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This form is used by a nonprofits to elect the use of the expenditure test rather than be limited to an insubstantial amount of lobbying. Key Terms: 501(h), advocacy, election, Form 5768, IRS, legal consideration, lobbying regulation, substantial part test
Pitfall:
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Engaging in Lobbying without Having Thoroughly Evaluated the Benefits of Filing IRS Form 5768
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Section 501(h) of the Internal Revenue Code authorizes nonprofits to elect an optional measure of their lobbying activities known as the 'expenditure test', considered a much easier method to keep track of the amount of legal lobbying in your organization.
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This article provides an overview of how nonprofits can lobby without fear of losing tax exemption. Key Terms: advocacy, IRS, legal consideration, lobbying, lobbying regulation, Section 501(h) election
Preferred Practice:
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Know That A 501(c)(3) Nonprofit Can Engage in Unlimited Educational Activities
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There are no legal limits on the many effective advocacy activities that do not constitute lobbying.
Pitfall:
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Being Fearful of Losing Your Tax Exemption Because of Lobbying Activities by Your Nonprofit
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Basic training in nonprofit lobbying law will quickly dispel many common myths that discourage nonprofit lobbying, and make you aware of the ample lobbying limits permitted under the law.
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