Jointly Funded Projects - Lobbying Exception


A private foundation will not be treated as having paid or incurred any amount to attempt to influence legislation merely because it makes a grant to another organization on the condition that the recipient obtain a matching support appropriation from the government.  In addition, it will not be treated as having made a taxable expenditure of amounts paid or incurred in carrying on discussions with government officials if:

  • The subject is a new program or an existing program jointly funded by the foundation and the government,
  • The discussions are undertaken for the purpose of exchanging data and information on the subject matter of the program, and
  • The discussions are not undertaken to make any direct attempt to persuade government officials or employees to take a particular position on specific legislative issues other than the program.