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Three Easy Steps to Calculate Your Lobbying Budget
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If you have filed the one page IRS Form 5768, your 501(c)(3) organization can use this generous formula to determine its lobbying budget.
Step 1: Determine Your Exempt Purpose Expenditures
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Annual Budget
Outside Fundraiser Costs Capital costs Total |
____________________
- ____________________ ____________________ - ____________________ ____________________ |
This is your Exempt Purpose Expenditure Amount.
Step 2: Apply IRS Percentage Formula
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Exempt Purpose Expenditure Amount
20 % of first $500,000 15 % of the next $500,000 10 % of the third $500,000 5 % of the remaining Total |
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_____________________ + _____________________ + _____________________ + ____________________ ____________________ |
This is your Annual Lobbying Budget. May not exceed million.
Step 3: Determine Grassroots Lobbying Budget
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Annual Lobbying Budget
Divide by 4 Grassroots lobbying budget |
_____________________
֦lt;/b> _____________________ |
This total must fit within the overall limit.
Source: IRS Reg. 4911-1(c)(1)