Organizations exempt under section 501(c)(3) of the Internal Revenue Code can elect to make limited expenditures which can influence legislation, with certain restrictions. Organizations must report their actual and allowed lobbying expenditures and grass roots expenditures as part of their annual return, and failure to comply may lead to loss of their tax-exempt status. An overview of these regulations, as well as particulars on filing information, are discussed in this article.
What is Form 5768?
Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization to Make Expenditures to Influence Legislation, is used by an eligible section 501(c)(3) organization to make or revoke an election to influence legislation. Eligibility for this type of organization is limited to educational institutions, hospitals and medical research organizations, organizations supporting government schools, publicly supported charities, agricultural research organizations, organizations publicly supported by admissions, sales, etc., and certain types of charities. It is important to note that churches, integrated auxiliaries of churches, and members of affiliated groups of organizations that contain a church or integrated auxiliary are disqualified from making this election. An organization making this election must also report their actual and permitted amounts in lobbying and grass roots expenditures on their annual return required under section 6033.
IRS Form 5768 – Who Needs to Fill It Out?
The IRS Form 5768 needs to be filled out by all eligible organizations as defined in sections 170(b)(1)(A)(ii) to 170(b)(1)(A)(vi) and 509(a)(2) to 509(a)(3) of the Internal Revenue Code, excluding private foundations and those disqualified under sections 170(b)(1)(A)(i) and 501(h). Private auxiliaries of churches and members of an affiliated group of organizations may also be disqualified from making the election. Use this form to make or revoke the election, and to report the actual and permitted amounts of lobbying expenditures and grass roots expenditures, and mail it to the IRS Center in Ogden, UT.
Step-by-Step: Form 5768 Instructions For Filling Out the Document
Eligible section 501(c)(3) organizations are permitted to make the election to make limited expenditures to influence legislation, as stated in section 501(h) of the Internal Revenue Code. To make or revoke this election, the organization must enter the ending date of the tax year to which the election or revocation applies in item 1 or 2, and sign and date Form 5768. Eligible organizations must meet one of the criteria of section 170(b)(1)(A)(ii)-(ix) or section 509(a)(2)-(3) of the Internal Revenue Code. Disqualified organizations are those that are described in section 170(b)(1)(A)(i) or are members of an affiliated group that comprises one or more of the organizations described in (a) or (b). The election and all associated documents should be sent to the Department of the Treasury at the Internal Revenue Service Center Ogden, UT 84201-0027. For more information, refer to sections 4911 and 501(h) of the Internal Revenue Code.
Below, we present a table that will help you understand how to fill out Form 5768.
|Information Required for Form 5768||Details|
|Ending Date of Tax Year||Date to which the election or revocation applies|
|Signature and Date||Sign and date Form 5768|
|Eligibility Criteria||Must meet criteria of section 170(b)(1)(A)(ii)-(ix) or section 509(a)(2)-(3) of the Internal Revenue Code|
|Disqualified Organizations||Organizations described in section 170(b)(1)(A)(i) or affiliated group members|
|Submission Address||Department of the Treasury, Internal Revenue Service Center Ogden, UT 84201-0027|
|Additional Information||Refer to sections 4911 and 501(h) of the Internal Revenue Code|
Do You Need to File Form 5768 Each Year?
Qualified section 501(c)(3) organizations, described in sections 170(b)(1)(A)(ii)-(vii) and 509(a)(2)-(3), may make an election under section 501(h) to permit certain specified expenditures to influence legislation and are required to report the actual and permitted amounts of such expenditures on their annual return. Organizations are members of an affiliated group of organizations if (1) the governing instrument of one such organization requires it to be bound by the decisions of the other organization’s decisions on legislative issues, or (2) the governing board of one such organization includes persons who, by aggregating their votes, have sufficient voting power to cause or prevent action on legislative issues by the first organization. To make or revoke this election, Form 5768 must be filed with the IRS by sending it to the address provided. However, private foundations (including private operating foundations) may not make this election.
Download the official IRS Form 5768 PDF
On the official IRS website, you will find a link to download Form 5768. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 5768