Get HOW TO LOBBY - Bacluctorgb

A 501(h) election or Conable election is a procedure in United States tax law that allows a 501(c)(3) non-profit organization to participate in lobbying limited only by the financial expenditure on that lobbying, regardless of its overall extent.

This limit is generally based upon the size of the organization and may not exceed $1,000,000, as indicated in the table below.

(1) Lobbying expenditures The term “lobbying expenditure” means any amount paid or incurred by the organization in carrying on propaganda, or otherwise attempting to influence legislation.

There is hereby imposed on the excess lobbying expenditures of any organization to which this section applies a tax equal to 25 percent of the amount of the excess lobbying expenditures for the taxable year.

In-house expenditures include: Salaries, and. Other expenses of the organization's officials and staff (including amounts paid or incurred for the planning of legislative activities).

Under Section 4911(c)(2) of the Code, the maximum allowable annual lobbying is the sum of: 20% of the first $500,000 of an organization's exempt purpose expenditures, plus. 15% of the second $500,000 of such expenditures, plus.