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

Grassroots lobbying communications

7.03 Exceptions. The records

1. The total amount paid or incurred

(“grassroots expenditures”). A

described in section 7.01 need not be

for religious, charitable, scientific, literary,

grassroots lobbying communication is any

independently maintained for Internal

or educational purposes, or for the

attempt to influence any legislation

Revenue Service use if:

prevention of cruelty to children or

through an attempt to affect the opinions

animals, or to foster national or

1. Substantially the same information

of the general public or any part of the

international amateur sports competition

that each of these records would provide

general public.

(not including providing athletic facilities

has been included in a report or reports

or equipment, other than by qualified

filed in accordance with law with an

A communication is generally not a

amateur sports organizations described in

agency or agencies of Federal, state, or

grassroots lobbying communication

section 501(j)(2)),

local government, and this information is

unless (in addition to referring to specific

2. The allocable portion of

current within one year, and

legislation and reflecting a view on that

administrative expenses paid or incurred

2. The school maintains copies of

legislation) it encourages recipients to

for the above purposes,

these reports from which this information

take action about the specific legislation.

3. Amounts paid or incurred to try to

is readily obtainable. Records described

A communication encourages a

influence legislation, whether or not for

in section 7.01 providing information not

recipient to take action when it:

the purposes described in 1 above,

included in reports filed with an agency or

4. Allowance for depreciation or

agencies must be maintained by the

(1) States that the recipient should

amortization, and

school for Service use.

contact legislators;

5. Fundraising expenditures, except

7.04 Failure to maintain records.

that exempt purpose expenditures do not

(2) States a legislator’s address, phone

Failure to maintain or to produce upon the

include amounts paid to or incurred for

number, etc.;

proper request the required records and

either the organization’s separate

information will create a presumption that

fundraising unit or other organizations, if

(3) Provides a petition, tear-off

the organization has failed to comply with

the amounts are primarily for fundraising.

postcard, or similar material for the

these guidelines.

recipient to send to a legislator; or

See also Regulations section

Part VI-A. Lobbying

56.4911-4(c) for a discussion of excluded

(4) Specifically identifies one or more

expenditures.

Expenditures by Electing

legislators who:

•

Will vote on legislation;

Lobbying expenditures. The term

Public Charities

•

Opposes the communication’s view on

“lobbying expenditures” means

the legislation;

Complete Part VI-A only for an eligible

expenditures paid or incurred for the

•

Is undecided about the legislation;

organization that elected to be subject to

purpose of attempting to influence

•

Is the recipient’s representative in the

the lobbying expenditure limitations of

legislation:

legislature; or

section 501(h) by filing Form 5768 and for

•

Is a member of the legislative

which the election was valid and in effect

•

Through communication with any

committee that will consider the

for its tax year beginning in the year 2004.

member or employee of a legislative

legislation.

A public charity that makes a valid

body, or with any government official or

A communication described in (4)

section 501(h) election may spend up to a

employee who may participate in the

above generally is grassroots lobbying

certain percentage of its “exempt purpose

formulation of the legislation, and

•

only if, in addition to referring to and

expenditures” to influence legislation

By attempting to affect the opinions of

reflecting a view on specific legislation, it

without incurring tax or losing its

the general public.

is a communication that cannot meet the

tax-exempt status.

To determine if an organization has

“full and fair exposition” test as

Expenditure test. Under the

spent excessive amounts on lobbying,

nonpartisan analysis, study, or research.

“expenditure test,” there are limits both

you must know which expenditures are

upon the amount of the organization’s

Communication with members. For

lobbying expenditures and which are not

purposes of section 4911, expenditures

grassroots lobbying expenditures and

lobbying expenditures. An electing public

for certain communications between an

upon the total amount of its direct

charity’s lobbying expenditures for a year

organization and its members are treated

lobbying and grassroots lobbying

are the sum of its expenditures during

more leniently than are communications

expenditures. If the electing public charity

that year for (1) direct lobbying

to nonmembers. Expenditures for a

does not meet this “expenditure test,” it

communications (“direct lobbying

communication that refers to, and reflects

will owe a section 4911 excise tax on its

expenditures”) plus (2) grassroots

a view on, specific legislation are not

excess lobbying expenditures. Moreover,

lobbying communications (“grassroots

lobbying expenditures if the

if over a 4-year averaging period the

expenditures”).

communication satisfies the following

organization’s average annual total

requirements:

lobbying or grassroots lobbying

Direct lobbying communications

expenditures are more than 150% of its

(“direct lobbying expenditures”). A

1. The communication is directed only

dollar limits, the organization will lose its

direct lobbying communication is any

to members of the organization,

exempt status.

attempt to influence any legislation

2. The specific legislation the

through communication with any:

communication refers to, and reflects a

The following terms are used in Part

•

Member or employee of a legislative

view on, is of direct interest to the

VI-A. See Regulations section 56.4911 for

body, or

organization and its members,

details.

•

Government official or employee (other

3. The communication does not

Exempt purpose expenditures. The

than a member or employee of a

directly encourage the member to engage

amount an electing public charity may

legislative body) who may participate in

in direct lobbying (whether individually or

spend on lobbying (without incurring tax)

the formulation of the legislation, but only

through the organization), and

is a scaled percentage of the

if the principal purpose of the

4. The communication does not

organization’s exempt purpose

communication is to influence legislation.

directly encourage the member to engage

expenditures. In general, an expenditure

in grassroots lobbying (whether

is an exempt purpose expenditure if it is

A communication with a legislator or

individually or through the organization).

paid or incurred by an electing public

government official will be treated as a

charity to accomplish the organization’s

direct lobbying communication, if, but only

Expenditures for a communication

exempt purpose.

if, the communication:

directed only to members that refers to,

•

Refers to specific legislation, and

In general, exempt purpose

and reflects a view on, specific legislation

•

expenditures are:

Reflects a view on such legislation.

and that satisfies the requirements of

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2004 Page 9

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