Trade Assn client insists a tax lawyer said the assn could donate to a political campaign & deduct it. I have searched high & low as to how this would be reported on 990EZ but find nothing regarding it. Anyone have insights?
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Sharon
We'll try to cooperate fully with the IRS, because, as citizens, we feel a strong patriotic duty not to go to jail. -
Maybe this has something for you.... I didn't read it, so I could be off base.
This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content. -
Political Contributions
I believe there is a LIMITED amount an organization can spend on political contributions - but if I'm not mistaken it's on LOBBYING activities - not donations to political parties - and limited to an annual maximum of $ 2,000.
Then the organization dues notice must state the % of total dues billing that is NON-DEDUCTIBLE due to the lobbying related expenses.
So it's not an open field without limitations.Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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Would you consider
that a meeting of the members of the association - a dinner meeting - to be "lobbying expense"? The actual contribution was less than the $2,000 but the dinner meeting wasn't.Sharon
We'll try to cooperate fully with the IRS, because, as citizens, we feel a strong patriotic duty not to go to jail.Comment
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Political Contributions
I believe Bob W's link provides you with all the information you're looking for.
The answer to your questions are all dependent on a number of different facts and conditions.
Keep in mind that "political" and "lobbying" issues are very sensitive issues in IRS's eyes and if not strictly adhered to can very well jeopardize the 501(c)'s existence as a 501(c) organization.
It's all relative to exactly what activity took place, if it related to the organization's exempt purpose, and what specific actions were taken.Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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"if it related to the organization's exempt purpose"
The assn members businesses are endangered by big biz and the politician is a sympathizer who can help them so it behooves them to contribute to her campaign. Wouldn't that be considered "related to the organizations exempt purpose"? The protection of the association's members! I think so.
I have more info than when I began this thread. They are well under the $2,000, so I don't need to prepare schedule C, either.Sharon
We'll try to cooperate fully with the IRS, because, as citizens, we feel a strong patriotic duty not to go to jail.Comment
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