An Eligible § 501(c)(3) Organization Has Made the § 501(h)

question 74

Essay

An eligible § 501(c)(3) organization has made the § 501(h) election to participate in lobbying on a limited basis.If the ceiling on lobbying established in § 501(h) (lobbying nontaxable amount) is exceeded, what are the potential tax consequences to the exempt organization?

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Definitions:

Infrastructure

Fundamental physical and organizational structures needed for the operation of a society or enterprise, such as roads, utilities, and communication systems.

Public Capital Goods

Long-term assets used by the public sector to provide public services, like roads, schools, and hospitals.

Power Facilities

Infrastructure units that generate or distribute electricity, including power stations, substations, and transmission lines.

Brain Drain

The emigration of highly trained or intelligent people from a particular country.