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

of the expenditure to the extent possible,

organization engaged in lobbying

Line 1e. Add lines 1c and 1d. This is

and, where full recovery can’t be

activities during that tax year. A public

the organization's total exempt purpose

accomplished, by any additional

charity that makes a valid section 501(h)

expenditures.

corrective action that is necessary. (The

election may spend up to a certain

Lines 1h and 1i. If there are no

organization that made the political

percentage of its exempt purpose

excess lobbying expenditures on either

expenditure isn’t under any obligation to

expenditures to influence legislation

line 1h or 1i of column (b), treat each

attempt to recover the expenditure by

without incurring tax or losing its tax

electing member of the affiliated group as

legal action if the action would in all

exempt status.

having no excess lobbying expenditures.

probability not result in the satisfaction of

Affiliated groups. If the filing

However, if there are excess lobbying

or execution on a judgment.)

organization belongs to an affiliated group,

expenditures on either line 1h or 1i of

check Part II-A, box A and complete lines

column (b), treat each electing member as

Part I-C. Section 527

1a through 1i.

having excess lobbying expenditures. In

Exempt Function Activity

Complete column (a) for the electing

such case, each electing member must

of Section 501(c)

member of the group.

file Form 4720, and must pay the tax on its

Complete column (b) for the affiliated

proportionate share of the affiliated

Organizations Other Than

group as a whole.

group's excess lobbying expenditures.

Section 501(c)(3)

Enter the proportionate share in column

If the filing organization checked box A

(a) on line 1h or line 1i, or on both lines. In

and the limited control provisions apply to

Part IV, provide the affiliated group list

Note. Section 501(c) organizations that

the organizations in the affiliated group,

described earlier. Show what amounts

collect political contributions or member

each member of the affiliated group

apply to each group member. To find a

dues earmarked for a separate

should check box B and complete only

member's proportionate share, see

segregated fund, and promptly and

column (a).

Regulations section 56.4911-8(d).

directly transfer them to that fund as

If the filing organization doesn’t check

prescribed in Regulations section

box A, don’t check box B.

Line 1j. If the filing organization

1.527-6(e), don’t report them on lines 1 or

reported section 4911 tax on Form 4720

2. Such amounts are reported on line 5e.

Affiliated group list. Provide in Part

for this year, answer “Yes.”

IV a list showing each affiliated group

Line 1. Enter the amount of the

member's name, address, EIN, and

Line 2. Line 2 is used to determine if the

organization's funds that it expended for

expenses. Show which members made

organization exceeded lobbying

section 527 exempt function activities.

the election under section 501(h) and

expenditure limits during the 4-year

See Regulations section 1.527-6(b).

which didn’t.

averaging period.

Line 2. Enter the amount of the

Include each electing member's share

Any organization for which a lobbying

organization's funds that it transferred to

of the excess lobbying expenditures on

expenditure election under section 501(h)

other organizations, including a separate

the list.

was in effect for its tax year beginning in

segregated section 527(f)(3) fund created

2017 must complete columns (a) through

Nonelecting members don’t owe tax,

by the organization, for section 527

(e) of lines 2a through 2f except in the

but remain subject to the general rule,

exempt function activity.

following situations.

which provides that no substantial part of

Line 3. Total exempt function

their activities may consist of carrying on

1. An organization first treated as a

expenditures. Add lines 1 and 2 and enter

propaganda or otherwise trying to

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

on line 3 and on Form 1120-POL, line 17b.

influence legislation.

year beginning in 2017 doesn’t have to

complete any part of lines 2a through 2f.

Line 4. If the filing organization reported

Lines 1a through 1i. Complete lines 1a

2. An organization doesn’t have to

taxable political expenditures on Form

through 1i in column (a) for any

complete lines 2a through 2f for any

1120-POL for this year, answer “Yes.”

organization required to complete Part

period before it is first treated as a section

II-A, but complete column (b) for only

Line 5. In columns (a), (b), and (c), enter

501(c)(3) organization.

affiliated groups.

the name, address and employer

3. If 2017 is the first year for which an

Lines 1a through 1i are used to

identification number (EIN) of each

organization's section 501(h) election is

determine whether any of the

section 527 political organization to which

effective, that organization must complete

organization's current year lobbying

payments were made. In column (d), enter

line 2a, columns (d) and (e). The

expenditures are subject to tax under

the amount paid from the filing

organization must then complete all of

section 4911. File Form 4720 if the

organization's funds. In column (e), enter

column (e) to determine whether the

organization needs to report and pay the

the amount of political contributions

amount on line 2c, column (e), is equal to

excise tax.

received and promptly and directly

or less than the lobbying ceiling amount

delivered to a separate political

Line 1a. Enter the amount the

calculated on line 2b and whether the

organization, such as a separate

organization expended for grassroots

amount on line 2f is equal to or less than

segregated fund or a political action

lobbying communications. See

the grassroots ceiling amount calculated

committee (PAC). If additional space is

Regulations section 56.4911-6(b).

on line 2e. The organization doesn’t

needed, enter information in Part IV.

satisfy both tests if either its total lobbying

Line 1b. Enter the amount the

Part II-A. Lobbying Activity

expenditures or grassroots lobbying

organization expended for direct lobbying

expenditures exceed the applicable

communications. See Regulations

Only section 501(c)(3) organizations that

ceiling amounts. When this occurs, all five

section 56.4911-6(b).

have filed Form 5768 (election under

columns must be completed and a

section 501(h)) complete this section.

Line 1c. Add lines 1a and 1b.

re-computation made unless exception 1

or 2 earlier applies.

Part II-A provides a reporting format for

Line 1d. Enter all other amounts

any section 501(c)(3) organization for

4. If 2017 is the second or third tax

(excluding lobbying) the organization

which the 501(h) lobbying expenditure

year for which the organization's first

expended to accomplish its exempt

election was valid and in effect during the

section 501(h) election is in effect, that

purpose.

2017 tax year, whether or not the

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

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Instructions For Schedule C (Form 990 Or 990-Ez) - 2016 Page 4

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