Attempting to influence legislation, intervening in a political campaign, private benefit to political party Applications for exemption and miscellaneous determination requests are assigned to exempt organizations specialists for review. If additional information is necessary to make a determination, a specialist will contact the organization for the information. Here’s a list of questions that might be asked on this topic. Specific questions for Form 1023, 501(c)(3) organizations (1 through 6) 1: General question for Form 1023 2-4: Attempting to influence legislation for Form 1023 5-6: Potential political campaign intervention indicated on Form 1023 or facts and circumstances indicate such activity 1. On Part IV, line 6 of your Form 1023 you indicated you will attempt to influence legislation. You checked “No” to Part IV, line 6a of the Form 1023 but did not describe whether your attempts to influence legislation are a substantial part of your activities, including the time and money spent on your attempts to influence legislation as compared to your total activities. Please describe your attempts to influence legislation in detail and state the percentage of your total expenditures and total time spent on these activities during each of your past taxable years and an estimate of your total expenditures and total time you intend to spend on these activities in the future. Submit representative samples of any materials you prepare or distribute in furtherance of these activities. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, and other general expenditures to these activities using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. For purposes of this question, you are attempting to influence legislation if you contact, or urge the public to contact, members of a legislative body for the purpose of proposing, supporting, or opposing legislation. For these purposes, the term “legislation” includes action by Congress, a state legislature, a local council, or a similar governing body, with respect to acts, bills, resolutions or similar items (such as legislative confirmation of appointive offices), or by the public in referendums, ballot initiatives, constitutional amendments, or similar procedure. 2. It appears you [insert description of activities set forth in the application indicating attempts to influence legislation and enclose any supporting materials that have not been submitted by applicant]. By engaging in this activity, it appears that you are attempting to influence legislation; however, you checked “No” to Part IV, line 6 on your Form 1023. Provide the following information: Describe these activities in detail, including the percentage of your total expenditures and total time spent on these activities during each of your past taxable years and an estimate of your total expenditures and total time you intend to spend on these activities in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, and other general expenditures to these activities using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. Submit representative samples of the materials you prepare or distribute in furtherance of these activities. 3. Your main or primary objectives appear to be [insert main or primary objectives based on the description of activities in the application]. It appears these objectives can only be attained by legislation or the defeat of proposed legislation. Explain whether there are other means for accomplishing your primary objectives and if so, describe your activities in doing so. 4. You stated on Part IV, line 5 of your Form 1023 that you support or oppose candidates in political campaigns, but you did not submit an explanation as required by the form. Submit a detailed explanation of your activities that support or oppose candidates in political campaigns. 5. You engage in [insert description of potential political campaign intervention activities and enclose any supporting materials that have not been submitted by applicant]. By engaging in these activities it appears you may be engaging in political campaign intervention. Please describe these activities in detail and submit representative samples of materials you prepared or distributed about these activities (including materials you posted on your website or social media sites). Potential political campaign intervention activities (Form 1023 (see K8-K18), Form 1024, or Form 1024-A) (6 through 20) 6-7: Political campaign intervention activities indicated on Form 1024 or Form 1024-A or facts and circumstances indicate this activity 8-9: Communications 10: Research and surveys K11: Candidate forums 12: Candidate appearances 13: Voter registration, get-out-the-vote drives 14: Voter guides 15-16: Private benefit to a particular political party or candidate 17: Affiliated organizations 18: Grant making to other organizations 19-20: Time and expenditure allocation responses compared to submitted information on Form 1024 6. You stated on [Part III, line 3 of your Form 1024 or Form 1024-A] that you spent or plan to spend money attempting to influence the selection, nomination, election or appointment of any person to any federal, state or local public office or to an office in a political organization. However, you did not submit a detailed explanation of this activity or a list of the amounts to be spent as required on the form. Please describe these activities in detail and state the percentage of your total expenditures and total time spent on these activities during each of your past taxable years and an estimate of your total expenditures and total time you intend to spend on these activities in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, fundraising, and other general expenditures to these activities using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. 7. You engage in [insert description of potential political activities and enclose any supporting materials that have not been submitted by applicant]. By engaging in these activities, it appears you may be attempting to influence the selection, nomination, election, or appointment of one or more persons to a federal, state, or local public office or to an office in a political organization. Provide the following information about these activities: Describe the activities in detail. State the percentage of your total expenditures and total time spent on these activities in each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on these activities in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, fundraising, and other general expenditures to these activities using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. Submit representative samples of materials you prepared or distributed about these activities (including materials you posted on your website or social media sites). 8. Enclosed are communications or materials that appear to constitute political campaign intervention. Did you produce or distribute these communications or materials? If so, provide the following information: State the time period during which the communication or material was distributed and the area in which the communication or material was distributed. Submit a copy of any other communications or materials you produced or distributed (including materials you posted on your website or social media sites) that (i) identify one or more candidates for public office and express approval or disapproval for their positions or actions; or (ii) reference voting in an upcoming election, along with the time period during which the communication or material was distributed and the area in which the communication or material was distributed. Submit a copy of any publicly disclosable reports about these communications or materials that were submitted to the Federal Election Commission or other election authorities. State the percentage of your total expenditures and total time spent on each of these communications or materials during each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on these kinds of communications in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, fundraising, and other general expenditures to these activities using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. 9. It appears you may have produced, distributed or issued communications or materials [(other than those described in question #)] that constitute political campaign intervention. Provide the following information: Submit a copy of any communications or materials you produced or distributed (including materials you posted on your website or social media sites) that (i) identify one or more candidates for public office and express approval or disapproval for their positions or actions; or (ii) reference voting in an upcoming election, along with the period during which the communication or material was distributed and the area in which the communication or material was distributed. Submit a copy of any publicly disclosable reports about the communications or materials that were submitted to the Federal Election Commission or other election authorities. State the percentage of your total expenditures and total time spent on each communication or material during each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on these kinds of communications in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, fundraising, and other general expenditures to these communications using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. 10. It appears you engage in research and survey activities related to political campaigns. Provide the following information: Describe how you conduct your research and survey activities related to political campaigns, including a description of how you determine survey populations and how you develop your survey questions. Describe how you distribute your research and survey results, including whether they are made available to the public. Submit representative samples of your survey questions and distributed research results. State the percentage of your total expenditures and total time spent on this activity during each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on this activity in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, fundraising, overhead, and other general expenditures to this activity using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. 11. It appears you hold candidate forums at which candidates for public office participate. Provide the following information: Do you invite all the legally qualified candidates for the elected office to the events? If not, describe how you determine which candidates to invite. For the legally qualified candidates who participated at your candidate forum, were each provided an equal opportunity to speak at your event? Describe how you determined what questions to ask of the candidates, including the scope of the subject matter of the questions. Describe how you determined who would present the questions to the candidates. Do you state your support or opposition to any of the candidates at the event? Are candidates asked to agree or disagree with positions of the organization? Does any political fundraising take place at the event? Submit representative samples of materials you prepared or distributed about these activities, including materials promoting the events and prepared candidate questions. State the percentage of your total expenditures and total time spent on this activity during each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on this activity in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, fundraising, overhead, and other general expenditures to this activity using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. 12. It appears you have candidates for public office present at your events. Provide the following information about these appearances: Explain whether they are appearing in their capacity as a candidate for public office. If not, explain why they were chosen to appear. Explain whether any references were made to the individual's candidacy or to the election during the appearance. Does any political fundraising take place at the event? Submit representative samples of materials you prepared or distributed about these activities, including materials promoting the events. State the percentage of your total expenditures and total time spent on this activity during each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on this activity in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, fundraising, and other general expenditures to this activity using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. 13. It appears you conduct voter registration drives or get-out-the-vote drives. Provide the following information about these activities: Describe where you conduct these activities and the criteria you use to choose the locations and the populations that are registered or encouraged to vote. State whether you ask questions to determine potential voters' views on issues and candidates for public office prior to registering them to vote. If you do, please explain. Submit representative samples of materials you prepared or distributed about these activities, including scripts, flyers and brochures. State the percentage of your total expenditures and total time spent on this activity during each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on this activity in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, fundraising, and other general expenditures to this activity using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. 14. It appears you distribute or publish voter guides. Provide the following information about this activity: Describe how you prepare your voter guides, including how you determine which issues are addressed in the guides. Do your guides include all legally qualified candidates for each public office in your guides? If you do not, explain why and describe how you determine which candidates to include. If you use a questionnaire to determine candidate positions, explain whether the questions contained in the questionnaire are identical to those provided in the voter guide, whether the candidates have a reasonable amount of time to respond to the questionnaire, whether candidates are given a reasonable opportunity to explain their positions in their own words, and whether the responses in the voter guide are unedited and appear in the guides close to the question to which they respond. Additionally, describe how you treat candidates who do not respond. When and how often are your voter guides produced? How are your voter guides made available and to whom? When, where, and how often do you distribute your voter guides? Submit representative samples of the voter guides you have prepared or distributed. State the percentage of your total expenditures and total time spent on this activity during each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on this activity in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, fundraising, and other general expenditures to this activity using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. 15. It appears you engage in [describe activity]. It appears this activity may be conducted primarily for the benefit of one political party. Provide the following information about this activity: Describe these activities in detail. State the percentage of your total expenditures and total time spent on this activity during each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on this activity in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, fundraising, and other general expenditures to this activity using a reasonable method. The percentage of total time should include employee and volunteer hours. 16. It appears you may be affiliated with or provide financial or other support to one or more candidates for public office. Provide the following information about this activity: State the names of the candidates. Describe the candidates' relationship to you in detail, including whether you work with the candidates regularly and the nature and dollar value of the benefits you provide to the candidates. State whether you share employees, volunteers, funds, office space, websites, or other resources with the candidates and, if you do, provide a copy of any agreements that you entered into with the candidates about sharing these resources. List the compensation, if any, you received from the candidates in exchange for your support and whether and how you determined that the compensation was reasonable. If the value of the support you provided to the candidates exceeded the compensation you received from the candidates in exchange for your support, state this excess as a percentage of your total expenditures in each of your past taxable years and an estimate of what the percentage will be in the future. 17. It appears you are affiliated with other organizations described in Internal Revenue Code Section[s] [Insert applicable Code Sections]. Provide the following information about these affiliations: State the name and address of the organizations. Describe your relationship with the organizations in detail, including whether you work with the organizations regularly. State whether you share employees, volunteers, funds, office space, websites, or other resources with the organizations and, if you do, provide a copy of any agreements that you entered into with the organizations about sharing these resources. List the compensation, if any, you received from the organizations in exchange for your support and whether and how you determined that the compensation was reasonable. If the value of the support you provided to the organizations exceeded the compensation you received from the organizations in exchange for your support, state the percentage of your total expenditures that this excess constituted in each of your past taxable years and an estimate of what the percentage will be in the future. 18. It appears you make grants to organizations other than those described under IRC Section 501(c)(3). Describe your grant making program. Your response should include: The purpose of the grants. Your criteria for making a grant and how you determine that the grants will further your exempt purposes. A Description of procedures you have for ensuring that the grantee uses the grant to further your exempt purposes. Copies of representative samples of grant agreements and grant proposals. A list of each grant you made during each of your past taxable years to an organization other than an organization described in IRC Section 501(c)(3), along with the amount and the name of the recipient and IRC section, if any, in which the recipient is described (for example, Sections 501(c)(4), (5), or (6) or 527). The percentage of your total expenditures and total time spent on this activity during each of your past taxable years. Additionally, estimate the percentage of your total expenditures and total time you plan to spend on this activity in the future. For purposes of calculating the percentage of expenditures, allocate salaries, administrative, overhead, fundraising, and other general expenditures to this activity using a reasonable method. For purposes of calculating the percentage of time, include volunteer as well as employee hours. 19. State whether and how the percentages of time you provided in response to question[s] [#s], above, are reflected in the percentages of time included in the narrative description you provided in your application. 20. State whether and how the amounts used to calculate the percentages of expenditures you provided in response to question[s] [#s], above, were included in the “amounts spent” on political activity that you provided in your narrative description of your activities. Additional information See the complete list of Applying for exemption/Miscellaneous determination sample questions by topic.
