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

organization is required to complete only

organizations that made the section

Line 2b. Enter the amount of taxes, if

the columns for the years in which the

501(h) election doesn’t apply to

any, imposed on the organization itself

election has been in effect, entering the

organizations that complete Part II-B.

under section 4912, unless abated.

totals for those years in column (e). The

Nonelecting section 501(c)(3)

Line 2c. Enter the amount of taxes, if any,

organization must determine, for those 2

organizations must complete Part II-B,

imposed on the organization managers

or 3 years, whether the amount entered in

columns (a) and (b), to show lobbying

under section 4912, unless abated.

column (e), line 2c, is equal to or less than

expenditures paid or incurred.

the lobbying ceiling amount reported on

Line 2d. If the filing organization reported

line 2b, and whether the amount entered

a section 4912 tax on a Form 4720 for this

Note. A nonelecting organization will

in column (e), line 2f, is equal to or less

year, answer “Yes.”

generally be regarded as engaging in

than the grassroots ceiling amount

lobbying activity if the organization either

calculated on line 2e. The organization

Part III. Section 6033(e)

contacts, or urges the public to contact,

doesn’t satisfy both tests if either its total

Notice and Reporting

members of a legislative body for the

lobbying expenditures or grassroots

purpose of proposing, supporting, or

Requirements and Proxy

lobbying expenditures exceed applicable

opposing legislation or the government's

ceiling amounts. When that occurs, all five

Tax

budget process; or advocates the

columns must be completed and a

adoption or rejection of legislation.

Only certain organizations that are

re-computation made, unless exception 1

tax-exempt under:

or 2 earlier applies. If the organization isn’t

Organizations should answer “Yes” or

Section 501(c)(4) (social welfare

required to complete all five columns,

“No” in column (a) to questions 1a through

organizations),

provide a statement explaining why in Part

1i and provide in Part IV a detailed

Section 501(c)(5) (agricultural and

IV. In the statement, show the ending date

description of any activities the

horticultural organizations), or

of the tax year in which the organization

organization engaged in (through its

Section 501(c)(6) (business leagues),

made its first section 501(h) election and

employees or volunteers) to influence

are subject to the section 6033(e) notice

state whether or not that first election was

legislation. The description should include

and reporting requirements, and to a

revoked before the start of the

all lobbying activities, whether expenses

potential proxy tax. These organizations

organization's tax year that began in 2017.

were incurred or not. Examples of such

must report their total lobbying expenses,

lobbying activities include:

political expenses, and membership dues,

Note. If the organization belongs to an

Sending letters or publications to

or similar amounts.

affiliated group, enter the appropriate

government officials or legislators,

affiliated group totals from column (b),

Meeting with or calling government

Section 6033(e) requires certain

lines 1a through 1i, when completing lines

officials or legislators,

section 501(c)(4), (5), and (6)

2a, 2c, 2d, and 2f.

Sending or distributing letters or

organizations to tell their members what

publications (including newsletters,

Line 2a. For 2014, 2015, 2016, and

portion of their membership dues were

brochures, etc.) to members or to the

2017, enter the amount from Schedule C

allocable to the political or lobbying

general public, or

(Form 990 or 990-EZ), Part II-A, line 1f,

activities of the organization. If an

Using direct mail, placing

filed for each year.

organization doesn’t give its members this

advertisements, issuing press releases,

information, then the organization is

Line 2c. For 2014, 2015, 2016, and

holding news conferences, or holding

subject to a proxy tax. This tax is reported

2017, enter the amount from Schedule C

rallies or demonstrations.

on Form 990-T.

(Form 990 or 990-EZ), Part II-A, line 1c,

For lines 1c through 1i, enter in column

for each year.

Part III-A

(b) the lobbying expenditures paid or

Line 2d. For 2014, 2015, 2016, and

incurred. Enter total expenditures on

Line 1. Answer “Yes” if any of the

2017, enter the amount from Schedule C

column (b), line 1j.

following exemptions from the reporting

(Form 990 or 990-EZ), Part II-A, line 1g,

Line 1f. Grants to other organizations are

and notice requirements apply. By doing

for each year.

amounts from the organization's funds

so, the organization is declaring that

given to another organization for the

Line 2f. For 2014, 2015, 2016, and

substantially all of its membership dues

purpose of assisting the other organization

2017, enter the amount from Schedule C

were nondeductible.

conducting lobbying activities.

(Form 990 or 990-EZ), Part II-A, line 1a,

1. Local associations of employees'

for each year.

Line 1g. Direct contact is a personal

and veterans' organizations described in

Enter the total for each line in column

telephone call or visit with legislators, their

section 501(c)(4), but not section 501(c)

(e).

staffs, or government officials.

(4) social welfare organizations.

2. Labor unions and other labor

Line 1h. Rallies, demonstrations,

Part II-B. Lobbying Activity

organizations described in section 501(c)

seminars, conventions, speeches, and

Only section 501(c)(3) organizations that

(5), but not section 501(c)(5) agricultural

lectures are examples of public forums

haven’t filed Form 5768 (election under

and horticultural organizations.

conducted directly by the organization or

section 501(h)) or have revoked a

paid for out of the organization's funds.

3. Section 501(c)(4), section 501(c)

previous election can complete this

(5), and section 501(c)(6) organizations

Line 1i. Answer “Yes” if the organization

section.

that receive more than 90% (0.9) of their

engaged in any other activities to influence

dues from:

Part II-B provides a reporting format for

legislation.

any section 501(c)(3) organization that

a. Organizations exempt from tax

Line 2a. Answer “Yes” if a section 501(c)

engaged in lobbying activities during the

under section 501(a), other than section

(3) organization ceased to be described

2017 tax year but didn’t make a section

501(c)(4), section 501(c)(5), and section

as a section 501(c)(3) organization

501(h) lobbying expenditure election for

501(c)(6) organizations,

because the amount on line 1j was

that year by filing Form 5768. The

b. State or local governments,

substantial.

distinction in Part II-A between direct and

c. Entities whose income is excluded

grassroots lobbying activities by

from gross income under section 115, or

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

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Instructions For Schedule C (Form 990 Or 990-Ez) - 2016 Page 5

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