Instructions For Schedule C (Form 990 Or 990-Ez) 2008 printable pdf download

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Department of the Treasury

Internal Revenue Service

Instructions for Schedule C

(Form 990 or 990-EZ)

Political Campaign and Lobbying Activities

organizations. If the organization

Presidential or Vice-Presidential electors,

Section references are to the Internal

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

whether or not such individual or electors

Revenue Code unless otherwise noted.

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

are selected, nominated, elected, or

•

A section 501(c)(3) organization that

appointed.

General Instructions

elected to be subject to the lobbying

Political expenditures. Any

expenditure limitations of section 501(h)

Note. Terms in bold are defined in the

expenditure for political campaign

by filing Form 5768 and for which the

Glossary of the instructions for Form 990.

activities are political expenditures. An

election was valid and in effect for its tax

expenditure includes a payment,

year beginning in the year 2008, must

Purpose of Schedule

distribution, loan, advance, deposit, or gift

complete Part II-A. Do not complete Part

of money, or anything of value. It also

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

II-B.

includes a contract, promise, or

•

by:

A section 501(c)(3) organization that

•

agreement to make an expenditure,

Section 501(c) organizations, and

has not elected to be subject to the

•

whether or not legally enforceable.

Section 527 organizations.

lobbying expenditure limitations of section

Specific legislation. Specific

501(h) (or has revoked such election by

These organizations must use

legislation includes (1) legislation that has

filing Form 5768 for which the revocation

Schedule C (Form 990 or 990-EZ) to

already been introduced in a legislative

was valid and in effect for its tax year

furnish additional information on political

body and (2) specific legislative proposals

beginning in the year 2008) must

campaign activities or lobbying

that an organization either supports or

complete Part II-B. Do not complete Part

activities, as those terms are defined

opposes.

II-A.

below for the various parts of this

schedule.

Part III. Section 6033(e) notice and

Definitions (Part II-A)

reporting requirements and proxy tax.

Who Must File

Definitions in this section are applicable

Part III is to be completed by section

only to Part II-A.

Any organization that answered “Yes” on

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

Expenditure test. Under the

Form 990, Part IV, Checklist of Required

501(c)(6) organizations that received

expenditure test, there are limits both

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

membership dues, assessments, or

upon the amount of the organization’s

and attach Schedule C (Form 990 or

similar amounts as defined in Rev. Proc.

grassroots lobbying expenditures and

990-EZ) to Form 990, and complete the

98-19, and that answered “Yes” to Form

upon the total amount of its direct

applicable parts relating to those lines.

990, Part IV, line 5.

lobbying and grassroots lobbying

Any organization that answered “Yes” on

If an organization is not required to file

expenditures. If the electing public charity

Form 990-EZ, Part VI, lines 46 or 47,

Form 990 or Form 990-EZ but chooses to

does not meet this expenditure test, it will

must complete and attach Schedule C

do so, it must file a complete return and

owe a section 4911 excise tax on its

(Form 990 or 990-EZ) to Form 990-EZ,

provide all of the information requested,

excess lobbying expenditures. Moreover,

and complete the applicable parts relating

including the required schedules.

if over a 4-year averaging period the

to those lines.

organization’s average annual total

If an organization has an ownership

Definitions

lobbying or grassroots lobbying

interest in a joint venture that conducts

expenditures are more than 150% of its

Definitions in this section are applicable

political campaign or lobbying activities,

dollar limits, the organization will lose its

throughout this schedule, except where

the organization must report its share of

exempt status.

noted. The following bold terms are

such activity occurring in its tax year on

defined in the Glossary.

Schedule C (Form 990 or 990-EZ).

Exempt purpose expenditures. In

•

Joint venture.

general, an exempt purpose expenditure

Part I. Political campaign activities.

•

Legislation.

is paid or incurred by an electing public

Part I is to be completed by section

•

Lobbying activities.

charity to accomplish the organization’s

501(c) and section 527 organizations. If

•

Political campaign activities.

exempt purpose.

the organization answered “Yes” to Form

•

Tax year.

990, Part IV, line 3, or Form 990-EZ, Part

Exempt purpose expenditures include:

VI, line 46, then:

Revenue Ruling 2007-41 provides

1. The total amount paid or incurred

•

TIP

guidelines for exempt

A section 501(c)(3) organization must

for religious, charitable, scientific, literary,

organizations on the scope of the

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

or educational purposes, or for the

tax law prohibition of campaign activities

complete Part I-C.

prevention of cruelty to children or

•

by section 501(c)(3) organizations. (See

A section 501(c) organization other

animals, or to foster national or

Rev. Rul. 2007-41, 2007-25 I.R.B. 1421).

than section 501(c)(3) must complete

international amateur sports competition

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

Section 527 exempt function

(not including providing athletic facilities

I-B.

activities. All functions that influence or

or equipment, other than by qualified

•

A section 527 organization must

attempt to influence the selection,

amateur sports organizations described in

complete Part I-A. Do not complete Parts

nomination, election, or appointment of

section 501(j)(2)),

I-B and I-C.

any individual to any federal, state, or

2. The allocable portion of

Part II. Lobbying activities. Part II is to

local public office or office in a political

administrative expenses paid or incurred

be completed only by section 501(c)(3)

organization, or the election of

for the above purposes,

Cat. No. 20374L

Instructions For Schedule C (Form 990 Or 990-Ez) 2008

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