-A for
lobbying communication if the
1. The communication is directed only
this schedule. Show which members
communication is an appearance before,
to members of the organization,
elected and which did not.
or communication with, any legislative
2. The specific legislation the
body whose action might affect the
Include each electing member’s share
communication refers to, and reflects a
organization’s existence, its powers and
of the excess lobbying expenditures on
view on, is of direct interest to the
duties, its tax-exempt status, or the
the attached schedule. Nonelecting
organization and its members,
deductibility of contributions to the
members do not owe tax, but remain
3. The communication does not
organization, as opposed to affecting
subject to the general rule, which
directly encourage the member to engage
merely the scope of the organization’s
provides that no substantial part of their
in direct lobbying (whether individually or
future activities.
activities may consist of carrying on
through the organization), and
propaganda or otherwise trying to
Affiliated groups. Treat members of an
4. The communication does not
influence legislation.
affiliated group as a single organization to
directly encourage the member to engage
measure lobbying expenditures and
Limited control. If two organizations
in grassroots lobbying (whether
permitted lobbying expenditures.
are affiliated because their governing
individually or through the organization).
Two organizations are affiliated if one
instruments provide that the decisions of
Expenditures for a communication
is bound by the other organization’s
one will control the other only on national
directed only to members that refers to,
decisions on legislative issues (control) or
legislation, apply expenditures as follows:
and reflects a view on, specific legislation
if enough representatives of one belong
Charge the controlling organization with
and that satisfies the requirements of
to the other organization’s governing
its own lobbying expenditures and the
Instructions for Schedule A (Form 990 or 990-EZ)


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