Thursday, December 13, 2007

501 (h) Election

North Dakota Association of Nonprofit Organizations and the Minnesota Council of Nonprofits recently conducted an advocacy training in Moorhead for area nonprofits. Those who attended Advancing Nonprofit Advocacy Across Borders: Nonprofit Engagement in Civic Life heard about the IRS rules on advocacy, lobbying and the difference. They also learned about the reasons a nonprofit organization might want to become a 501 (h) organization.

The 501 (h) election is easy to do and provides many benefits to nonprofits that lobby. It has clear definitions, generous and easy-to-calculate spending limits, easy record keeping and reporting, no single-year penalty for excessive lobbying, and no increased risk of audit and protection for officers and directors. To make the 501 (h) election, organizations need to file IRS Form 5768. Download the form directly from the IRS's Web site at

Howard Barlow, NRS, Fargo

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