Research Process Patenting

[Mark R Dobyns Jones]

On 7/23/07, Andrew Sullivan <ajs at crankycanuck.ca> wrote:
> On Tue, Jul 24, 2007 at 01:46:29AM +0800, Tim Post wrote:

> As I understand it, such direct lobbying would also violate our tax
> status; which is the other reason not to raise this issue here.
> 


Mr. Sullivan's reply is  inaccurate on the lobbying and gag-rule topics.

United States tax exempt organizations are permitted to lobby
legislatures, within limits. This is how it is possible for United
States universities, and other tax exempt organizations to lobby for
particular laws.  There is a prohibition against tax-exempt groups
campaigning for a candidate for office. A lot different.

In general, tax exempt organizations are permitted to talk about the
topic of lobbying for, or potentially lobbying for something, or
analyzing the process of lobbying, without worry, since talk costs
nothing, without jepardizing its tax status. If the typical organization
gets serious about lobbying efforts, generally it elects to use an
expenditures-reporting test, so that it may know what the measure and
threshold is, and plan for staying below the relevant threshold.

For "non-electing" organizations the determination on lobbying is based
upon a review of all activities, so that "no substantial portion" of
the organization's activities may be lobbying.

See the U.S. Internal Revenue web site for brief background:

- Expenditures test election:
http://www.irs.gov/charities/article/0,,id=163394,00.html
- The election form: http://www.irs.gov/pub/irs-pdf/f5768.pdf

- The "substantial part test, for non-electing organizations:
   http://www.irs.gov/charities/article/0,,id=163393,00.html

~Mark Jones