What are the rules governing lobbying activities by nonprofits?
In California, nonprofits are prohibited from using their funds for political activities such as lobbying. However, some nonprofits can engage in direct lobbying if they meet certain requirements set by the Internal Revenue Service. Nonprofits must file Form 5768 with the IRS if they wish to engage in lobbying activities. This form requires the organization to identify all of its lobbying activities and expenses and provide a detailed explanation of how they are related to the organization’s mission. The form also requires the organization to identify any funding sources used for lobbying activities and certify that none of the funds were derived from federal or state funds. Nonprofits must also be transparent about their lobbying activities and keep accurate records of all expenses related to their lobbying efforts. All lobbying expenses must be reported annually on Form 990, which is filed with the IRS. Nonprofits are limited in the amount of lobbying they can do and if an organization spends too much money on lobbying, it could be disqualified as a nonprofit. The IRS requires that nonprofits limit their lobbying efforts to no more than 20 percent of total expenditures. Overall, nonprofits must adhere to a number of regulations when it comes to lobbying activities. The rules are designed to ensure that nonprofits are not using their funds for political activities and that they are transparent about their lobbying efforts. By following these rules, nonprofits can ensure that their lobbying activities are in compliance with the law.
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