Instructions For Schedule A (Form 990 Or 990-Ez)

paragraphs 1, 2, and 4, but does not

to the other organization’s governing

national legislation expenditures of the

satisfy the requirements of paragraph 3,

board to cause or prevent action on

affiliated organizations.

•

are treated as expenditures for direct

legislative issues (interlocking

Do not charge the controlling

lobbying.

directorate).

organization with other lobbying

expenditures (or other exempt-purpose

Expenditures for a communication

If you are not sure whether your group

expenditures) of the affiliated

directed only to members that refers to,

is affiliated, you may ask the IRS for a

organizations, and

and reflects a view on, specific legislation

ruling letter. There is a fee for this ruling.

•

Treat each local organization as though

and satisfies the requirements of

For Information on requesting rulings,

it were not a member of an affiliated

paragraphs 1 and 2, but does not satisfy

see Rev. Proc. 2004-4, 2004-1 I.R.B. 125.

group; i.e., the local organization should

the requirements of paragraph 4, are

Members of an affiliated group

account for its own expenditures only and

treated as grassroots expenditures,

measure both lobbying expenditures and

not any of the national legislation

whether or not the communication

permitted lobbying expenditures on the

expenditures deemed as incurred by the

satisfies the requirements of paragraph 3.

basis of the affiliated group’s tax year. If

controlling organization.

See Regulations section 56.4911-5 for

all members of the affiliated group have

When this type of limited control is

details.

the same tax year, that year is the tax

present, each member of the affiliated

There are special rules regarding

year of the affiliated group.

group should complete column (b) only.

certain paid mass media advertisements

However, if the affiliated group’s

Group returns. Although membership

about highly publicized legislation;

members have different tax years, the tax

in a group affiliated for lobbying does not

allocation of mixed purpose expenditures;

year of the affiliated group is the calendar

establish eligibility to file a group return, a

certain transfers treated as lobbying

year, unless all the members of the group

group return can sometimes meet the

expenditures and special rules regarding

elect otherwise. See Regulations section

filing requirements of more than one

lobbying on referenda, ballot initiatives,

56.4911-7(e)(3).

member of an affiliated group. (General

and similar procedures (see Regulations

If the electing organization belongs to

Instruction R of the Instructions for Form

sections 56.4911-2 and -3).

an affiliated group, complete in Part VI-A,

990 and Form 990-EZ explains who may

Legislation. In general, the term

lines 36 through 44:

file a group return.)

“legislation” includes Acts, bills,

•

Column (a) for the affiliated group as a

If a central or parent organization files

resolutions, or similar items. “Specific

whole, and

a group return on behalf of two or more

legislation” includes both legislation that

•

Column (b) for the electing member of

members of the group, complete

has already been introduced in a

the group.

legislative body and a specific legislative

column (a), Part VI-A, for the affiliated

If there are no excess lobbying

proposal that the organization either

group as a whole. Include the central,

expenditures on either line 43 or 44 of

supports or opposes.

electing, and nonelecting members.

column (a), treat each electing member

Exceptions to the definitions of direct

In column (b), except on lines 43 and

as having no excess lobbying

lobbying communication and/or

44, include the amounts that apply to all

expenditures.

grassroots lobbying communication.

electing members of the group if they are

However, if there are excess lobbying

In general, engaging in nonpartisan

included in the group return.

expenditures on either line 43 or 44 of

analysis, study, or research and making

Attach the schedule described above

column (a), treat each electing member

its results available to the general public

under Affiliated groups. Show what

as having excess lobbying expenditures.

or segment or members thereof, or to

amounts apply to each group member.

In such case, each electing member must

governmental bodies, officials, or

If the group return includes

file Form 4720, Return of Certain Excise

employees is not considered either a

organizations that belong to more than

Taxes on Charities and Other Persons

direct lobbying communication or a

one affiliated group, show in column (a)

Under Chapters 41 and 42 of the Internal

grassroots lobbying communication.

the totals for all such groups. On the

Revenue Code, and must pay the tax on

Nonpartisan analysis, study, or research

attached schedule, show the amounts

its proportionate share of the affiliated

may advocate a particular position or

that apply to each affiliated group and to

group’s excess lobbying expenditures.

viewpoint as long as there is a sufficiently

each group member.

full and fair exposition of the pertinent

To find a member’s proportionate

facts to enable the public or an individual

share, see Regulations section

If the parent organization has made

to form an independent opinion or

56.4911-8(d). Enter the proportionate

the lobbying expenditure election, its

conclusion.

share in column (b) on line 43 or line 44,

separate return must also show in column

or on both lines.

(a) the amounts that apply to the affiliated

A communication that responds to a

group as a whole and, in column (b), the

governmental body’s or committee’s

Attached schedule. Attach a

amounts that apply to the parent

written request for technical advice is not

schedule showing each affiliated group

organization only.

a direct lobbying communication.

member’s name, address, EIN, and

expenses. Use the format of Part VI-A for

A subordinate organization not

A communication is not a direct

this schedule. Show which members

included in the group return would also

lobbying communication if the

elected and which did not.

complete column (a) for the affiliated

communication is an appearance before,

group as a whole and column (b) for itself

or communication with, any legislative

Include each electing member’s share

only.

body whose action might affect the

of the excess lobbying expenditures on

organization’s existence, its powers and

the attached schedule. Nonelecting

However, if “limited control” (defined

duties, its tax-exempt status, or the

members do not owe tax, but remain

above) exists, complete only column (b)

deductibility of contributions to the

subject to the general rule, which

in Part VI-A of the group return for the

organization, as opposed to affecting

provides that no substantial part of their

electing members in the group.

merely the scope of the organization’s

activities may consist of carrying on

Attach a schedule to show the

future activities.

propaganda or otherwise trying to

amounts that apply to each electing

Affiliated groups. Treat members of an

influence legislation.

member.

affiliated group as a single organization to

Limited control. If two organizations

In the separate returns filed by the

measure lobbying expenditures and

are affiliated because their governing

parent and by any subordinate

permitted lobbying expenditures.

instruments provide that the decisions of

organizations not included in the group

Two organizations are affiliated if one

one will control the other only on national

return, complete only column (b).

is bound by the other organization’s

legislation, apply expenditures as follows:

•

decisions on legislative issues (control) or

Charge the controlling organization with

Lines 36 through 44. Complete

if enough representatives of one belong

its own lobbying expenditures and the

column (b) for any organization using Part

-10-

Instructions for Schedule A (Form 990 or 990-EZ)

Instructions For Schedule A (Form 990 Or 990-Ez) - 2004 Page 10

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