10 Essential Tips For Filling Form 990 Schedule C

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As a non-profit organization, filing Form 990 is a crucial part of maintaining transparency and compliance with the IRS. One of the most important schedules in Form 990 is Schedule C, which requires detailed information about the organization's political campaign and lobbying activities. In this article, we will provide you with 10 essential tips for filling Form 990 Schedule C accurately and efficiently.

Understanding the Purpose of Schedule C

Schedule C is used to report an organization's political campaign and lobbying activities. The IRS requires non-profit organizations to disclose their involvement in these activities to ensure compliance with tax laws and regulations. By accurately filling out Schedule C, organizations can demonstrate their commitment to transparency and accountability.

Tip 1: Review the Instructions Carefully

Before starting to fill out Schedule C, it is essential to review the instructions carefully. The IRS provides detailed instructions for each section of the schedule, and understanding these instructions can help prevent errors and ensure accuracy.

Tip 2: Determine If You Need to File Schedule C

Not all non-profit organizations need to file Schedule C. If your organization does not engage in any political campaign or lobbying activities, you may not need to file this schedule. However, if you are unsure, it is always best to consult with a tax professional or the IRS.

Tip 3: Complete Section A - Political Campaign Activities

Section A of Schedule C requires information about the organization's political campaign activities. This includes the name of the candidate or party supported, the amount spent on campaign activities, and the type of activity (e.g., contributions, expenditures, or fundraising events).

Tip 4: Complete Section B - Lobbying Activities

Section B of Schedule C requires information about the organization's lobbying activities. This includes the name of the legislation or regulation lobbied, the amount spent on lobbying activities, and the type of activity (e.g., direct lobbying, grassroots lobbying, or lobbying expenditures).

Tip 5: Calculate the Total Amount Spent on Lobbying Activities

The total amount spent on lobbying activities is calculated by adding the amounts reported in Section B. This total is then reported on Line 1 of Section C.

Tip 6: Complete Section C - Total Lobbying Expenditures

Section C requires the total lobbying expenditures to be reported. This includes the total amount spent on lobbying activities, as well as any additional amounts spent on lobbying expenditures.

Tip 7: Report Any Grassroots Lobbying Expenditures

Grassroots lobbying expenditures are reported in Section C. This includes any expenditures made to influence public opinion on a particular issue or legislation.

Tip 8: Report Any Direct Lobbying Expenditures

Direct lobbying expenditures are reported in Section C. This includes any expenditures made to influence a legislator or government official on a particular issue or legislation.

Tip 9: Review and Verify the Accuracy of the Information

Before submitting Schedule C, it is essential to review and verify the accuracy of the information. This includes checking for mathematical errors, ensuring that all required information is included, and verifying that the information is consistent with the organization's records.

Tip 10: Seek Professional Help If Needed

If you are unsure about any aspect of filling out Schedule C, it is always best to seek professional help. A tax professional or attorney can provide guidance and ensure that the schedule is completed accurately and efficiently.

By following these 10 essential tips, non-profit organizations can ensure that they accurately and efficiently fill out Form 990 Schedule C. Remember to review the instructions carefully, determine if you need to file Schedule C, and complete each section accurately and thoroughly.

Take Action Today

If you are a non-profit organization required to file Form 990 Schedule C, take action today to ensure that you are in compliance with the IRS. Review the instructions, complete each section accurately, and seek professional help if needed. By doing so, you can maintain transparency and accountability, and avoid any potential penalties or fines.