Instructions For Schedule C (Form 990 Or 990-Ez) 2008 (Page 4 of 8) in pdf

Part II-A provides a reporting format

lobbying expenditures. In such case, each

or 2 above applies. If the organization is

for any section 501(c)(3) organization that

electing member must file Form 4720,

not required to complete all five columns,

engaged in lobbying activities in its tax

and must pay the tax on its proportionate

provide a statement explaining why in

year, and for which the 501(h) lobbying

share of the affiliated group’s excess

Part IV. In the statement, show the ending

expenditure election was valid and in

lobbying expenditures. Enter the

date of the tax year in which the

effect. A public charity that makes a valid

proportionate share in column (a) on line

organization made its first section 501(h)

section 501(h) election may spend up to a

1h or line 1i, or on both lines. Attach the

election and state whether or not that first

certain percentage of its exempt purpose

list described above under Affiliated

election was revoked before the start of

expenditures to influence legislation

Group List. Show what amounts apply to

the organization’s tax year that began in

without incurring tax or losing its tax

each group member. To find a member’s

2008.

exempt status.

proportionate share, see Regulations

Note. If the organization belongs to an

section 56.4911-8(d).

Complete lines 1a through 1i in column

affiliated group, enter the appropriate

(a) for any organization required to

Line 1j. If the filing organization

affiliated group totals from column (b),

complete Part II-A, but complete column

reported section 4911 tax on Form 4720

lines 1a through 1i, when completing lines

(b) only for affiliated groups.

for this year, answer “Yes.”

2a, 2c, 2d, and 2f.

If the filing organization belongs to an

Line 2. Line 2 is used to determine if the

Line 2a. For 2005 through 2007,

affiliated group, check Part II-A, box A

organization exceeded lobbying

enter the amount from line 41 of Schedule

and complete lines 1a through 1i.

•

expenditure limits during the 4-year

A, Part VI-A, filed for each year. For 2008,

Complete column (a) for the electing

averaging period.

enter the amount from Schedule C (Form

member of the group.

•

990 or 990-EZ), Part II-A, line 1f, filed for

Complete column (b) for the affiliated

Any organization for which a lobbying

each year.

group as a whole.

expenditure election under section 501(h)

Line 2c. For 2005 through 2007,

Affiliated group list. Provide in Part IV

was in effect for its tax year beginning in

enter the amount from line 38 of Schedule

a list showing each affiliated group

2008 must complete columns (a) through

A, Part VI-A, filed for each year. For 2008,

member’s name, address, EIN, and

(e) of lines 2a through 2f except in the

enter the amount from Schedule C (Form

expenses. Show which members made

following situations.

990 or 990-EZ), Part II-A, line 1c, for each

the election under section 501(h) and

1. An organization first treated as a

year.

which did not.

section 501(c)(3) organization in its tax

Include each electing member’s share

Line 2d. For 2005 through 2007,

year beginning in 2008 does not have to

of the excess lobbying expenditures on

enter the amount from line 42 of Schedule

complete any part of lines 2a through 2f.

the list.

A, Part VI-A filed for each year. For 2008,

2. An organization does not have to

enter the amount from Schedule C (Form

complete lines 2a through 2f for any

Non-electing members do not owe tax,

990 or 990-EZ), Part II-A, line 1g, for each

but remain subject to the general rule,

period before it is first treated as a section

year.

501(c)(3) organization.

which provides that no substantial part of

their activities may consist of carrying on

3. If 2008 is the first year for which an

Line 2f. For 2005 through 2007, enter

propaganda or otherwise trying to

organization’s section 501(h) election is

the amount from line 36 of Schedule A,

effective, that organization must complete

influence legislation.

Part VI-A, filed for each year. For 2008,

line 2a, columns (d) and (e). The

enter the amount from Schedule C (Form

If the filing organization checked box A

organization must then complete all of

990 or 990-EZ), Part II-A, line 1a, for each

and the limited control provisions apply to

column (e) to determine whether the

year.

the organizations, each member of the

amount on line 2c, column (e), is equal to

affiliated group should check box B and

Add each row of column (a) through

or less than the lobbying ceiling amount

complete column (a) only.

(d) and put the total in column (e).

calculated on line 2b and whether the

If the filing organization does not check

amount on line 2f is equal to or less than

Part II-B. Lobbying Activity

box A, do not check box B.

the grassroots ceiling amount calculated

Lines 1a – 1i are used to determine

Only section 501(c)(3) organizations that

on line 2e. The organization does not

whether any of the organization’s current

have not filed Form 5768 (election under

satisfy both tests if either its total lobbying

year lobbying expenditures are subject to

section 501(h)) or have revoked a

expenditures or grassroots lobbying

tax under section 4911. File Form 4720 if

previous election complete this section.

expenditures exceed the applicable

the organization needs to report and pay

ceiling amounts. When this occurs, all five

Part II-B provides a reporting format

the excise tax.

columns must be completed and a

for any section 501(c)(3) organization that

Line 1a. Enter the amount the

re-computation made unless exception 1

engaged in lobbying activities in its 2008

organization expended for grassroots

or 2 above applies.

tax year but did not make a section

lobbying communications.

4. If 2008 is the second or third tax

501(h) lobbying expenditure election for

year for which the organization’s first

Line 1b. Enter the amount the

that year by filing Form 5768. The Part

section 501(h) election is in effect, that

organization expended for direct lobbying

II-A instructions defining direct and

organization is required to complete only

communications.

grassroots lobbying activities by

the columns for the years in which the

organizations that made the section

Line 1c. Add lines 1a and 1b.

election has been in effect, entering the

501(h) election do not apply to

Line 1d. Enter all other amounts

totals for those years in column (e). The

organizations that complete Part II-B.

(excluding lobbying) the organization

organization must determine, for those 2

expended to accomplish its exempt

Non-electing section 501(c)(3)

or 3 years, whether the amount entered in

purpose.

organizations must complete both

column (e), line 2c, is equal to or less

columns (a) and (b) of Part II-B to show

Line 1e. Add lines 1c and 1d. This is

than the lobbying ceiling amount reported

lobbying expenditures paid or incurred.

the organization’s total exempt purpose

on line 2b, and whether the amount

expenditures.

entered in column (e), line 2f, is equal to

Note. A non-electing organization will

If there are no excess lobbying

or less than the grassroots ceiling amount

generally be regarded as lobbying if the

expenditures on either line 1h or 1i of

calculated on line 2e. The organization

organization either contacts, or urges the

column (b), treat each electing member of

does not satisfy both tests if either its total

public to contact, members of a legislative

the affiliated group as having no excess

lobbying expenditures or grassroots

body for the purpose of proposing,

lobbying expenditures. However, if there

lobbying expenditures exceed applicable

supporting, or opposing legislation or the

are excess lobbying expenditures on

ceiling amounts. When that occurs, all

government’s budget process; or

either line 1h or 1i of column (b), treat

five columns must be completed and a

advocates the adoption or rejection of

each electing member as having excess

re-computation made, unless exception 1

legislation.

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Instructions For Schedule C (Form 990 Or 990-Ez) 2008 Page 4

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