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

Attached schedule. Attach a

attached schedule, show the amounts

equal to or less than the grassroots

schedule showing each affiliated group

that apply to each affiliated group and

ceiling amount calculated on line 49.

member’s name, address, EIN, and

to each group member.

5. The organization does not satisfy

expenses. Use the format of Part VI-A

both tests if either its total lobbying

If the parent organization has made

for this schedule. Show which members

expenditures or grassroots lobbying

the lobbying expenditure election, its

elected and which did not.

expenditures exceed the applicable

separate return must also show in

ceiling amounts. When this occurs, all

Include each electing member’s

column (a) the amounts that apply to

five columns must be completed and a

share of the excess lobbying

the affiliated group as a whole and, in

recomputation made unless exception 1

expenditures on the attached schedule.

column (b), the amounts that apply to

or 2 above applies.

Nonelecting members do not owe tax,

the parent organization only.

6. If 2001 is the second or third tax

but remain subject to the general rule,

A subordinate organization not

year for which the organization’s first

which provides that no substantial part

included in the group return would also

section 501(h) election is in effect, that

of their activities may consist of carrying

complete column (a) for the affiliated

organization is required to complete

on propaganda or otherwise trying to

group as a whole and column (b) for

only the columns for the years in which

influence legislation.

itself only.

the election has been in effect, entering

Limited control. If two

the totals for those years in column (e).

However, if “limited control” (defined

organizations are affiliated because

7. The organization must determine,

above) exists, complete only column (b)

their governing instruments provide that

for those 2 or 3 years, whether the

in Part VI-A of the group return for the

the decisions of one will control the

amount entered in column (e), line 47,

electing members in the group.

other only on national legislation, apply

is equal to or less than the lobbying

expenditures as follows:

Attach a schedule to show the

ceiling amount reported on line 46, and

1. Charge the controlling

amounts that apply to each electing

whether the amount entered in column

organization with its own lobbying

member.

(e), line 50, is equal to or less than the

expenditures and the national

grassroots ceiling amount calculated on

In the separate returns filed by the

legislation expenditures of the affiliated

line 49.

parent and by any subordinate

organizations.

8. The organization does not satisfy

organizations not included in the group

2. Do not charge the controlling

both tests if either its total lobbying

return, complete only column (b).

organization with other lobbying

expenditures or grassroots lobbying

expenditures (or other exempt-purpose

Lines 36 through 44. Complete

expenditures exceed applicable ceiling

expenditures) of the affiliated

column (b) for any organization using

amounts. When that occurs, all five

organizations.

Part VI-A but complete column (a) only

columns must be completed and a

3. Treat each local organization as

for affiliated groups.

recomputation made, unless exception

though it were not a member of an

1 or 2 above applies.

Use lines 36 through 44 to determine

affiliated group; i.e., the local

whether any of the organization’s

If the organization is not required to

organization should account for its own

current year lobbying expenditures are

complete all five columns, attach a

expenditures only and not any of the

subject to tax. File Form 4720 if you

statement explaining why. In the

national legislation expenditures

need to report and pay the excise tax.

statement, show the ending date of the

deemed as incurred by the controlling

tax year in which the organization made

organization in 1 above.

Lines 45 through 50. Lines 45

its first section 501(h) election and state

through 50 are used to determine if the

When this type of limited control is

whether or not that first election was

organization exceeded lobbying

present, each member of the affiliated

revoked before the start of the

expenditure limits during the 4-year

group should complete column (b) only.

organization’s tax year that began in

averaging period.

Group returns. Although

2001.

Any organization for which a

membership in a group affiliated for

Note: If the organization belongs to an

lobbying expenditure election under

lobbying does not establish eligibility to

affiliated group, enter the appropriate

section 501(h) was in effect for its tax

file a group return, a group return can

affiliated group totals from column (a),

year beginning in 2001 must complete

sometimes meet the filing requirements

lines 36 through 44, when completing

columns (a) through (e) of lines 45

of more than one member of an

lines 45, 47, 48, and 50.

through 50 except in the following

affiliated group. (General Instruction R

situations:

Line 45. Lobbying nontaxable

of the Instructions for Form 990 and

amount. For 1998 through 2001, enter

Form 990-EZ explains who may file a

1. An organization first treated as a

the amount from line 41 of the

group return.)

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

Schedule A (Form 990 or 990-EZ) filed

year beginning in 2001 does not have

If a central or parent organization

for each year.

to complete any part of lines 45 through

files a group return on behalf of two or

50.

more members of the group, complete

Line 47. Total lobbying

2. An organization does not have to

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

expenditures. For 1998 through 2001,

complete lines 45 through 50 for any

group as a whole. Include the central,

enter the amount from line 38 of the

period before it is first treated as a

Schedule A (Form 990 or 990-EZ) filed

electing, and nonelecting members.

section 501(c)(3) organization.

for each year.

In column (b), except on lines 43 and

3. If 2001 is the first year for which

44, include the amounts that apply to all

Line 48. Grassroots nontaxable

an organization’s first section 501(h)

electing members of the group if they

amount. For 1998 through 2001, enter

election is effective, that organization

are included in the group return.

the amount from line 42 of the

must complete line 45, columns (a) and

Schedule A (Form 990 or 990-EZ) filed

Attach the schedule described above

(e).

for each year.

under Affiliated groups. Show what

4. The organization must then

amounts apply to each group member.

complete all of column (e) to determine

Line 50. Grassroots lobbying

If the group return includes

whether the amount on line 47, column

expenditures. For 1998 through 2001,

organizations that belong to more than

(e), is equal to or less than the lobbying

enter the amount from line 36 of the

one affiliated group, show in column (a)

ceiling amount calculated on line 46

Schedule A (Form 990 or 990-EZ) filed

the totals for all such groups. On the

and whether the amount on line 50 is

for each year.

-11-

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

Instructions For Schedule A (Form 990 Or 990-Ez) - 2001 Page 11

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