IRS Form 5768 – If your 501(c)(3) nonprofit wants to engage in lobbying without the uncertainty of the “substantial part” test, IRS Form 5768 is the simple one-page solution. This form lets eligible public charities elect (or revoke) the 501(h) expenditure test under Section 501(h) of the Internal Revenue Code. It provides clear, objective dollar limits on lobbying expenditures instead of the vague “no substantial part” rule that can jeopardize tax-exempt status.
This guide covers everything you need to know about IRS Form 5768, including who can file it, benefits, lobbying limits, step-by-step filing instructions, revocation process, reporting requirements, and more. All information comes directly from official IRS sources (updated as of 2026) and trusted nonprofit resources.
What Is IRS Form 5768?
Form 5768 (Rev. September 2016) is titled “Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation.”
It allows eligible 501(c)(3) public charities to:
- Elect the expenditure test under Section 501(h), which sets specific dollar limits on total lobbying and grassroots lobbying.
- Revoke a prior election.
Without this election, the IRS measures lobbying under the subjective “substantial part” test (based on facts and circumstances, with no clear percentage or dollar threshold). Exceeding “substantial” can result in loss of 501(c)(3) status and disqualification from receiving tax-deductible contributions.
The 501(h) election provides predictability and protection: as long as your organization stays within the defined limits, lobbying will not jeopardize your tax-exempt status.
Download the official IRS Form 5768 PDF here: https://www.irs.gov/pub/irs-pdf/f5768.pdf
Who Can File IRS Form 5768? (Eligibility Rules)
Not every 501(c)(3) qualifies. Eligible organizations include most public charities described in:
- Section 170(b)(1)(A)(ii) — educational institutions
- Section 170(b)(1)(A)(iii) — hospitals and medical research organizations
- Section 170(b)(1)(A)(iv) — organizations supporting government schools
- Section 170(b)(1)(A)(vi) — publicly supported organizations (charitable contributions)
- Section 170(b)(1)(A)(ix) — agricultural research organizations
- Section 509(a)(2) — organizations supported by admissions, sales, etc.
- Section 509(a)(3) — supporting organizations (with specific restrictions)
Ineligible (disqualified) organizations:
- Churches, conventions or associations of churches, and their integrated auxiliaries
- Private foundations (including private operating foundations)
- Members of an affiliated group that includes a church or integrated auxiliary
Note: Newly formed organizations can file Form 5768 along with their Form 1023 application for exemption.
Key Benefits of the 501(h) Election (Why File Form 5768?)
Most charitable nonprofits benefit significantly from electing the expenditure test:
- Objective and clear rules — Fixed dollar limits based on your organization’s size instead of subjective IRS judgment.
- Simpler Form 990 reporting — Electing organizations complete the shorter Part II-A of Schedule C (just two broad categories: direct lobbying and grassroots lobbying). Non-electing organizations must use the more detailed Part II-B.
- Higher safe lobbying allowance — Many organizations can lobby more confidently without risking status.
- Insurance against uncertainty — Protects against retroactive IRS audits that could deem activities “substantial.”
- Remains a 501(c)(3) — The election does not change your tax-exempt status; it simply changes how lobbying is measured.
The election stays in effect for all future years until you revoke it.
501(h) Lobbying Expenditure Limits (2026 Table)
Limits are based on your organization’s exempt purpose expenditures (generally, total expenditures minus certain investment and unrelated business income).
Total Lobbying Nontaxable Amount (from IRS.gov):
| Exempt Purpose Expenditures | Lobbying Nontaxable Amount |
|---|---|
| ≤ $500,000 | 20% of exempt purpose expenditures |
| > $500,000 but ≤ $1,000,000 | $100,000 + 15% of excess over $500,000 |
| > $1,000,000 but ≤ $1,500,000 | $175,000 + 10% of excess over $1,000,000 |
| > $1,500,000 but ≤ $17,000,000 | $225,000 + 5% of excess over $1,500,000 |
| > $17,000,000 | $1,000,000 (maximum) |
Grassroots Lobbying Limit: 25% of the total lobbying nontaxable amount (maximum $250,000).
You can spend the full limit on direct lobbying (contacting legislators or staff), but grassroots lobbying (urging the public to contact legislators) is capped at one-quarter of the total.
Consequences of exceeding limits:
- 25% excise tax on the excess amount (Section 4911).
- Loss of exempt status if total lobbying expenditures exceed 150% of the limit over a 4-year period.
How to File IRS Form 5768: Step-by-Step Instructions?
Filing is straightforward and free:
- Download the current Form 5768 PDF from the official IRS site.
- Complete the form:
- Organization name and Employer Identification Number (EIN).
- Address.
- For Election (Box 1): Enter the ending date of the tax year to which the election applies. It must be signed and postmarked within that first taxable year.
- For Revocation (Box 2): Enter the ending date of the tax year to which revocation applies. It must be signed and postmarked before the first day of that tax year.
- Sign under penalties of perjury by an authorized officer or trustee (include title and date).
- Mail to:
Department of the Treasury
Internal Revenue Service Center
Ogden, UT 84201-0027
Timing tip: File anytime during the tax year for which you want the election to apply. The election is effective starting with that tax year and continues indefinitely until revoked.
No online filing option exists — it must be mailed.
How to Revoke the 501(h) Election?
Use the same Form 5768 and check the revocation box. The revocation takes effect the following tax year. You can re-elect later by filing a new Form 5768.
Reporting Lobbying on Form 990
If you have a 501(h) election in effect:
- Answer “Yes” on Form 990, Part IV, line 4.
- Complete Schedule C, Part II-A (simplified version).
- Report both actual and permitted amounts for total lobbying and grassroots lobbying.
- Affiliated groups must report for the group as a whole and individually.
When Should Your Nonprofit File Form 5768?
Consider the election if your organization:
- Engages in any legislative advocacy or plans to.
- Wants predictable, dollar-based limits.
- Values simplicity on annual tax filings.
Large organizations spending heavily on grassroots lobbying (over $250,000) or certain supporting organizations may prefer the substantial part test — consult a tax advisor or attorney.
Important reminder: Federal grant or contract funds generally cannot be used for lobbying (see Federal Acquisition Regulations).
Final Thoughts: Protect Your Nonprofit with IRS Form 5768
The 501(h) election via Form 5768 is one of the easiest and most powerful tools available to 501(c)(3) organizations that want to advocate effectively while staying compliant. It replaces uncertainty with clear, safe limits and simpler reporting.
Download the form today: https://www.irs.gov/pub/irs-pdf/f5768.pdf
For the most current details, always refer to the official IRS pages:
Consult a qualified tax professional or nonprofit attorney before filing, especially if your organization is part of an affiliated group or receives government funding.
This article is for informational purposes only and is not tax or legal advice. IRS rules can be complex — verify with primary sources.
Last updated: February 2026, based on current IRS publications and Form 5768 (Rev. September 2016).