Apparently there is a difference in the definitions of "lobbying"
between the tax law and the Lobbying Disclosure Act of 1995 (LDA). See
http://www.asaecenter.org/PublicationsResources/whitepaperdetail.cfm?ItemNumber=12202
It looks like the IRS says that if no funds are spent on the recipients
of the lobbying then there is no lobbying. But the LDA says that merely
asking your members to support or oppose a piece of legislation is lobbying.
If a 501(c)(3) elects a 501(h) option up to 20 % of the organization's
funds can be used for lobbying without losing tax-exempt status. Reports
to the IRS are required.
At least, that's what a few moments of reading have led me to understand.
As far as I've seen, USMA does NOT spend money on legislators and its
funds are used solely for travel, lodging, and meals when President
Young sees legislators in DC and other key people. (I was on a trip with
her and one other person when we visited with the National Council of
Teachers of Mathematics.) I'm not even certain that President Young is
fully refunded for her expenses on those trips!
Jim
Harry Wyeth wrote:
Loss of tax exempt status is about as severe as it comes. Tax exempt
organizations depend on deductible donations as their life blood. Being
a lobbying organization is being in a separate universe.
HARRY WYETH
Bill Potts wrote:
As I understand it, 501(c)(3) corporations are not completely
prohibited from lobbying. The proportion of their time or funds that
can be used for lobbying activities is, however, strictly limited. The
penalty for lobbying isn't severe -- just loss of tax-exempt status.
--
James R. Frysinger
632 Stony Point Mountain Road
Doyle, TN 38559-3030
(C) 931.212.0267
(H) 931.657.3107
(F) 931.657.3108
