Question - Rex is the chief executive officer of Helping people, Inc., 501(C) (3) exempt organization located in Mobile, Alabama. He and the organization's board of directors are concerned about the effect that proposed legislation would have on the organization's budget and its ability to carry out its mission. They are discussing a proposal to have a law firm in Washington, D.C., aid in opposing the legislation.
a. What tax issues are relevant to Helping People, Inc., as it makes this decision?
b. Would your answer in (a) change if Helping People, Inc., planned to hire the law firm to lobby for the passage of the proposed legislation?