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

4911 excise tax on its excess lobbying

Direct lobbying communications

or research and making its results

expenditures. Moreover, if over a 4-year

(direct lobbying expenditures). A

available to the general public or segment

averaging period the organization's

direct lobbying communication is any

of members thereof, or to governmental

average annual total lobbying or

attempt to influence any legislation

bodies, officials, or employees isn’t

grassroots lobbying expenditures are

through communication with:

considered either a direct lobbying

more than 150% (1.50) of its dollar limits,

A member or employee of a legislative

communication or a grassroots lobbying

the organization will lose its exempt

or similar body;

communication. Nonpartisan analysis,

status.

A government official or employee

study, or research may advocate a

(other than a member or employee of a

particular position or viewpoint as long as

Exempt purpose expenditures. In

legislative body) who may participate in

there is a sufficiently full and fair

general, an exempt purpose expenditure

the formulation of the legislation, but if the

exposition of the pertinent facts to enable

is paid or incurred by an electing public

principal purpose of the communication is

the public or an individual to form an

charity to accomplish the organization's

to influence legislation only; or

independent opinion or conclusion.

exempt purpose.

The general public in a referendum,

A communication that responds to a

Exempt purpose expenditures include:

initiative, constitutional amendment, or

governmental body's or committee's

similar procedure.

1. The total amount paid or incurred

written request for technical advice isn’t a

for religious, charitable, scientific, literary,

A communication with a legislator or

direct lobbying communication.

or educational purposes, or for the

government official will be treated as a

A communication isn’t a direct lobbying

prevention of cruelty to children or

direct lobbying communication if the

communication if the communication is an

animals, or to foster national or

communication only:

appearance before, or communication

international amateur sports competition

Refers to specific legislation, and

with, any legislative body concerning

(not including providing athletic facilities or

Reflects a view on such legislation.

action by that body that might affect the

equipment, other than by qualified

organization's existence, its powers and

Grassroots lobbying

amateur sports organizations described in

duties, its tax-exempt status, or the

communications (grassroots lobbying

section 501(j)(2));

deductibility of contributions to the

expenditures). A grassroots lobbying

2. The allocable portion of

organization, as opposed to affecting

communication is any attempt to influence

administrative expenses paid or incurred

merely the scope of the organization's

any legislation through an attempt to affect

for the earlier purposes;

future activities.

the opinions of the general public or any

3. Amounts paid or incurred to try to

part of the general public.

Communication with members. For

influence legislation, whether or not for the

A communication is generally not a

purposes of section 4911, expenditures

purposes described in 1 earlier;

grassroots lobbying communication

for certain communications between an

4. Allowance for depreciation or

unless (in addition to referring to specific

organization and its members are treated

amortization; and

legislation and reflecting a view on that

more leniently than are communications to

legislation) it encourages recipients to

nonmembers. Expenditures for a

5. Fundraising expenditures, except

take action about the specific legislation.

communication that refers to, and reflects

that exempt purpose expenditures don’t

a view on, specific legislation aren’t

include amounts paid to or incurred for

A communication encourages a

lobbying expenditures if the

either the organization's separate

recipient to take action when it:

communication satisfies the following

fundraising unit or other organizations, if

1. States that the recipient should

requirements.

the amounts are primarily for fundraising.

contact legislators;

1. The communication is directed to

See Regulations section 56.4911-4(c)

2. States a legislator's address, phone

only members of the organization.

for a discussion of excluded expenditures.

number, or similar information;

2. The specific legislation the

3. Provides a petition, tear-off

Lobbying expenditures. Lobbying

communication refers to, and reflects a

postcard, or similar material for the

expenditures are expenditures (including

view on, is of direct interest to the

recipient to send to a legislator; or

allocable overhead and administrative

organization and its members.

costs) paid or incurred for the purpose of

4. Specifically identifies one or more

3. The communication doesn’t directly

attempting to influence legislation:

legislators who:

encourage the member to engage in direct

Through communication with any

a. Will vote on legislation;

lobbying (whether individually or through

member or employee of a legislative or

the organization).

b. Opposes the communication's view

similar body, or with any government

on the legislation;

4. The communication doesn’t directly

official or employee who may participate in

encourage the member to engage in

the formulation of the legislation, and

c. Is undecided about the legislation;

grassroots lobbying (whether individually

By attempting to affect the opinions of

d. Is the recipient's representative in

or through the organization).

the general public.

the legislature; or

To determine if an organization has

Expenditures for a communication

e. Is a member of the legislative

spent excessive amounts on lobbying, the

directed to only members that refers to,

committee that will consider the

organization must know which

and reflects a view on, specific legislation

legislation.

expenditures are lobbying expenditures

and that satisfies the requirements of

A communication described in item 4

and which aren’t lobbying expenditures.

items (1), (2), and (4), earlier (under

earlier generally is grassroots lobbying

An electing public charity's lobbying

Grassroots lobbying

only if, in addition to referring to and

expenditures for a year are the sum of its

communications), but doesn’t satisfy the

reflecting a view on specific legislation, it

expenditures during that year for direct

requirements of item (3), are treated as

is a communication that can’t meet the full

lobbying communications (direct lobbying

expenditures for direct lobbying.

and fair exposition test as nonpartisan

expenditures) plus grassroots lobbying

Expenditures for a communication

analysis, study, or research.

communications (grassroots lobbying

directed to only members that refers to,

expenditures).

and reflects a view on, specific legislation

Exceptions to lobbying. In general,

and satisfies the requirements of items (1)

engaging in nonpartisan analysis, study,

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

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Instructions For Schedule C (Form 990 Or 990-Ez) - 2016 Page 2

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