IRC 501(h) Election

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Wikis > IRC 501(h) Election

A non-profit that has qualified as a 501(c)(3) Tax-Exempt Organization is prohibited from any lobbying efforts that go beyond those that are insubstantial. However, to be permitted to do any lobbying at all, the 501(c)(3) organization must submit a 501(h) election, available as Form 5768 from the IRS. A 501(c)(3) organization risks losing its tax-exempt status if it becomes involved with political activity beyond what is permitted by the 501(h) election. A non-profit seeking to influence legislation more actively should consider gaining tax-exempt status as a 501(c)(4) Action Organization.