Instructions For Schedule C (Form 990 Or 990-Ez) 2008 (Page 2 of 8) in pdf

3. Amounts paid or incurred to try to

A communication encourages a

view on, is of direct interest to the

influence legislation, whether or not for

recipient to take action when it:

organization and its members.

the purposes described in 1 above,

3. The communication does not

1. States that the recipient should

4. Allowance for depreciation or

directly encourage the member to engage

contact legislators;

amortization, and

in direct lobbying (whether individually or

2. States a legislator’s address, phone

5. Fundraising expenditures, except

through the organization).

number, etc.;

that exempt purpose expenditures do not

4. The communication does not

3. Provides a petition, tear-off

include amounts paid to or incurred for

directly encourage the member to engage

postcard, or similar material for the

either the organization’s separate

in grassroots lobbying (whether

recipient to send to a legislator; or

fundraising unit or other organizations, if

individually or through the organization).

4. Specifically identifies one or more

the amounts are primarily for fundraising.

legislators who:

Expenditures for a communication

a. Will vote on legislation;

See Regulations section 56.4911-4(c)

directed only to members that refers to,

b. Opposes the communication’s view

for a discussion of excluded expenditures.

and reflects a view on, specific legislation

on the legislation;

and that satisfies the requirements of

Lobbying expenditures. Lobbying

c. Is undecided about the legislation;

items (1), (2), and (4), above, but does

expenditures are expenditures (including

d. Is the recipient’s representative in

not satisfy the requirements of item (3),

allocable overhead and administrative

the legislature; or

are treated as expenditures for direct

costs) paid or incurred for the purpose of

e. Is a member of the legislative

lobbying.

attempting to influence legislation:

committee that will consider the

•

Through communication with any

Expenditures for a communication

legislation.

member or employee of a legislative or

directed only to members that refers to,

similar body, or with any government

A communication described in (4)

and reflects a view on, specific legislation

official or employee who may participate

above generally is grassroots lobbying

and satisfies the requirements of items (1)

in the formulation of the legislation, and

only if, in addition to referring to and

and (2), above, but does not satisfy the

•

By attempting to affect the opinions of

reflecting a view on specific legislation, it

requirements of item (4), are treated as

the general public.

is a communication that cannot meet the

grassroots expenditures, whether or not

To determine if an organization has spent

full and fair exposition test as nonpartisan

the communication satisfies the

excessive amounts on lobbying, the

analysis, study, or research.

requirements of item (3). See Regulations

organization must know which

section 56.4911-5 for details.

Exceptions to lobbying. In general,

expenditures are lobbying expenditures

engaging in nonpartisan analysis, study,

There are special rules regarding

and which are not lobbying expenditures.

or research and making its results

certain paid mass media advertisements

An electing public charity’s lobbying

available to the general public or segment

about highly publicized legislation;

expenditures for a year are the sum of its

or members thereof, or to governmental

allocation of mixed purpose expenditures;

expenditures during that year for direct

bodies, officials, or employees is not

certain transfers treated as lobbying

lobbying communications (direct lobbying

considered either a direct lobbying

expenditures; and special rules regarding

expenditures) plus grassroots lobbying

communication or a grassroots lobbying

lobbying on referenda, ballot initiatives,

communications (grassroots

communication. Nonpartisan analysis,

and similar procedures (see Regulations

expenditures).

study, or research may advocate a

sections 56.4911-2 and 56.4911-3).

Direct lobbying communications

particular position or viewpoint as long as

Affiliated groups. Members of an

(direct lobbying expenditures). A

there is a sufficiently full and fair

direct lobbying communication is any

affiliated group are treated as a single

exposition of the pertinent facts to enable

attempt to influence any legislation

organization to measure lobbying

the public or an individual to form an

expenditures. Two organizations are

through communication with:

independent opinion or conclusion.

•

A member or employee of a legislative

affiliated if one is bound by the other

A communication that responds to a

organization’s decisions on legislative

or similar body,

•

governmental body’s or committee’s

A government official or employee

issues (control) or if enough

written request for technical advice is not

(other than a member or employee of a

representatives of one belong to the other

a direct lobbying communication.

organization’s governing board to cause

legislative body) who may participate in

the formulation of the legislation, but only

or prevent action on legislative issues

A communication is not a direct

(interlocking directorate). If the

if the principal purpose of the

lobbying communication if the

communication is to influence legislation,

organization is not sure whether its group

communication is an appearance before,

is affiliated, it may ask the IRS for a ruling

or communication with, any legislative

•

letter. There is a fee for this ruling. For

The public in a referendum, initiative,

body concerning action by that body that

constitutional amendment, or similar

information on requesting rulings, see

might affect the organization’s existence,

procedure.

annual revenue procedure.

its powers and duties, its tax-exempt

status, or the deductibility of contributions

A communication with a legislator or

Members of an affiliated group

to the organization, as opposed to

government official will be treated as a

measure both lobbying expenditures and

affecting merely the scope of the

direct lobbying communication if, but only

permitted lobbying expenditures on the

organization’s future activities.

if, the communication:

basis of the affiliated group’s tax year. If

•

Refers to specific legislation, and

all members of the affiliated group have

Communication with members. For

•

Reflects a view on such legislation.

the same tax year, that year is the tax

purposes of section 4911, expenditures

year of the affiliated group. However, if

Grassroots lobbying

for certain communications between an

the affiliated group’s members have

communications (grassroots

organization and its members are treated

different tax years, the tax year of the

expenditures). A grassroots lobbying

more leniently than are communications

affiliated group is the calendar year,

communication is any attempt to influence

to nonmembers. Expenditures for a

unless all the members of the group elect

any legislation through an attempt to

communication that refers to, and reflects

otherwise. See Regulations section

affect the opinions of the general public or

a view on, specific legislation are not

56.4911-7(e)(3).

any part of the general public.

lobbying expenditures if the

communication satisfies the following

A communication is generally not a

Limited control. Two organizations

requirements.

grassroots lobbying communication

that are affiliated because their governing

unless (in addition to referring to specific

1. The communication is directed only

instruments provide that the decisions of

legislation and reflecting a view on that

to members of the organization.

one will control the other only on national

legislation) it encourages recipients to

2. The specific legislation the

legislation are subject to the following

take action about the specific legislation.

communication refers to, and reflects a

provisions.

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Instructions For Schedule C (Form 990 Or 990-Ez) 2008 Page 2

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