Should Your Organization Elect Under 501(h)?
The "pros" outweigh the "cons" in most cases where a charity engages in significant advocacy.
For organizations that engage in lobbying activity, the 501(h) election can be a valuable protective device. Although there will be accounting issues, the relative certainty of the calculations should allow a charity to plan and engage in significant lobbying activity without fear that it will lose its charitable exemption because it seeks legislative changes.
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