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organizations that made the section

managers under section 4912, unless

inflation). See Rev. Proc. 2009-50,

501(h) election does not apply to

abated.

section 3.32.

organizations that complete Part II-B.

5. Any organization that receives a

Line 2d. If the filing organization

private letter ruling from the IRS stating

Nonelecting section 501(c)(3)

reported a section 4912 tax on a Form

that the organization satisfies the section

organizations must complete both

4720 for this year, answer “Yes.”

6033(e)(3) exception.

columns (a) and (b) of Part II-B to show

Part III. Section 6033(e)

6. Any organization that keeps

lobbying expenditures paid or incurred.

records to substantiate that 90% or more

Note. A nonelecting organization will

Notice and Reporting

of its members cannot deduct their dues

generally be regarded as engaging in

(or similar amounts) as business

Requirements and Proxy

lobbying activity if the organization either

expenses whether or not any part of their

contacts, or urges the public to contact,

Tax

dues are used for lobbying purposes.

members of a legislative body for the

7. Any organization that is not a

Only certain organizations that are

purpose of proposing, supporting, or

membership organization.

tax-exempt under:

opposing legislation or the government’s

•

Section 501(c)(4) (social welfare

budget process; or advocates the

Special rules treat affiliated social

organizations),

adoption or rejection of legislation.

•

welfare organizations, agricultural

Section 501(c)(5) (agricultural and

Organizations should answer “Yes” or

and horticultural organizations,

horticultural organizations), or

CAUTION

“No” in column (a) to questions 1a

•

and business leagues as parts of a single

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

through 1i and describe in Part IV the

organization for purposes of meeting the

are subject to the section 6033(e) notice

activities the organization conducted

nondeductible dues exception. See Rev.

and reporting requirements, and a

(through its employees or volunteers)

Proc. 98-19, section 5.03, 1998-1 C.B.

potential proxy tax. These organizations

attempting to influence legislation.

547.

must report their total lobbying expenses,

Examples of activities include:

political expenses, and membership dues,

Line 2. Answer “Yes” for line 2 if the

•

Sending letters or publications to

or similar amounts.

organization satisfies the following criteria

government officials or legislators,

of the $2,000 in-house lobbying

•

Section 6033(e) requires certain

Meeting with or calling government

exception.

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

officials or legislators,

1. The organization did not make any

organizations to tell their members what

•

Sending or distributing letters or

political expenditures or foreign lobbying

portion of their membership dues were

publications (including newsletters,

expenditures during the 2010 reporting

allocable to the political or lobbying

brochures, etc.) to members or to the

year.

activities of the organization. If an

general public, or

2. The organization made lobbying

organization does not give its members

•

Using direct mail, placing

expenditures during the 2010 reporting

this information, then the organization is

advertisements, issuing press releases,

year consisting only of in-house direct

subject to a proxy tax. This tax is reported

holding news conferences, or holding

lobbying expenditures totaling $2,000 or

on Form 990-T.

rallies or demonstrations.

less, but excluding:

For lines 1c through 1i, enter in column

Part III-A

a. Any allocable overhead expenses,

(b) the lobbying expenditures paid or

and

incurred. Enter total expenditures on

Line 1. Answer “Yes” if any of the

b. All direct lobbying expenses of any

column (b), line 1j.

following exemptions from the reporting

local council regarding legislation of direct

and notice requirements apply. By doing

interest to the organization or its

Line 1f. Grants to other organizations

so, the organization is declaring that

members.

are amounts from the organization’s

substantially all of its membership dues

funds given to another organization for

were nondeductible.

If the organization’s in-house direct

the purpose of assisting the other

lobbying expenditures during the 2010

1. Local associations of employees’

organization conducting lobbying

reporting year were $2,000 or less, but

and veterans’ organizations described in

activities.

the organization also paid or incurred

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

Line 1g. Direct contact is a personal

other lobbying or political expenditures

501(c)(4) social welfare organizations.

telephone call or visit with legislators,

during the 2010 reporting year, it should

2. Labor unions and other labor

their staffs, or government officials.

answer “No” to question 2. If the

organizations described in section

Line 1h. Rallies, demonstrations,

organization is required to complete Part

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

seminars, conventions, speeches, and

III-B, the $2,000 or less of in-house direct

agricultural and horticultural

lectures are examples of public forums

lobbying expenditures should not be

organizations.

conducted directly by the organization or

included in the total on line 2a, of Part

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

paid for out of the organization’s funds.

III-B.

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

organizations that receive more than 90%

Line 3. Answer “Yes” for line 3 if the

Line 1i. Provide in Part IV a detailed

of their dues from:

organization on its prior year report

description of any other activity that the

a. Organizations exempt from tax

agreed to carryover an amount to be

organization engaged in to influence

under section 501(a), other than section

legislation. The description should

included in the current year’s reasonable

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

include all lobbying activities, whether

estimate of lobbying and political

501(c)(6) organizations,

expenses.

expenses are incurred or not (for

b. State or local governments,

example, even lobbying activities carried

Complete Part III-B only if the

c. Entities whose income is exempt

out by unreimbursed volunteers).

organization answered “No” to both line 1

from tax under section 115, or

and line 2 or if the organization answered

Line 2a. Answer “Yes” if a section

d. Organizations described in 1 or 2,

“Yes” to line 3.

501(c)(3) organization ceased to be

above.

described as a section 501(c)(3)

Part III-B. Dues Notices,

4. Section 501(c)(4) and section

organization because the amount on line

501(c)(5) organizations that receive more

1j was substantial.

Reporting Requirements,

than 90% of their annual dues from:

Line 2b. Enter the amount of taxes, if

a. Persons,

and Proxy Tax

any, imposed on the organization itself

b. Families, or

under section 4912, unless abated.

c. Entities,

Dues notices. An organization that

Line 2c. Enter the amount of taxes, if

who each paid annual dues of $101 or

checked “No” for both Part III-A, lines 1

any, imposed on the organization

less in 2010 (adjusted annually for

and 2, and is thus responsible for

-5-

Instructions For Schedule C (Form 990 Or 990-Ez) - Political Campaign And Lobbying Activities - 2010 Page 5

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