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

VI-A but complete column (a) only for

statement, show the ending date of the

(e.g., even lobbying activities carried out

affiliated groups.

tax year in which the organization made

by unreimbursed volunteers).

its first section 501(h) election and state

Use lines 36 through 44 to determine

For example, the activities should be

whether or not that first election was

whether any of the organization’s current

included in the attached statement if an

revoked before the start of the

year lobbying expenditures are subject to

organization (either through its employees

organization’s tax year that began in

tax. File Form 4720 if you need to report

or volunteers) attempts to influence

2004.

and pay the excise tax.

legislation in any of the following ways:

Note. If the organization belongs to an

•

Lines 45 through 50. Lines 45

Sending letters or publications to

affiliated group, enter the appropriate

through 50 are used to determine if the

government officials or legislators,

affiliated group totals from column (a),

•

organization exceeded lobbying

Meeting with or calling government

lines 36 through 44, when completing

expenditure limits during the 4-year

officials or legislators,

lines 45, 47, 48, and 50.

•

averaging period.

Sending or distributing letters or

Line 45. Lobbying nontaxable

publications (including newsletters,

Any organization for which a lobbying

amount. For 2001 through 2004, enter

brochures, etc.) to members or to the

expenditure election under section 501(h)

the amount from line 41 of the

general public, or

was in effect for its tax year beginning in

•

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

Using direct mail, placing

2004 must complete columns (a) through

each year.

advertisements, issuing press releases,

(e) of lines 45 through 50 except in the

Line 47. Total lobbying

holding news conferences, or holding

following situations.

expenditures. For 2001 through 2004,

rallies or demonstrations.

1. An organization first treated as a

enter the amount from line 38 of the

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

Part VII. Information

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

year beginning in 2004 does not have to

each year.

complete any part of lines 45 through 50.

Regarding Transfers To

Line 48. Grassroots nontaxable

2. An organization does not have to

and Transactions and

amount. For 2001 through 2004, enter

complete lines 45 through 50 for any

the amount from line 42 of the

period before it is first treated as a section

Relationships With

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

501(c)(3) organization.

each year.

Noncharitable Exempt

3. If 2004 is the first year for which an

organization’s first section 501(h) election

Line 50. Grassroots lobbying

Organizations

is effective, that organization must

expenditures. For 2001 through 2004,

complete line 45, columns (a) and (e).

Part VII is used to report direct and

enter the amount from line 36 of the

indirect transfers to (line 51a), direct and

The organization must then complete

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

indirect transactions with (line 51b), and

all of column (e) to determine whether the

each year.

relationships with (line 52) any other

amount on line 47, column (e), is equal to

noncharitable exempt organization

Part VI-B. Lobbying

or less than the lobbying ceiling amount

(section 6033(b)(9)).

calculated on line 46 and whether the

Activity by Nonelecting

amount on line 50 is equal to or less than

A “noncharitable exempt organization”

the grassroots ceiling amount calculated

Public Charities

is an organization exempt under section

on line 49.

501(c) (that is not exempt under section

The Part VI-A instructions defining direct

The organization does not satisfy both

501(c)(3)), or a political organization

and grassroots lobbying activities by

tests if either its total lobbying

described in section 527.

organizations that made the section

expenditures or grassroots lobbying

501(h) election do not apply to

For purposes of these instructions, the

expenditures exceed the applicable

nonelecting organizations that complete

section 501(c)(3) organization completing

ceiling amounts. When this occurs, all five

Part VI-B.

this Schedule A (Form 990 or 990-EZ) is

columns must be completed and a

referred to as the “reporting organization.”

Part VI-B provides a reporting format

recomputation made unless exception 1

for any organization that engaged in

or 2 above applies.

A noncharitable exempt organization is

lobbying activities in its 2004 tax year but

4. If 2004 is the second or third tax

related to or affiliated with the reporting

did not make a section 501(h) lobbying

organization if:

year for which the organization’s first

expenditure election for that year by filing

section 501(h) election is in effect, that

1. The two organizations share some

Form 5768.

organization is required to complete only

element of common control, or

the columns for the years in which the

A nonelecting public charity will

2. A historic and continuing

election has been in effect, entering the

generally be regarded as lobbying if the

relationship exists between the two

totals for those years in column (e).

organization either: (1) contacts, or urges

organizations.

the public to contact, members of a

The organization must determine, for

legislative body for the purpose of

A noncharitable exempt organization

those 2 or 3 years, whether the amount

proposing, supporting, or opposing

is unrelated to the reporting organization

entered in column (e), line 47, is equal to

legislation or the government’s budget

if:

or less than the lobbying ceiling amount

process; or (2) advocates the adoption or

reported on line 46, and whether the

1. The two organizations share no

rejection of legislation.

amount entered in column (e), line 50, is

element of common control, and

equal to or less than the grassroots

Nonelecting organizations must

2. A historic and continuing

ceiling amount calculated on line 49.

complete Part VI-B to show lobbying

relationship does not exist between the

expenditures paid or incurred.

two organizations.

The organization does not satisfy both

tests if either its total lobbying

In item g, “direct contact” means a

An “element of common control” is

expenditures or grassroots lobbying

personal telephone call or visit

present when one or more of the officers,

expenditures exceed applicable ceiling

with legislators, their staffs, or

CAUTION

directors, or trustees of one organization

amounts. When that occurs, all five

government officials.

are elected or appointed by the officers,

columns must be completed and a

These nonelecting organizations must

directors, trustees, or members of the

recomputation made, unless exception 1

also attach a statement giving a detailed

other. An element of common control is

or 2 above applies.

description of their lobbying activities. The

also present when more than 25% of the

If the organization is not required to

detailed description of lobbying activities

officers, directors, or trustees of one

complete all five columns, attach a

should include all lobbying activities,

organization serve as officers, directors,

statement explaining why. In the

whether expenses are incurred or not

or trustees of the other organization.

-11-

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2004 Page 11

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