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

organization, such as a separate

election has been in effect, entering the

segregated fund or a political action

totals for those years in column (e). The

Line 1d. Enter all other amounts

committee (PAC). If additional space is

organization must determine, for those 2

(excluding lobbying) the organization

needed, enter information in Part IV.

or 3 years, whether the amount entered in

expended to accomplish its exempt

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

purpose.

Part II-A. Lobbying Activity

than the lobbying ceiling amount reported

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

on line 2b, and whether the amount

Only section 501(c)(3) organizations that

the organization’s total exempt purpose

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

have filed Form 5768 (election under

expenditures.

or less than the grassroots ceiling amount

section 501(h)) complete this section.

Lines 1h and 1i. If there are no

calculated on line 2e. The organization

Part II-A provides a reporting format

excess lobbying expenditures on either

does not satisfy both tests if either its total

for any section 501(c)(3) organization for

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

lobbying expenditures or grassroots

which the 501(h) lobbying expenditure

electing member of the affiliated group as

lobbying expenditures exceed applicable

election was valid and in effect during

having no excess lobbying expenditures.

ceiling amounts. When that occurs, all

2010 tax year, whether or not the

However, if there are excess lobbying

five columns must be completed and a

organization engaged in lobbying

expenditures on either line 1h or 1i of

re-computation made, unless exception 1

activities during that tax year. A public

column (b), treat each electing member

or 2 above applies. If the organization is

charity that makes a valid section 501(h)

as having excess lobbying expenditures.

not required to complete all five columns,

election may spend up to a certain

In such case, each electing member must

provide a statement explaining why in

percentage of its exempt purpose

file Form 4720, and must pay the tax on

Part IV. In the statement, show the ending

expenditures to influence legislation

its proportionate share of the affiliated

date of the tax year in which the

without incurring tax or losing its tax

group’s excess lobbying expenditures.

organization made its first section 501(h)

exempt status.

Enter the proportionate share in column

election and state whether or not that first

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

election was revoked before the start of

Affiliated groups. If the filing

In Part IV, provide the affiliated group list

the organization’s tax year that began in

organization belongs to an affiliated

described above. Show what amounts

2010.

group, check Part II-A, box A and

apply to each group member. To find a

complete lines 1a through 1i.

Note. If the organization belongs to an

•

member’s proportionate share, see

Complete column (a) for the electing

affiliated group, enter the appropriate

Regulations section 56.4911-8(d).

member of the group.

•

affiliated group totals from column (b),

Complete column (b) for the affiliated

Line 1j. If the filing organization

lines 1a through 1i, when completing lines

group as a whole.

reported section 4911 tax on Form 4720

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

for this year, answer “Yes.”

If the filing organization checked box A

Line 2a. For 2007, enter the amount

and the limited control provisions apply to

Line 2. Line 2 is used to determine if the

from line 41 of Schedule A, Part VI-A,

the organizations in the affiliated group,

organization exceeded lobbying

filed for each year. For 2008, 2009 and

each member of the affiliated group

expenditure limits during the 4-year

2010, enter the amount from Schedule C

should check box B and complete column

averaging period.

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

(a) only.

Any organization for which a lobbying

filed for each year.

If the filing organization does not check

expenditure election under section 501(h)

Line 2c. For 2007, enter the amount

box A, do not check box B.

was in effect for its tax year beginning in

from line 38 of Schedule A, Part VI-A,

2010 must complete columns (a) through

Affiliated group list. Provide in Part

filed for each year. For 2008, 2009 and

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

IV a list showing each affiliated group

2010, enter the amount from Schedule C

following situations.

member’s name, address, EIN, and

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

expenses. Show which members made

1. An organization first treated as a

for each year.

the election under section 501(h) and

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

Line 2d. For 2007, enter the amount

which did not.

year beginning in 2010 does not have to

from line 42 of Schedule A, Part VI-A filed

complete any part of lines 2a through 2f.

Include each electing member’s share

for each year. For 2008, 2009 and 2010,

2. An organization does not have to

of the excess lobbying expenditures on

enter the amount from Schedule C (Form

complete lines 2a through 2f for any

the list.

990 or 990-EZ), Part II-A, line 1g, for each

period before it is first treated as a section

Nonelecting members do not owe tax,

year.

501(c)(3) organization.

but remain subject to the general rule,

Line 2f. For 2007, enter the amount

3. If 2010 is the first year for which an

which provides that no substantial part of

organization’s section 501(h) election is

from line 36 of Schedule A, Part VI-A,

their activities may consist of carrying on

filed for each year. For 2008, 2009 and

effective, that organization must complete

propaganda or otherwise trying to

2010, enter the amount from Schedule C

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

influence legislation.

organization must then complete all of

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

Lines 1a through 1i. Complete lines 1a

for each year.

column (e) to determine whether the

through 1i in column (a) for any

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

Enter the total for each line in column

organization required to complete Part

or less than the lobbying ceiling amount

(e).

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

calculated on line 2b and whether the

affiliated groups.

amount on line 2f is equal to or less than

Part II-B. Lobbying Activity

the grassroots ceiling amount calculated

Lines 1a through 1i are used to

Only section 501(c)(3) organizations that

on line 2e. The organization does not

determine whether any of the

have not filed Form 5768 (election under

satisfy both tests if either its total lobbying

organization’s current year lobbying

section 501(h)) or have revoked a

expenditures or grassroots lobbying

expenditures are subject to tax under

previous election can complete this

expenditures exceed the applicable

section 4911. File Form 4720 if the

section.

ceiling amounts. When this occurs, all five

organization needs to report and pay the

columns must be completed and a

Part II-B provides a reporting format

excise tax.

re-computation made unless exception 1

for any section 501(c)(3) organization that

Line 1a. Enter the amount the

engaged in lobbying activities during

or 2 above applies.

organization expended for grassroots

4. If 2010 is the second or third tax

the 2010 tax year but did not make a

lobbying communications.

year for which the organization’s first

section 501(h) lobbying expenditure

Line 1b. Enter the amount the

section 501(h) election is in effect, that

election for that year by filing Form 5768.

organization expended for direct lobbying

organization is required to complete only

The distinction in Part II-A between direct

communications.

the columns for the years in which the

and grassroots lobbying activities by

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Instructions For Schedule C (Form 990 Or 990-Ez) - Political Campaign And Lobbying Activities - 2010 Page 4

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