What is a lobbying activity, and how to report them on Form 990?

Lobbying is generally any attempt made by individuals or private interest groups to influence the government’s decisions. The activities intended by nonprofits to influence foreign, national, state, or local legislation are called lobbying activities. 

There are two types of lobbying activities: 

• Direct lobbying (attempting to influence the legislators) 
• Grassroots lobbying (attempting to influence legislation by influencing the general public).

Reporting lobbying activities 

• If you choose Interview-based filing

Under the Lobbying Activities section, select 'Yes' or 'No' for the question, 'Did the organization engage in lobbying activities or have a section 501(h) election in effect during the tax year?' and report your involvement in the lobbying activities.

 

If you choose Form-based filing

Navigate to Part IX, line 11, and enter the following information needed in the respective columns. 

(A) Total expenses

(B) Program service expenses

(C) Management and general expenses

(D) Fundraising expenses

 

Reporting Schedule C, Political Campaign and Lobbying Activities

In addition to reporting lobbying activities, if you’re a Section 501(c)(3) organization and answered 'Yes' to the question, 'Did the organization engage in lobbying activities, or have a section 501(h) election in effect during the tax year?' on Part IV line 4, then you must complete Part II of Schedule C, Political Campaign and Lobbying Activities (IRS Form 990 or 990-EZ).

However, Schedule C Part II-A must be filled only if your organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).

If your organization is exempt under section 501(c)(3) and has not filed Form 5768, it must complete only Part II-B of Schedule C.

To learn how to report lobbying activities in Form 990-EZ, click here.