Reporting Lobbying Activities

Public charities may engage in limited lobbying activities. In fact, the official IRS terminology is “insubstantial” activity.  If lobbying activities become a substantial part of  a 501(c)(3)’s activities, then the organization runs the risk of losing their exempt status and/or be liable for excise taxes. 

What is considered a lobbying activity?

1. Direct contact with members of the legislative body and other governmental officials in support or opposition of legislation. 

2. Communicating with the public in a referendum, initiative, or similar activity.

3. Activities encouraging the general public to take action about specific legislation (commonly referred to as grassroots lobbying). 

If your organization is a 501(c)(3), (4), (5) or (6) entity and involved in lobbying activities, you are required to communicate certain information to the IRS via the Form 990 or Form 990-EZ.

For a 501(c)(3) org, there are two methods of reporting lobbying expenditures: Read the rest of this entry »