The Law of Tax-Exempt Organizations, 10th Edition 2014 Cumulative Supplement

CHAPTER TWENTY-TWO

Legislative Activities by Tax-Exempt Organizations

§ 22.3 Lobbying by Charitable Organizations

(b) Concept of Lobbying

*(d) Expenditure Test

§ 22.6 Legislative Activities of Business Leagues

*(a) Business Expense Deduction Disallowance Rules

§ 22.7 Legislative Activities of Other Tax-Exempt Organizations

§ 22.9 Constitutional Law Framework

§ 22.3 LOBBYING BY CHARITABLE ORGANIZATIONS

(b) Concept of Lobbying

p. 579, second complete paragraph, last line. Insert following has:

, in this context,

(d) Expenditure Test

*p. 588, n. 121. Insert following existing text:

The IRS ruled that, for purposes of this exception, subordinate organizations in a group exemption arrangement (see § 25.7) are members of the central organization, as are the paid and volunteer staff, agents, officers, and board and committee members of the affiliates (Priv. Ltr. Rul. 201347024).

p. 590, n. 143. Insert following existing material:

A publicly supported charity became the sole member of a tax-exempt university. The charity had made the expenditure test lobbying election. As a result of this restructuring, the charity became a member of an affiliated group. This made the charity potentially liable for excise tax on the group's excess lobbying expenditures. The lawyer representing the charity in the restructuring missed this issue, as did the accounting firm that prepared the charity's next annual information return. The accounting firm caught this matter while preparing the next year's return. ...