Can Nonprofits Use the Tax Code Grassroots Lobbying Definition?
Those charitable nonprofit organizations that elected to follow the lobbying expenditure test (commonly called 501(h) after its section in the tax code), can use the tax code definitions of grassroots lobbying in lieu of the new definitions. (Selected other organizations, such as trade associations, can also use the same definitions.) These definitions, found in section 4911(c)(3) of the tax code, count grassroots lobbying at the local, state, and federal level, which is broader than the provision in the lobby reform bill. S. 1 only refers to federal lobbying. On the other hand, the tax code definition only covers lobbying on legislative matters; the Lobbying Disclosure Act covers legislative and some executive branch actions. What are the Penalties for Noncompliance? The bill raises from $50,000 to $100,000 the civil penalty for knowing failure to remedy a defective lobbyist filing or comply with any LDA requirement. Last year’s House version of the bill also amended the federal crimi
