American Independent Business Alliance

The IRS Schedule C for the form 990 is a declaration of political activity — lobbying and financial contributions or volunteer time expended toward political campaigns.  The form can be confusing, since it’s designed for use by all 501c groups — including those not allowed to support candidates for public office and with severe restriction on their lobbying activity.  We’ve aimed to help you through this murky form with more streamlined instruction with our affiliates in mind.  If you wish to refer to the more detailed IRS instructions, you can find them at the link provided below for downloading the Schedule C.   Download the most recent version of the Schedule C for the 990 from the IRS website and print it.  You’ll be reporting for the previous year. Complete only what’s required for a 501c6 organization — Parts I-A, I-C, and at least Part III-A This instruction is provided with the assumption that your group has not engaged in any kind of lobbying on issues or contributed money to a political campaign. If your group DID engage in lobbying directly through hiring a lobbyist, indirectly through contributing to a 527 organization (PAC), or contribute money to or volunteer for a candidate for public office, you will need to complete the form using that information.   Where indicated just above Part I-A, enter the legal name of your organization and your FEIN. Part I-A 1. If your group contributed money or volunteer time toward any political campaign or campaign activity in 2014, describe the nature of the activity in Part IV. 2.  Enter 0, unless your group contributed funds toward this purpose. 3.  Enter 0, unless anyone from your group volunteered on behalf of your organization for any political campaign.  If so, enter the amount of hours volunteered. Part I-C This section parses the funds you may have expended on political campaigns, either by direct contribution or via contributing to a 527 organization (PAC).  Here’s how the IRS defines a 527 organization: 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.   1.  Enter 0, or if funds were expended, enter the amount of funds your group contributed directly to any political election campaign. 2.  Enter 0, or if funds were expended, enter any funds your group contributed to another organization such as a PAC for this kind of activity. 3. Total the two amounts and enter on this line. 4. Enter No, unless you filed the form indicated. 5.  Leave blank, unless your group contributed money to any political election campaign.  If so, indicate the 527 organizations and information in the space provided. Part III-A Membership dues are a tax-deductible business expense for your members.  If your organization has spent any portion of dues collected to support lobbying or a Section 527 organization, your business members are not allowed to deduct that percentage.  Your organization must inform your members of any lobbying activity and the portion of their dues that are not tax-deductible.  These questions address this.   1. Enter No, unless 90% or more of the dues you received from your business members was used to support lobbying or other political activity. 2.  Enter Yes, unless your group paid an outside lobbyist or paid a lobbyist on your staff more than $2000 in 2014. 3.  Enter No, unless you had lobbying expense from prior to last year that you agreed to carry over to last year.   Part III-B Complete this section only if you answered No to #1 and #2 above –OR- you answered Yes to #3 above.

Submit a Comment

Pin It on Pinterest

Share This