Technical Assistance Question of the Week

Q: Can we still solicit tax-deductible donations if we choose to lobby under the 501(h) expenditure test?

A: Yes! 501(c)(3) organizations have a choice between two options for measuring their lobbying limits: you can remain with the default “insubstantial part test” or you can elect to use the “501(h) expenditure test.” Choosing the 501(h) expenditure test does not change the tax-exempt status of your nonprofit – you are still a 501(c)(3) organization that may accept tax-deductible contributions. The reference to “501(h)” is simply a reference to where the expenditure test is located within the tax code.


For more information about lobbying rules for 501(c)(3)s, see our fact sheet or visit our website at www.allianceforjustice.org.