Miracle, Inc

question 28

Essay

Miracle, Inc., is a § 501(c)(3) organization involved in medical research. Based on its expectation that proposed legislation will adversely affect the funding supporting its mission, Miracle hires a lobbyist to work in Washington to represent its views.
Miracle is eligible for and thus makes the § 501(h) election. It calculates the lobbying nontaxable amount to be
$100,000 ($500,000 exempt purpose expenditures × 20%). The total lobbying expenditures for the year were
$115,000. Calculate Miracle's tax on excess lobbying expenditures.

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Definitions:

Military Dictatorships

A form of government in which military officers control power, often coming to power through a coup d'état and ruling without democratic processes.

International Terror Attacks

Acts of violence carried out by individuals or groups that cross national boundaries to achieve their objectives.

Authority

The legitimatized power or right of an individual, entity, or institution to make decisions, command obedience, and enforce norms.

Legitimacy

The general perception or recognition by the public that an entity, organization, or system has a valid and rightful existence or authority.