Creation of PACS

Tax-exempt organizations engaged in lobbying and other political activities need to be aware of permissible activities under the tax laws. Charities are limited by Internal Revenue Code (IRC) Section 501(c)(3) in the amount of legislative lobbying they may conduct, and they are absolutely prohibited from participating or intervening in an election for public office.  Organizations exempt under other sections of the IRC, like trade associations, are unlimited in lobbying and may engage in some candidate electoral activity, although they may be subject to tax on expenditures for these purposes. GKG Law’s Association Practice Group advises associations, charities, and other non-profits about the complex tax laws that regulate the lobbying and political activities they conduct. Among other things, we provide guidance on Federal and State laws and regulations, 501(h) elections, registration and reporting obligations, representation before Federal and State regulators, and allocation of lobbying expenses between related organizations.