Instructions For Schedule C (Form 990 Or 990-Ez) 2008

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Department of the Treasury
Internal Revenue Service
Instructions for Schedule C
(Form 990 or 990-EZ)
Political Campaign and Lobbying Activities
organizations. If the organization
Presidential or Vice-Presidential electors,
Section references are to the Internal
answered “Yes” to Form 990, Part IV, line
whether or not such individual or electors
Revenue Code unless otherwise noted.
4, or Form 990-EZ, Part VI, line 47, then:
are selected, nominated, elected, or
A section 501(c)(3) organization that
appointed.
General Instructions
elected to be subject to the lobbying
Political expenditures. Any
expenditure limitations of section 501(h)
Note. Terms in bold are defined in the
expenditure for political campaign
by filing Form 5768 and for which the
Glossary of the instructions for Form 990.
activities are political expenditures. An
election was valid and in effect for its tax
expenditure includes a payment,
year beginning in the year 2008, must
Purpose of Schedule
distribution, loan, advance, deposit, or gift
complete Part II-A. Do not complete Part
of money, or anything of value. It also
Schedule C (Form 990 or 990-EZ) is used
II-B.
includes a contract, promise, or
by:
A section 501(c)(3) organization that
agreement to make an expenditure,
Section 501(c) organizations, and
has not elected to be subject to the
whether or not legally enforceable.
Section 527 organizations.
lobbying expenditure limitations of section
Specific legislation. Specific
501(h) (or has revoked such election by
These organizations must use
legislation includes (1) legislation that has
filing Form 5768 for which the revocation
Schedule C (Form 990 or 990-EZ) to
already been introduced in a legislative
was valid and in effect for its tax year
furnish additional information on political
body and (2) specific legislative proposals
beginning in the year 2008) must
campaign activities or lobbying
that an organization either supports or
complete Part II-B. Do not complete Part
activities, as those terms are defined
opposes.
II-A.
below for the various parts of this
schedule.
Part III. Section 6033(e) notice and
Definitions (Part II-A)
reporting requirements and proxy tax.
Who Must File
Definitions in this section are applicable
Part III is to be completed by section
only to Part II-A.
Any organization that answered “Yes” on
501(c)(4), section 501(c)(5), and section
Expenditure test. Under the
Form 990, Part IV, Checklist of Required
501(c)(6) organizations that received
expenditure test, there are limits both
Schedules, lines 3, 4, or 5, must complete
membership dues, assessments, or
upon the amount of the organization’s
and attach Schedule C (Form 990 or
similar amounts as defined in Rev. Proc.
grassroots lobbying expenditures and
990-EZ) to Form 990, and complete the
98-19, and that answered “Yes” to Form
upon the total amount of its direct
applicable parts relating to those lines.
990, Part IV, line 5.
lobbying and grassroots lobbying
Any organization that answered “Yes” on
If an organization is not required to file
expenditures. If the electing public charity
Form 990-EZ, Part VI, lines 46 or 47,
Form 990 or Form 990-EZ but chooses to
does not meet this expenditure test, it will
must complete and attach Schedule C
do so, it must file a complete return and
owe a section 4911 excise tax on its
(Form 990 or 990-EZ) to Form 990-EZ,
provide all of the information requested,
excess lobbying expenditures. Moreover,
and complete the applicable parts relating
including the required schedules.
if over a 4-year averaging period the
to those lines.
organization’s average annual total
If an organization has an ownership
Definitions
lobbying or grassroots lobbying
interest in a joint venture that conducts
expenditures are more than 150% of its
Definitions in this section are applicable
political campaign or lobbying activities,
dollar limits, the organization will lose its
throughout this schedule, except where
the organization must report its share of
exempt status.
noted. The following bold terms are
such activity occurring in its tax year on
defined in the Glossary.
Schedule C (Form 990 or 990-EZ).
Exempt purpose expenditures. In
Joint venture.
general, an exempt purpose expenditure
Part I. Political campaign activities.
Legislation.
is paid or incurred by an electing public
Part I is to be completed by section
Lobbying activities.
charity to accomplish the organization’s
501(c) and section 527 organizations. If
Political campaign activities.
exempt purpose.
the organization answered “Yes” to Form
Tax year.
990, Part IV, line 3, or Form 990-EZ, Part
Exempt purpose expenditures include:
VI, line 46, then:
Revenue Ruling 2007-41 provides
1. The total amount paid or incurred
TIP
guidelines for exempt
A section 501(c)(3) organization must
for religious, charitable, scientific, literary,
organizations on the scope of the
complete Parts I-A and I-B. Do not
or educational purposes, or for the
tax law prohibition of campaign activities
complete Part I-C.
prevention of cruelty to children or
by section 501(c)(3) organizations. (See
A section 501(c) organization other
animals, or to foster national or
Rev. Rul. 2007-41, 2007-25 I.R.B. 1421).
than section 501(c)(3) must complete
international amateur sports competition
Parts I-A and I-C. Do not complete Part
Section 527 exempt function
(not including providing athletic facilities
I-B.
activities. All functions that influence or
or equipment, other than by qualified
A section 527 organization must
attempt to influence the selection,
amateur sports organizations described in
complete Part I-A. Do not complete Parts
nomination, election, or appointment of
section 501(j)(2)),
I-B and I-C.
any individual to any federal, state, or
2. The allocable portion of
Part II. Lobbying activities. Part II is to
local public office or office in a political
administrative expenses paid or incurred
be completed only by section 501(c)(3)
organization, or the election of
for the above purposes,
Cat. No. 20374L

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