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Private Foundation Taxable Expenditures: Lobbying exception for decisions affecting the powers, duties, etc., of a private foundation

Taxes on lobbying expenditures do not apply to any amount paid or incurred in connection with an appearance before, or communication with, any legislative body on a possible decision of the body that might affect the existence of the private foundation, its powers and duties, its tax-exempt status or the deductibility of contributions to the foundation. Under this exception, a foundation may communicate with the entire legislative body, committees, or subcommittees of the legislative body, individual congressmen or legislators, members of their staffs, or representatives of the executive branch, who are involved in the legislative process if the communication is limited to the prescribed subjects.  In addition, the foundation may make expenditures to initiate legislation if the legislation concerns only matters that might affect the existence of the private foundation, its powers and duties, its tax-exempt status or the deductibility of contributions to the foundation.


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Page Last Reviewed or Updated: 20-Oct-2016