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2010

Department of the Treasury

Internal Revenue Service

Instructions for Schedule C

(Form 990 or 990-EZ)

Political Campaign and Lobbying Activities

•

A section 501(c) organization other

See Revenue Ruling 2007-41, for

Section references are to the Internal

than section 501(c)(3) must complete

guidelines on the scope of the tax

Revenue Code unless otherwise noted.

TIP

Parts I-A and I-C. Do not complete Part

law prohibition of campaign

I-B.

activities by section 501(c)(3)

General Instructions

•

organizations.

A section 527 organization that files the

Form 990 or Form 990-EZ must complete

Section 527 exempt function

Note. Terms in bold are defined in the

Part I-A. Do not complete Parts I-B and

activities. Section 527 exempt function

Glossary of the instructions for Form 990.

I-C.

activities include all functions that

Purpose of Schedule

influence or attempt to influence the

Part II. Lobbying activities. Part II is

selection, nomination, election, or

Schedule C (Form 990 or 990-EZ) is used

completed only by section 501(c)(3)

appointment of any individual to any

by:

organizations. If the organization

federal, state, or local public office or

•

Section 501(c) organizations, and

answered “Yes” to Form 990, Part IV, line

office in a political organization, or the

•

Section 527 organizations.

4, or Form 990-EZ, Part VI, line 47, then

election of Presidential or

complete the specific parts as follows.

These organizations must use

Vice-Presidential electors, whether or not

•

Schedule C (Form 990 or 990-EZ) to

A section 501(c)(3) organization that

such individual or electors are selected,

furnish additional information on political

elected to be subject to the lobbying

nominated, elected, or appointed.

campaign activities or lobbying

expenditure limitations of section 501(h)

Political expenditures. Any

activities, as those terms are defined

by filing Form 5768 and for which the

expenditures made for political

below for the various parts of this

election was valid and in effect for its tax

campaign activities are political

schedule.

year beginning in the year 2010, must

expenditures. An expenditure includes a

complete Part II-A. Do not complete Part

Who Must File

payment, distribution, loan, advance,

II-B.

deposit, or gift of money, or anything of

•

A section 501(c)(3) organization that

An organization that answered “Yes” on

value. It also includes a contract, promise,

has not elected to be subject to the

Form 990, Part IV, Checklist of Required

or agreement to make an expenditure,

lobbying expenditure limitations of section

Schedules, line 3, 4, or 5, must complete

whether or not legally enforceable.

501(h) (or has revoked such election by

the appropriate parts of Schedule C

Specific legislation. Specific

filing Form 5768 for which the revocation

(Form 990 or 990-EZ) and attach

legislation includes (1) legislation that

was valid and in effect for its tax year

Schedule C to Form 990. An organization

has already been introduced in a

beginning in the year 2010) must

that answered “Yes” on Form 990-EZ,

legislative body and (2) specific legislative

complete Part II-B. Do not complete Part

Part V, line 46 or Part VI, line 47, must

proposals that an organization either

II-A.

complete the appropriate parts of

supports or opposes.

Schedule C (Form 990 or 990-EZ) and

Part III. Section 6033(e) notice and

attach Schedule C to Form 990-EZ. An

Definitions (Part II-A)

reporting requirements and proxy tax.

organization that answered ‘‘Yes’’ to Form

Part III is completed by section 501(c)(4),

Definitions in this section are applicable

990-EZ, Part V, line 35a, because it is

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

only to Part II-A.

subject to the section 6033(e) notice and

organizations that received membership

Expenditure test. Under the

reporting requirements and proxy tax,

dues, assessments, or similar amounts as

expenditure test, there are limits both

must complete Part III of Schedule C

defined in Rev. Proc. 98-19, section 5.01,

upon the amount of the organization’s

(Form 990 or 990-EZ) and attach

as adjusted by Rev. Proc. 2009-50,

grassroots lobbying expenditures and

Schedule C to Form 990-EZ.

section 3.32, and that answered “Yes” to

upon the total amount of its direct

If an organization has an ownership

Form 990, Part IV, line 5 or ‘‘Yes’’ to Form

lobbying and grassroots lobbying

interest in a joint venture that conducts

990-EZ, line 35a, regarding the proxy tax.

expenditures. If the electing public charity

political campaign activities or

does not meet this expenditure test, it will

If an organization is not required to file

lobbying activities, the organization

owe a section 4911 excise tax on its

Form 990 or Form 990-EZ but chooses to

must report its share of such activity

excess lobbying expenditures. Moreover,

do so, it must file a complete return and

occurring in its tax year on Schedule C

if over a 4-year averaging period the

provide all of the information requested,

(Form 990 or 990-EZ). See Form 990,

organization’s average annual total

including the required schedules.

Appendix F, Disregarded Entities and

lobbying or grassroots lobbying

Joint Ventures.

expenditures are more than 150% of its

Definitions

Part I. Political campaign activities.

dollar limits, the organization will lose its

Part I is completed by section 501(c)

Definitions in this section are applicable

exempt status.

organizations and section 527

throughout this schedule, except where

Exempt purpose expenditures. In

organizations that file the Form 990 (and

noted. The following terms are defined in

general, an exempt purpose expenditure

Form 990-EZ). If the organization

the Glossary.

is paid or incurred by an electing public

answered “Yes” to Form 990, Part V, line

•

Joint venture.

charity to accomplish the organization’s

3, or Form 990-EZ, Part V, line 46, then

•

exempt purpose.

Legislation.

complete the specific parts as follows.

•

Lobbying activities.

•

Exempt purpose expenditures include:

A section 501(c)(3) organization must

•

Political campaign activities.

complete Parts I-A and I-B. Do not

1. The total amount paid or incurred

•

Tax year.

complete Part I-C.

for religious, charitable, scientific, literary,

Cat. No. 20374L

Instructions For Schedule C (Form 990 Or 990-Ez) - Political Campaign And Lobbying Activities - 2010

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