Examples of Substantial Part in a sentence
The term "Substantial Part" shall mean 10% or more of the Fair Market Value of the total assets as reflected on the most recent balance sheet existing at the time the shareholders of the Company would be required to approve or authorize the Business Combination involving the assets constituting any such Substantial Part.
Lobbying: How Much Is Allowed?There are two tests for determining the extent of allowable lobbying by health centers under the IRC: ♦ “Substantial Part” Test ♦ “Expenditure” Test The Substantial Part Test – provides that a charitable organization, such as a health center, can lose its Federal tax exemption if, in any given year, a “substantial part” of its activities consists of carrying on propaganda or otherwise attempting to influence legislation.
However, there is no precise definition under the Substantial Part Test of exactly what kinds of activities are considered lobbying, nor does the test define the amount of such activities that can be conducted without endangering an organization’s tax exemption.
All of the current year’s revenues and expenses are accounted for in the statement of revenue, expenses, and changes in net assets.
It is important to remember, however, that the definitions and concepts contained in the IRS regulations apply only to charitable organizations that have elected the Section 501 (h) Expenditure Test.Non-electing charities continue to be covered under the Substantial Part Test.lobbying measured by the amount of funds they expend for lobbying purposes, as opposed to the amount of their activities (as is the case under the Substantial Part Test).