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Formulário 990 Instruções para o Calendário C

Instruções de Programação C (Form 990) , Campanha Política e Atividades de Lobbying

Rev. 2023

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Department of the Treasury  
Internal Revenue Service  
2023  
Instructions for Schedule C  
(Form 990)  
Political Campaign and Lobbying Activities  
Section references are to the Internal Revenue Code unless  
otherwise noted.  
Form 990, Part IV, line 4, or Form 990-EZ, Part VI, line 47, then  
complete the specific parts as follows.  
A section 501(c)(3) organization that elected to be subject to  
the lobbying expenditure limitations of section 501(h) by  
filing Form 5768 and for which the election was valid and in  
effect for its tax year beginning in the year 2023 must  
complete Part II-A. Don’t complete Part II-B.  
Future Developments  
For the latest information about developments related to  
Schedule C (Form 990) and its instructions, such as legislation  
enacted after they were published, go to IRS.gov/Form990.  
A section 501(c)(3) organization that hasn’t elected to be  
subject to the lobbying expenditure limitations of section  
501(h) (or has revoked such election by filing Form 5768 for  
which the revocation was valid and in effect for its tax year  
beginning in the year 2023) must complete Part II-B. Don’t  
complete Part II-A.  
General Instructions  
Note. Terms in bold are defined in the Glossary of the  
Instructions for Form 990.  
Part III. Section 6033(e) notice and reporting requirements  
and proxy tax. Part III is completed by section 501(c)(4),  
section 501(c)(5), and section 501(c)(6) organizations that  
received membership dues, assessments, or similar amounts as  
defined in Rev. Proc. 98-19, 1998-1 C.B. 547, and that answered  
Yes” on Form 990, Part IV, line 5, or “Yes” on Form 990-EZ,  
line 35c, regarding the proxy tax.  
If an organization isn’t required to file Form 990 or Form  
990-EZ but chooses to do so, it must file a complete return and  
provide all of the information requested, including the required  
schedules.  
Purpose of Schedule  
Schedule C (Form 990) is used by:  
Section 501(c) organizations, and  
Section 527 organizations.  
These organizations must use Schedule C (Form 990) to  
furnish additional information on political campaign activities  
or lobbying activities, as those terms are defined later for the  
various parts of this schedule.  
Who Must File  
An organization that answered “Yes” on Form 990, Part IV,  
Checklist of Required Schedules, line 3, 4, or 5, must complete  
the appropriate parts of Schedule C (Form 990) and attach  
Schedule C to Form 990. An organization that answered “Yes” on  
Form 990-EZ, Part V, line 46, or Part VI, line 47, must complete  
the appropriate parts of Schedule C (Form 990) and attach  
Schedule C to Form 990-EZ. An organization that answered  
"Yes" on Form 990-EZ, Part V, line 35c, because it is subject to  
the section 6033(e) notice and reporting requirements and proxy  
tax, must complete Schedule C (Form 990), Part III, and attach  
Schedule C to Form 990-EZ.  
Definitions  
Definitions in this section are applicable throughout this  
schedule, except where noted. The following terms are defined  
in the Glossary.  
Joint venture.  
Legislation.  
Lobbying activities.  
Political campaign activities.  
Tax year.  
See Rev. Rul. 2007-41, 2007-25 I.R.B. 1421, available at  
the scope of the tax law prohibition on campaign  
TIP  
If an organization has an ownership interest in a joint  
venture that conducts political campaign activities or  
lobbying activities, the organization must report its share of  
such activity occurring in its tax year on Schedule C (Form 990).  
See Instructions for Form 990, Appendix F, Disregarded Entities  
and Joint Ventures—Inclusion of Activities and Items.  
activities by section 501(c)(3) organizations.  
Section 527 exempt function activities. Section 527  
exempt function activities include all functions that influence or  
attempt to influence the selection, nomination, election, or  
appointment of any individual to any federal, state, or local public  
office or office in a political organization, or the election of  
Presidential or Vice-Presidential electors, whether or not such  
individual or electors are selected, nominated, elected, or  
appointed.  
Political expenditures. Any expenditures made for political  
campaign activities are political expenditures. An expenditure  
includes a payment, distribution, loan, advance, deposit, or gift  
of money, or anything of value. It also includes a contract,  
promise, or agreement to make an expenditure, whether or not  
legally enforceable.  
Part I. Political campaign activities. Part I is completed by  
section 501(c) organizations and section 527 organizations that  
file Form 990 (and Form 990-EZ). If the organization answered  
Yes” on Form 990, Part IV, line 3, or Form 990-EZ, Part V,  
line 46, then complete the specific parts as follows.  
A section 501(c)(3) organization must complete Parts I-A  
and I-B. Don’t complete Part I-C.  
A section 501(c) organization other than section 501(c)(3)  
must complete Parts I-A and I-C. Don’t complete Part I-B.  
A section 527 organization that files the Form 990 or Form  
990-EZ must complete Part I-A. Don’t complete Parts I-B  
and I-C.  
Specific legislation. Specific legislation includes (1)  
legislation that has already been introduced in a legislative body  
and (2) specific legislative proposals that an organization either  
supports or opposes.  
Part II. Lobbying activities. Part II is completed by only section  
501(c)(3) organizations. If the organization answered “Yes” on  
Oct 27, 2023  
Cat. No. 20374L  
Grassroots lobbying communications (grassroots  
lobbying expenditures). A grassroots lobbying communication  
is any attempt to influence any legislation through an attempt to  
affect the opinions of the general public or any part of the  
general public.  
A communication is generally not a grassroots lobbying  
communication unless (in addition to referring to specific  
legislation and reflecting a view on that legislation) it encourages  
recipients to take action about the specific legislation.  
Definitions (Part II-A)  
Definitions in this section are applicable to only Part II-A.  
Expenditure test. Under the expenditure test, there are limits  
both upon the amount of the organization's grassroots lobbying  
expenditures and upon the total amount of its direct lobbying and  
grassroots lobbying expenditures. If the electing public charity  
doesn’t meet this expenditure test, it will owe a section 4911  
excise tax on its excess lobbying expenditures. Moreover, if over  
a 4-year averaging period the organization's average annual total  
lobbying or grassroots lobbying expenditures are more than  
150% of its dollar limits, the organization will lose its exempt  
status.  
A communication encourages a recipient to take action when  
it:  
1. States that the recipient should contact legislators;  
Exempt purpose expenditures. In general, an exempt  
purpose expenditure is paid or incurred by an electing public  
charity to accomplish the organization's exempt purpose.  
2. States a legislator's address, phone number, or similar  
information;  
Exempt purpose expenditures include:  
3. Provides a petition, tear-off postcard, or similar material for  
the recipient to send to a legislator; or  
1. The total amount paid or incurred for religious, charitable,  
scientific, literary, or educational purposes, or for the  
prevention of cruelty to children or animals, or to foster  
national or international amateur sports competition (not  
including providing athletic facilities or equipment, other  
than by qualified amateur sports organizations described in  
section 501(j)(2));  
4. Specifically identifies one or more legislators who:  
a. Will vote on legislation;  
b. Opposes the communication's view on the legislation;  
c. Is undecided about the legislation;  
d. Is the recipient's representative in the legislature; or  
2. The allocable portion of administrative expenses paid or  
incurred for the earlier purposes;  
e. Is a member of the legislative committee that will  
consider the legislation.  
3. Amounts paid or incurred to attempt to influence legislation,  
whether or not for the purposes described in 1 earlier;  
A communication described in item 4, earlier, is generally  
grassroots lobbying only if, in addition to referring to and  
reflecting a view on specific legislation, it is a communication that  
can’t meet the full and fair exposition test as nonpartisan  
analysis, study, or research.  
Exceptions to lobbying. In general, engaging in nonpartisan  
analysis, study, or research and making its results available to  
the general public or segment of members thereof, or to  
governmental bodies, officials, or employees isn’t considered  
either a direct lobbying communication or a grassroots lobbying  
communication. Nonpartisan analysis, study, or research may  
advocate a particular position or viewpoint as long as there is a  
sufficiently full and fair exposition of the pertinent facts to enable  
the public or an individual to form an independent opinion or  
conclusion.  
A communication that responds to a governmental body's or  
committee's written request for technical advice isn’t a direct  
lobbying communication.  
A communication isn’t a direct lobbying communication if the  
communication is an appearance before, or communication with,  
any legislative body concerning action by that body that might  
affect the organization's existence, its powers and duties, its  
tax-exempt status, or the deductibility of contributions to the  
organization, as opposed to affecting merely the scope of the  
organization's future activities.  
4. Allowance for depreciation or amortization; and  
5. Fundraising expenditures, except that exempt purpose  
expenditures don’t include amounts paid to or incurred for  
either the organization's separate fundraising unit or other  
organizations, if the amounts are primarily for fundraising.  
See Regulations section 56.4911-4(c) for a discussion of  
excluded expenditures.  
Lobbying expenditures. Lobbying expenditures are  
expenditures (including allocable overhead and administrative  
costs) paid or incurred for the purpose of attempting to influence  
legislation:  
Through communication with any member or employee of a  
legislative or similar body, or with any government official or  
employee who may participate in the formulation of the  
legislation, and  
By attempting to affect the opinions of the general public.  
To determine if an organization has spent excessive amounts  
on lobbying, the organization must know which expenditures are  
lobbying expenditures and which aren’t lobbying expenditures.  
An electing public charity's lobbying expenditures for a year are  
the sum of its expenditures during that year for direct lobbying  
communications (direct lobbying expenditures) plus grassroots  
lobbying communications (grassroots lobbying expenditures).  
Direct lobbying communications (direct lobbying  
Communication with members. For purposes of section  
4911, expenditures for certain communications between an  
organization and its members are treated more leniently than are  
communications to nonmembers. Expenditures for a  
communication that refers to, and reflects a view on, specific  
legislation aren’t lobbying expenditures if the communication  
satisfies the following requirements.  
expenditures). A direct lobbying communication is any attempt  
to influence any legislation through communication with:  
A member or employee of a legislative or similar body;  
A government official or employee (other than a member or  
employee of a legislative body) who may participate in the  
formulation of the legislation, but if the principal purpose of  
the communication is to influence legislation only; or  
1. The communication is directed to only members of the  
organization.  
The general public in a referendum, initiative, constitutional  
amendment, or similar procedure.  
2. The specific legislation the communication refers to, and  
reflects a view on, is of direct interest to the organization  
and its members.  
A communication with a legislator or government official will  
be treated as a direct lobbying communication if the  
communication only:  
Refers to specific legislation, and  
Reflects a view on such legislation.  
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Instructions for Schedule C (Form 990)  
3. The communication doesn’t directly encourage the member  
to engage in direct lobbying (whether individually or through  
the organization).  
branch official in an attempt to influence the official actions or  
positions of that official.  
Covered executive branch official. Covered executive  
branch officials include the President, Vice-President, officers  
and employees of the Executive Office of the President, the two  
senior level officers of each of the other agencies in the  
Executive Office, individuals in level I positions of the Executive  
Schedule and their immediate deputies, and individuals  
designated as having Cabinet level status and their immediate  
deputies.  
4. The communication doesn’t directly encourage the member  
to engage in grassroots lobbying (whether individually or  
through the organization).  
Expenditures for a communication directed to only members  
that refers to, and reflects a view on, specific legislation and that  
satisfies the requirements of items (1), (2), and (4), earlier (under  
Grassroots lobbying communications), but doesn’t satisfy the  
requirements of item (3), are treated as expenditures for direct  
lobbying.  
Direct contact lobbying. This means a:  
1. Meeting,  
2. Telephone conversation,  
3. Letter, or  
Expenditures for a communication directed to only members  
that refers to, and reflects a view on, specific legislation and  
satisfies the requirements of items (1) and (2), earlier, but  
doesn’t satisfy the requirements of item (4), are treated as  
grassroots expenditures, whether or not the communication  
satisfies the requirements of item (3). See Regulations section  
56.4911-5 for details.  
There are special rules regarding certain paid mass media  
advertisements about highly publicized legislation; allocation of  
mixed purpose expenditures; certain transfers treated as  
lobbying expenditures; and special rules regarding lobbying on  
referenda, ballot initiatives, and similar procedures. See  
Regulations sections 56.4911-2 and 56.4911-3.  
Affiliated groups. Members of an affiliated group are treated  
as a single organization to measure lobbying expenditures. Two  
organizations are affiliated if one is bound by the other  
organization's decisions on legislative issues (control) or if  
enough representatives of one belong to the other organization's  
governing board to cause or prevent action on legislative issues  
(interlocking directorate). If the organization isn’t sure whether its  
group is affiliated, it may ask the IRS for a ruling letter. There is a  
fee for this ruling. For information on requesting rulings, see Rev.  
Proc. 2023-5, 2023-1 I.R.B. 265, available at IRS.gov/pub/irs-  
irbs/irb23-01.pdf (or latest annual update).  
Members of an affiliated group measure both lobbying  
expenditures and permitted lobbying expenditures on the basis  
of the affiliated group's tax year. If all members of the affiliated  
group have the same tax year, that year is the tax year of the  
affiliated group. However, if the affiliated group's members have  
different tax years, the tax year of the affiliated group is the  
calendar year, unless all the members of the group elect  
otherwise. See Regulations section 56.4911-7(e)(3).  
Limited control. Two organizations that are affiliated  
because their governing instruments provide that the decisions  
of one will control the other on only national legislation are  
subject to the following provisions.  
4. Similar means of communication that is with a:  
a. Legislator, or  
b. Covered executive branch official and that is an attempt  
to influence the official actions or positions of that  
official.  
In-house expenditures include:  
1. Salaries, and  
2. Other expenses of the organization's officials and staff  
(including amounts paid or incurred for the planning of  
legislative activities).  
In-house expenditures don’t include:  
1. Any payments to other taxpayers engaged in lobbying or  
political activities as a trade or business, or  
2. Any dues paid to another organization that are allocable to  
lobbying or political activities.  
Specific Instructions  
Part I-A. Political Activity of Exempt  
Organizations  
Note. Section 501(c) organizations other than those exempt  
under section 501(c)(3) may establish section 527(f)(3) separate  
segregated funds to engage in political activity. Separate  
segregated funds are subject to their own filing requirements. A  
section 501(c) organization that engages a separate segregated  
fund to conduct political activity should report transfers to the  
fund in Parts I-A and I-C. The separate segregated fund should  
report specific activities on its own Form 990 if the fund is  
required to file.  
Line 1. Section 501(c) organizations should provide a detailed  
description of their direct and indirect political campaign  
activities in Part IV. If the section 501(c) organization collects  
political contributions or member dues earmarked for a separate  
segregated fund, and promptly and directly transfers them to that  
fund as prescribed in Regulations section 1.527-6(e), don’t  
report them here. Such amounts should be reported in Part I-C,  
line 5e.  
The controlling organization is charged with its own lobbying  
expenditures and the national legislation expenditures of the  
affiliated organizations,  
The controlling organization isn’t charged with other  
lobbying expenditures (or other exempt-purpose  
expenditures) of the affiliated organizations, and  
Each local organization is treated as though it were not a  
member of an affiliated group. For example, the local  
organization should account for its own expenditures only  
and not for any of the national legislation expenditures  
deemed as incurred by the controlling organization.  
Section 527 organizations should provide a detailed  
description of their exempt function activities in Part IV.  
Definitions (Part III)  
Definitions in this section are applicable to only Part III.  
Lobbying and political expenditures. For purposes of this  
section only, lobbying and political expenditures don’t include  
any political campaign expenditures for which the tax under  
section 527(f) was paid (see Part I-C). They do include any  
expenditures for communications with a covered executive  
Line 2. Enter the total amount that the filing organization has  
spent conducting the activities described on line 1.  
Line 3. If the organization used volunteer labor for its political  
campaign activities or section 527 exempt function activities,  
provide the total number of hours. Any reasonable method may  
be used to estimate this amount.  
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Instructions for Schedule C (Form 990)  
Part I-B. Section 501(c)(3)  
Part II-A. Lobbying Activity  
Only section 501(c)(3) organizations that have filed Form 5768  
(election under section 501(h)) complete this section.  
Organizations— Disclosure of Excise  
Taxes Imposed Under Section 4955  
Part II-A provides a reporting format for any section 501(c)(3)  
organization for which the 501(h) lobbying expenditure election  
was valid and in effect during the 2023 tax year, whether or not  
the organization engaged in lobbying activities during that tax  
year. A public charity that makes a valid section 501(h) election  
may spend up to a certain percentage of its exempt purpose  
expenditures to influence legislation without incurring tax or  
losing its tax exempt status.  
Section 501(c)(3) organizations must disclose any excise tax  
incurred during the year under section 4955 (political  
expenditures), unless abated. See sections 4962 and 6033(b).  
Line 1. Enter the amount of taxes incurred by the organization  
itself under section 4955, unless abated. If no tax was incurred,  
enter -0-.  
Line 2. Enter the amount of taxes incurred by the organization  
managers under section 4955, unless abated. If no tax was  
incurred, enter -0-.  
Affiliated groups. If the filing organization belongs to an  
affiliated group, check Part II-A, box A, and complete lines 1a  
through 1i.  
Line 3. If the filing organization reported a section 4955 tax on a  
Form 4720, Return of Certain Excise Taxes Under Chapters 41  
and 42 of the Internal Revenue Code, for the tax year, answer  
Yes.”  
Complete column (a) for the electing member of the group.  
Complete column (b) for the affiliated group as a whole.  
If the filing organization checked box A and the limited control  
provisions apply to the organizations in the affiliated group, each  
member of the affiliated group should check box B and complete  
only column (a).  
Line 4. Describe in Part IV the steps taken by the organization  
to correct the activity that subjected it to the section 4955 tax.  
Correction of a political expenditure means recovering the  
expenditure to the extent possible and establishing safeguards  
to prevent future political expenditures. Recovery of the  
expenditure means recovering part or all of the expenditure to  
the extent possible, and, where full recovery can’t be  
If the filing organization doesn’t check box A, don’t check box  
B.  
Affiliated group list. Provide in Part IV a list showing each  
affiliated group member's name, address, EIN, and expenses.  
Show which members made the election under section 501(h)  
and which didn’t.  
accomplished, by any additional corrective action that is  
necessary. (The organization that made the political expenditure  
isn’t under any obligation to attempt to recover the expenditure  
by legal action if the action would in all probability not result in  
the satisfaction of, or execution on, a judgment.)  
Include each electing member's share of the excess lobbying  
expenditures on the list.  
Nonelecting members don’t owe tax, but remain subject to  
the general rule, which provides that no substantial part of their  
activities may consist of carrying on propaganda or otherwise  
attempting to influence legislation.  
Part I-C. Section 527 Exempt Function  
Activity of Section 501(c)  
Organizations Other Than Section  
501(c)(3)  
Note. Section 501(c) organizations that collect political  
contributions or member dues earmarked for a separate  
segregated fund, and promptly and directly transfer them to that  
fund as prescribed in Regulations section 1.527-6(e), don’t  
report them on lines 1 or 2. Such amounts are reported on  
line 5e.  
Lines 1a through 1i. Complete lines 1a through 1i in column  
(a) for any organization required to complete Part II-A, but  
complete column (b) for only affiliated groups.  
Lines 1a through 1i are used to determine whether any of the  
organization's current year lobbying expenditures are subject to  
tax under section 4911. File Form 4720 if the organization needs  
to report and pay the excise tax.  
Line 1a. Enter the amount the organization expended for  
grassroots lobbying communications. See Regulations section  
56.4911-6(b).  
Line 1b. Enter the amount the organization expended for  
direct lobbying communications. See Regulations section  
56.4911-6(b).  
Line 1. Enter the amount of the organization's funds that it  
expended for section 527 exempt function activities. See  
Regulations section 1.527-6(b).  
Line 1c. Add lines 1a and 1b.  
Line 2. Enter the amount of the organization's funds that it  
transferred to other organizations, including a separate  
segregated section 527(f)(3) fund created by the organization,  
for section 527 exempt function activity.  
Line 1d. Enter all other amounts (excluding lobbying) the  
organization expended to accomplish its exempt purpose.  
Line 1e. Add lines 1c and 1d. This is the organization's total  
exempt purpose expenditures.  
Line 3. Total exempt function expenditures. Add lines 1 and 2  
Lines 1h and 1i. If there are no excess lobbying expenditures  
on either line 1h or 1i of column (b), treat each electing member  
of the affiliated group as having no excess lobbying  
expenditures. However, if there are excess lobbying  
expenditures on either line 1h or 1i of column (b), treat each  
electing member as having excess lobbying expenditures. In  
such case, each electing member must file Form 4720, and must  
pay the tax on its proportionate share of the affiliated group's  
excess lobbying expenditures. Enter the proportionate share in  
column (a) on line 1h or line 1i, or on both lines. In Part IV,  
provide the affiliated group list described earlier. Show what  
amounts apply to each group member. To find a member's  
proportionate share, see Regulations section 56.4911-8(d).  
Line 1j. If the filing organization reported section 4911 tax on  
Form 4720 for this year, answer “Yes.”  
and enter on line 3 and on Form 1120-POL, line 17b.  
Line 4. If the filing organization reported taxable political  
expenditures on Form 1120-POL for this year, answer “Yes.”  
Line 5. In columns (a), (b), and (c), enter the name, address  
and employer identification number (EIN) of each section 527  
political organization to which payments were made. In column  
(d), enter the amount paid from the filing organization's funds. In  
column (e), enter the amount of political contributions received  
and promptly and directly delivered to a separate political  
organization, such as a separate segregated fund or a political  
action committee (PAC). If additional space is needed, enter  
information in Part IV.  
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Instructions for Schedule C (Form 990)  
2023 tax year but didn’t make a section 501(h) lobbying  
expenditure election for that year by filing Form 5768. The  
distinction in Part II-A between direct and grassroots lobbying  
activities by organizations that made the section 501(h) election  
doesn’t apply to organizations that complete Part II-B.  
Line 2. Line 2 is used to determine if the organization exceeded  
lobbying expenditure limits during the 4-year averaging period.  
Any organization for which a lobbying expenditure election  
under section 501(h) was in effect for its tax year beginning in  
2023 must complete columns (a) through (e) of lines 2a through  
2f except in the following situations.  
Nonelecting section 501(c)(3) organizations must complete  
Part II-B, columns (a) and (b), to show lobbying expenditures  
paid or incurred.  
1. An organization first treated as a section 501(c)(3)  
organization in its tax year beginning in 2023 doesn’t have  
to complete any part of lines 2a through 2f.  
Note. A nonelecting organization will generally be regarded as  
engaging in lobbying activity if the organization either contacts,  
or urges the public to contact, members of a legislative body for  
the purpose of proposing, supporting, or opposing legislation or  
the government's budget process; or advocates the adoption or  
rejection of legislation.  
2. An organization doesn’t have to complete lines 2a through  
2f for any period before it is first treated as a section 501(c)  
(3) organization.  
3. If 2023 is the first year for which an organization's section  
501(h) election is effective, that organization must complete  
line 2a, columns (d) and (e). The organization must then  
complete all of column (e) to determine whether the amount  
on line 2c, column (e), is equal to or less than the lobbying  
ceiling amount calculated on line 2b and whether the  
amount on line 2f is equal to or less than the grassroots  
ceiling amount calculated on line 2e. The organization  
doesn’t satisfy both tests if either its total lobbying  
Organizations should answer “Yes” or “No” in column (a) to  
questions 1a through 1i and provide in Part IV a detailed  
description of any activities the organization engaged in (through  
its employees or volunteers) to attempt to influence legislation.  
The description should include all lobbying activities, whether  
expenses were incurred or not. Examples of such lobbying  
activities include:  
Sending letters or publications to government officials or  
legislators;  
expenditures or grassroots lobbying expenditures exceed  
the applicable ceiling amounts. When this occurs, all five  
columns must be completed and a re-computation made  
unless exception 1 or 2 earlier applies.  
Meeting with or calling government officials or legislators;  
Sending or distributing letters or publications (including  
newsletters, brochures, etc.) to members or to the general  
public; or  
4. If 2023 is the second or third tax year for which the  
organization's first section 501(h) election is in effect, that  
organization is required to complete only the columns for  
the years in which the election has been in effect, entering  
the totals for those years in column (e). The organization  
must determine, for those 2 or 3 years, whether the amount  
entered in column (e), line 2c, is equal to or less than the  
lobbying ceiling amount reported on line 2b, and whether  
the amount entered in column (e), line 2f, is equal to or less  
than the grassroots ceiling amount calculated on line 2e.  
The organization doesn’t satisfy both tests if either its total  
lobbying expenditures or grassroots lobbying expenditures  
exceed applicable ceiling amounts. When that occurs, all  
five columns must be completed and a re-computation  
made, unless exception 1 or 2, earlier, applies. If the  
organization isn’t required to complete all five columns,  
provide a statement explaining why in Part IV. In the  
statement, show the ending date of the tax year in which the  
organization made its first section 501(h) election and state  
whether or not that first election was revoked before the  
start of the organization's tax year that began in 2023.  
Using direct mail, placing advertisements, issuing press  
releases, holding news conferences, or holding rallies or  
demonstrations.  
For lines 1c through 1i, enter in column (b) the lobbying  
expenditures paid or incurred. Enter total expenditures on  
column (b), line 1j.  
Line 1f. Grants to other organizations are amounts from the  
organization's funds given to another organization for the  
purpose of assisting the other organization conducting lobbying  
activities.  
Line 1g. Direct contact is a personal telephone call or visit with  
legislators, their staffs, or government officials.  
Line 1h. Rallies, demonstrations, seminars, conventions,  
speeches, and lectures are examples of public forums  
conducted directly by the organization or paid for out of the  
organization's funds.  
Line 1i. Answer “Yes” if the organization engaged in any other  
activities to attempt to influence legislation.  
Note. If the organization belongs to an affiliated group, enter the  
appropriate affiliated group totals from column (b), lines 1a  
through 1i, when completing lines 2a, 2c, 2d, and 2f.  
Line 2a. Answer “Yes” if a section 501(c)(3) organization  
ceased to be described as a section 501(c)(3) organization  
because the amount on line 1j was substantial.  
Line 2a. For 2020, 2021, 2022, and 2023, enter the amount  
from Schedule C (Form 990), Part II-A, line 1f, filed for each year.  
Line 2c. For 2020, 2021, 2022, and 2023, enter the amount  
from Schedule C (Form 990), Part II-A, line 1c, for each year.  
Line 2d. For 2020, 2021, 2022, and 2023, enter the amount  
from Schedule C (Form 990), Part II-A, line 1g, for each year.  
Line 2f. For 2020, 2021, 2022, and 2023, enter the amount  
from Schedule C (Form 990), Part II-A, line 1a, for each year.  
Line 2b. Enter the amount of taxes, if any, imposed on the  
organization itself under section 4912, unless abated.  
Line 2c. Enter the amount of taxes, if any, imposed on the  
organization managers under section 4912, unless abated.  
Line 2d. If the filing organization reported a section 4912 tax on  
a Form 4720 for this year, answer “Yes.”  
Enter the total for each line in column (e).  
Part III. Section 6033(e) Notice and  
Reporting Requirements and Proxy  
Part II-B. Lobbying Activity  
Only section 501(c)(3) organizations that haven’t filed Form 5768  
(election under section 501(h)) or have revoked a previous  
election can complete this section.  
Tax  
Only certain organizations that are tax-exempt under:  
Section 501(c)(4) (social welfare organizations),  
Section 501(c)(5) (agricultural and horticultural  
organizations), or  
Part II-B provides a reporting format for any section 501(c)(3)  
organization that engaged in lobbying activities during the  
-5-  
Instructions for Schedule C (Form 990)  
Section 501(c)(6) (business leagues)  
2. The organization made lobbying expenditures during the  
2023 tax year consisting of only in-house direct lobbying  
expenditures totaling $2,000 or less, but excluding any  
allocable overhead expenses.  
are subject to the section 6033(e) notice and reporting  
requirements, and to a potential proxy tax. These organizations  
must report their total lobbying expenses, political expenses, and  
membership dues, or similar amounts.  
Section 6033(e) requires certain section 501(c)(4), (5), and  
(6) organizations to tell their members what portion of their  
membership dues were allocable to the political or lobbying  
activities of the organization. If an organization doesn’t give its  
members this information, then the organization is subject to a  
proxy tax. This tax is reported on Form 990-T, Exempt  
Organization Business Income Tax Return.  
If the organization's in-house direct lobbying expenditures  
during the 2023 tax year were $2,000 or less, but the  
organization also paid or incurred other lobbying or political  
expenditures during the 2023 tax year, it should answer “No” to  
question 2. If the organization is required to complete Part III-B,  
the $2,000 or less of in-house direct lobbying expenditures  
shouldn’t be included in the total of Part III-B, line 2a.  
Line 3. Answer “Yes” on line 3 if the organization on its prior tax  
year agreed to carry over an amount to be included in the current  
year's reasonable estimate of lobbying and political expenses.  
Complete only Part III-B if the organization answered “No” on  
both line 1 and line 2 or if the organization answered “Yes” on  
line 3.  
Part III-A  
Line 1. Answer “Yes” if any of the following exemptions from the  
reporting and notice requirements apply. By doing so, the  
organization is declaring that substantially all of its membership  
dues were nondeductible.  
Part III-B. Dues Notices, Reporting  
Requirements, and Proxy Tax  
1. Local associations of employees' and veterans'  
organizations described in section 501(c)(4), but not section  
501(c)(4) social welfare organizations.  
Dues notices. An organization that checked “No” for both Part  
III-A, lines 1 and 2, and is thus responsible for completing Part  
III-B, must send dues notices to its members at the time of  
assessment or payment of dues, unless the organization  
chooses to pay the proxy tax instead of informing its members of  
the nondeductible portion of its dues. These dues notices must  
reasonably estimate the dues allocable to the nondeductible  
lobbying and political expenditures reported in Part III-B, line 2a.  
An organization that checked “Yes” for Part III-A, line 3, and thus  
is required to complete Part III-B, must send dues notices to its  
members at the time of assessment or payment of dues and  
include the amount it agreed to carryover in its reasonable  
estimate of the dues allocable to the nondeductible lobbying and  
political expenditures reported in Part III-B, line 2a.  
2. Labor unions and other labor organizations described in  
section 501(c)(5), but not section 501(c)(5) agricultural and  
horticultural organizations.  
3. Section 501(c)(4), section 501(c)(5), and section 501(c)(6)  
organizations that receive more than 90% of their dues  
from:  
a. Organizations exempt from tax under section 501(a),  
other than section 501(c)(4), section 501(c)(5), and  
section 501(c)(6) organizations;  
b. State or local governments;  
c. Entities whose income is excluded from gross income  
under section 115; or  
Dues, Lobbying, and Political Expenses  
d. Organizations described in 1 or 2, earlier.  
4. Section 501(c)(4) and section 501(c)(5) organizations that  
receive more than 90% of their annual dues from:  
IF ...  
THEN ...  
the organization's lobbying and  
political expenses are more than its  
membership dues for the year,  
the organization must:  
a. Persons;  
(a) Allocate all membership dues to  
its lobbying and political activities; and  
(b) Carry forward any excess lobbying  
and political expenses to the next tax  
year.  
b. Families; or  
c. Entities, who each paid annual dues of $132 or less in  
2023 (adjusted annually for inflation). See Rev. Proc.  
2022-38; 2022-45 I.R.B. 445 section 3.46, available at  
update).  
the organization:  
the organization need not disclose to  
its membership the allocation of dues,  
etc., to its lobbying and political  
activities.  
(a) Had only de minimis in-house  
expenses ($2,000 or less) and no  
other nondeductible lobbying or  
political expenses (including any  
amount it agreed to carry over); or  
(b) Paid a proxy tax, instead of  
notifying its members of the allocation  
of dues to lobbying and political  
expenses; or  
5. Any organization that receives a private letter ruling from the  
IRS stating that the organization satisfies the section  
6033(e)(3) exception.  
6. Any organization that keeps records to substantiate that  
90% or more of its members can’t deduct their dues (or  
similar amounts) as business expenses whether or not any  
part of their dues are used for lobbying purposes.  
(c) Established that substantially all of  
its membership dues, etc., aren’t  
deductible by members,  
7. Any organization that isn’t a membership organization.  
Special rules treat affiliated social welfare organizations,  
Members of the organization can’t take a trade or business  
expense deduction on their tax returns for the portion of their  
dues, etc., allocable to the organization's lobbying and political  
activities.  
agricultural and horticultural organizations, and business  
!
CAUTION  
leagues as parts of a single organization for purposes of  
meeting the nondeductible dues exception. See Rev. Proc.  
98-19, 1998-1 C.B. 547, section 5.03, as adjusted annually.  
Line 2. Answer “Yes” on line 2 if the organization satisfies the  
following criteria of the $2,000 in-house lobbying exception.  
1. The organization didn’t make any political expenditures or  
foreign lobbying expenditures during the 2023 tax year.  
-6-  
Instructions for Schedule C (Form 990)  
Dues paid to another membership organization that were  
declared to be nondeductible lobbying expenses, and  
Travel and entertainment costs for lobbying activity.  
Proxy Tax  
IF ...  
THEN ...  
Direct contact lobbying. Treat all hours spent by a person in  
connection with direct contact lobbying as labor hours allocable  
to lobbying activities.  
Don’t treat as direct contact lobbying the hours spent by a  
person who engages in research and other background activities  
related to direct contact lobbying, but who makes no direct  
contact with a legislator, or covered executive branch official.  
the organization's actual lobbying and the organization is liable for a proxy  
political expenses are more than it  
estimated in its dues notices,  
tax on the excess.  
the organization:  
all the members' dues remain eligible  
for a section 162 trade or business  
(a) Elects to pay the proxy tax, and  
(b) Chooses not to give its members a expense deduction.  
notice allocating dues to lobbying and  
political campaign activities,  
De minimis rule. If less than 5% of a person's time is spent on  
lobbying activities, and there is no direct contact lobbying, an  
organization may treat that person's time spent on lobbying  
activities as zero.  
the organization:  
the IRS may permit a waiver of the  
proxy tax.  
(a) Makes a reasonable estimate of  
dues allocable to nondeductible  
lobbying and political activities, and  
(b) Agrees to adjust its estimate in the  
following year*,  
Purpose for engaging in an activity. The purpose for  
engaging in an activity is based on all the facts and  
circumstances. If an organization's lobbying communication was  
for both a lobbying and a non-lobbying purpose, the organization  
must make a reasonable allocation of cost to influence  
legislation.  
*A facts and circumstances test determines whether or not a reasonable estimate was  
made in good faith.  
Allocation of costs to lobbying activities and influencing  
legislation. An organization that is subject to the lobbying  
disclosure rules of section 6033(e) must use a reasonable  
allocation method to determine total costs of its direct lobbying  
activities; that is, costs to influence:  
Correction of prior year lobbying costs. If in a prior year, an  
organization treated costs incurred for a future lobbying  
communication as a lobbying cost to influence legislation, but  
after the organization filed a timely return, it appears the lobbying  
communication will not be made under any foreseeable  
circumstance, the organization may apply these costs to reduce  
its current year's lobbying costs, but not below zero. The  
organization may carry forward any amount of the costs not used  
to reduce its current year's lobbying costs to subsequent years.  
Legislation; and  
The actions of a covered executive branch official through  
direct communication (for example, President,  
Vice-President, or cabinet-level officials, and their  
immediate deputies) (section 162(e)(1)(A) and section  
162(e)(1)(D)).  
Example 1. Ratio method. X Organization incurred:  
1. 6,000 labor hours for all activities,  
Reasonable methods of allocating costs to direct lobbying  
activities include, but aren’t limited to:  
2. 3,000 labor hours for lobbying activities (three employees),  
3. $300,000 for operational costs, and  
The ratio method,  
The gross-up and alternative gross-up methods, and  
A method applying the principles of section 263A.  
4. No third-party lobbying costs.  
For more information, see Regulations sections 1.162-28 and  
X Organization allocated its lobbying costs as follows:  
1.162-29. The special rules and definitions for these allocation  
methods are discussed under Special Rules, later.  
Allocable  
third-party  
costs  
Lobbying labor hrs.  
Total labor hrs.  
Total costs  
of operations  
Costs allocable to lobbying  
activities  
An organization that is subject to the lobbying disclosure rules  
of section 6033(e) must also determine its total costs of:  
3,000  
6,000  
+
De minimis in-house lobbying,  
Grassroots lobbying, and  
×
$300,000  
$ -0-  
=
$150,000  
Political campaign activities.  
There are no special rules related to determining these costs.  
Example 2. Gross-up method and alternative gross-up  
method. A and B are employees of Y Organization.  
All methods. For all the allocation methods, include labor hours  
and costs of personnel whose activities involve significant  
judgment about lobbying activities.  
1. A's activities involve significant judgment about lobbying  
activities.  
2. A's basic lobbying labor costs (excluding employee  
benefits) are $50,000.  
Special Rules  
Ratio and gross-up methods. These methods may be used  
3. B performs clerical and support activities for A.  
even if volunteers conduct activities.  
4. B's labor costs (excluding employee benefits) in support of  
A's activities are $15,000.  
Ratio method. This method may disregard labor hours and  
cost of clerical or support personnel (other than lobbying  
personnel).  
5. Allocable third-party costs are $100,000.  
Alternative gross-up method. This method may disregard:  
If Y Organization uses the gross-up method to allocate its  
lobbying costs, it multiplies 175% times its basic labor costs  
(excluding employee benefits) for all of the lobbying of its  
personnel and adds its allocable third-party lobbying costs as  
follows:  
Labor hours, and  
Costs of clerical or support personnel (other than lobbying  
personnel).  
Third-party costs. These are:  
Payments to outside parties for conducting lobbying  
activities,  
-7-  
Instructions for Schedule C (Form 990)  
Costs allocable  
to lobbying  
activities  
Line 3. Enter the total amount of dues, assessments, and  
similar amounts received, for which members were timely  
notified of the nondeductibility under section 162(e) that were  
allocable to the 2023 tax year.  
Basic lobbying labor costs  
of A + B  
Allocable  
third-party costs  
(175% × $65,000)  
+
$100,000  
=
$213,750  
Example.  
Membership dues: $100,000 for the 2023 tax year,  
Organization's timely notices to members: 25% of  
membership dues nondeductible, and  
Line 3 entry: $25,000.  
If Y Organization uses the alternative gross-up method to  
allocate its lobbying costs, it multiplies 225% times its basic  
labor costs (excluding employee benefits) for all of the lobbying  
hours of its lobbying personnel and adds its third-party lobbying  
costs as follows:  
Line 4. If the amount on line 2c exceeds the amount on line 3  
and the organization sent dues notices to its members at the  
time of assessment or payment of dues, include the amount on  
line 4 that the organization agrees to carry over to the  
reasonable estimate of nondeductible lobbying and political  
expenditures next year and include the amount on the 2023  
Schedule C (Form 990), in Part III-B, line 2b (carryover lobbying  
and political expenses), or its equivalent.  
Basic lobbying labor  
costs of A  
(225% × $50,000)  
Allocable  
third-party costs  
$100,000  
Costs allocable to  
lobbying activities  
$212,500  
+
=
Section 263A cost allocation method. The examples that  
demonstrate this method are found in Regulations section  
1.162-28(f).  
If the organization didn’t send notices to its members, enter  
“-0-” on line 4.  
Line 5. The taxable amount reportable on line 5 is the amount of  
Part III-B, Line 1. Enter the total dues, assessments, and  
similar amounts allocable to the 2023 tax year. Dues are the  
amounts the organization requires a member to pay in order to  
be recognized as a member.  
dues, assessments, and similar amounts received:  
1. Allocable to the 2023 tax year, and  
2. Attributable to lobbying and political expenditures that the  
organization didn’t timely notify its members were  
nondeductible.  
Payments that are similar to dues include:  
1. Members' voluntary payments,  
Report the tax on Form 990-T.  
2. Assessments to cover basic operating costs, and  
If the amount on line 1 (dues, assessments, and similar  
amounts) is greater than the amount on line 2c (total lobbying  
and political expenditures), then subtract the nondeductible dues  
shown in notices (line 3) and the carryover amount (line 4) from  
the total lobbying and political expenditures (line 2c) to  
determine the taxable amount of lobbying and political  
expenditures (line 5).  
3. Special assessments to conduct lobbying and political  
activities.  
Line 2. Include on line 2a the total amount of expenses paid or  
incurred during the 2023 tax year in connection with:  
1. Influencing legislation;  
2. Participating or intervening in any political campaign on  
behalf of (or in opposition to) any candidate for any public  
office;  
If the amount on line 1 (dues, assessments, and similar  
amounts) is less than the amount on line 2c (total lobbying and  
political expenditures), then subtract the nondeductible dues  
shown in notices (line 3) and the carryover amount (line 4) from  
dues, assessments, and similar amounts (line 1) to determine  
the taxable lobbying and political expenditures (line 5).  
Subtract dues, assessments, and similar amounts (line 1)  
from lobbying and political expenditures (line 2c) to determine  
the excess amount to be carried over to the following tax year  
and reported on Part III-B, line 2b (carryover lobbying and  
political expenditures), or its equivalent, on the next year  
Schedule C (Form 990) along with the amounts the organization  
agreed to carry over on line 4.  
3. Attempting to influence any segment of the general public  
with respect to elections, legislative matters, or  
referendums; and  
4. Communicating directly with a covered executive branch  
official in an attempt to influence the official actions or  
positions of such official.  
Don’t include:  
1. In-house direct lobbying expenditures, if the total of such  
expenditures is $2,000 or less (excluding allocable  
overhead); or  
Underreporting of lobbying expenses. An organization is  
subject to the proxy tax for the 2023 tax year for underreported  
lobbying and political expenses only to the extent that these  
expenses (if actually reported) would have resulted in a proxy tax  
liability for that year. A waiver of proxy tax for the tax year applies  
to reported expenditures only.  
An organization that underreports its lobbying and political  
expenses is also subject to the section 6652(c) daily penalty for  
filing an incomplete or inaccurate return. See Instructions for  
Form 990, General Instructions H. Failure-To-File Penalties, and  
Instructions for Form 990-EZ, General Instructions G.  
Failure-To-File Penalties.  
2. Political expenditures for which the section 527(f) tax has  
been paid (on Form 1120-POL).  
Reduce the current year's lobbying expenditures, but not  
below zero, by costs previously allocated in a prior year to  
lobbying activities that were cancelled after a return reporting  
those costs was filed.  
Carry forward any amounts not used as a reduction to  
subsequent years.  
Include the following on line 2b.  
1. Lobbying and political expenditures carried over from the  
preceding tax year.  
Examples. Organizations A, B, and C:  
1. Reported on the calendar year basis,  
2. An amount equal to the taxable lobbying and political  
expenditures reported on Part III-B, line 5, for the preceding  
tax year, if the organization received a waiver of the proxy  
tax imposed on that amount.  
2. Incurred only grassroots lobbying expenses (didn't qualify  
for the under $2,000 in-house lobbying exception (de  
minimis rule)), and  
-8-  
Instructions for Schedule C (Form 990)  
3. Allocated dues to the tax year in which they were received.  
Because dues, assessments, and similar amounts received  
were less than lobbying expenses, excess lobbying expenses of  
$200 must be carried forward to the 2024 Schedule C (Form  
990) Part III-B, line 2b (excess of $600 of lobbying expenses over  
$400 dues, etc., received). The $200 will be included along with  
the other lobbying and political expenses paid or incurred in the  
2024 tax year.  
Organization A. Dues, assessments, and similar amounts  
received in 2023 were greater than its lobbying expenses for  
2023.  
Workpapers (for 2023 Form 990) — Organization  
A
See the instructions for Part III-B, line 5, for the treatment of  
the $300.  
1. Total dues, assessments, etc., received  
2. Lobbying expenses paid or incurred  
$800  
Organization C. Dues, assessments, and similar amounts  
received in 2023 were greater than lobbying expenses for 2023  
and the organization agreed to carry over a portion of its excess  
lobbying and political expenses to the next year.  
$600  
3. Less: Total nondeductible amount of dues  
100  
100  
notices  
4. Subtract line 3 from both lines 1 and 2  
$700  
$500  
5. Taxable amount of lobbying expenses (smaller  
of the two amounts on line 4)  
Workpapers (for 2023 Form 990) — Organization  
C
$500  
The amounts on lines 1, 2, 3, and 5 of the workpapers  
were entered on the 2023 Schedule C (Form 990), Part  
III-B, lines 1, 2c, 3, and 5.  
1.  
2.  
3.  
Total dues, assessments, etc., received  
Lobbying expenses paid or incurred  
Less: Total nondeductible amount of dues  
notices  
$800  
TIP  
$600  
100  
100  
100  
100  
Because dues, assessments, and similar amounts received  
were greater than lobbying expenses, there is no carryover of  
excess lobbying expenses to the 2024 Schedule C (Form 990),  
Part III-B, line 2b.  
4.  
5.  
6.  
Less: Amount agreed to carry over  
Subtract lines 3 and 4 from both lines 1 and 2  
$600  
$400  
Taxable amount of lobbying expenses (smaller  
of the two amounts on line 5)  
$400  
See the instructions for Part III-B, line 5, for the treatment of  
the $500.  
The amounts on lines 1, 2, 3, 4, and 6 of the workpapers  
were entered on the 2023 Schedule C (Form 990), Part  
III-B, lines 1, 2c, 3, 4, and 5.  
Organization B. Dues, assessments, and similar amounts  
received in 2023 were less than lobbying expenses for 2023.  
TIP  
Workpapers (for 2023 Form 990) — Organization  
B
See the instructions for Part III-B, line 5, for the treatment of  
the $400.  
1.  
2.  
3.  
Total dues, assessments, etc., received  
Lobbying expenses paid or incurred  
Less: Total nondeductible amount of dues  
notices  
$400  
Part IV. Supplemental Information  
$600  
Use Part IV to enter narrative information required in Part I-A,  
line 1; Part I-B, line 4; Part I-C, line 5; Part II-A, line 1 (affiliated  
group list); Part II-A, lines 1 and 2; and Part II-B, line 1. Also use  
Part IV to enter other narrative explanations and descriptions.  
Identify the specific part and line number that the response  
supports, in the order in which they appear on Schedule C (Form  
990). Part IV can be duplicated if more space is needed.  
100  
100  
4.  
5.  
Subtract line 3 from both lines 1 and 2  
$300  
$500  
Taxable amount of lobbying expenses (smaller  
of the two amounts on line 4)  
$300  
The amounts on lines 1, 2, 3, and 5 of the workpapers  
were entered on the 2023 Schedule C (Form 990), Part  
III-B, lines 1, 2c, 3, and 5.  
TIP  
-9-  
Instructions for Schedule C (Form 990)