Under what condition can a 501(c)3h organization lobby?

A 501(c)(3) organization, which is designated as a tax-exempt nonprofit, is permitted to engage in lobbying activities as long as that lobbying is not considered substantial in comparison to its overall activities. This means that while these organizations can advocate for policy changes and engage in lobbying efforts, those efforts must not dominate the organization’s activities or resources.

The IRS allows some level of lobbying, but it restricts it to ensure that the organization's primary mission remains charitable, educational, or religious in nature. By defining lobbying as non-substantial, it maintains the integrity of the organization’s tax-exempt status. If lobbying were to become a primary purpose or excessively consume resources, it could jeopardize the organization's ability to maintain its 501(c)(3) status.

In summary, a 501(c)(3) organization can indeed participate in lobbying, but it must ensure that these activities do not constitute a substantial portion of its overall operations or budget. Therefore, the correct condition under which a 501(c)(3) organization can lobby is that lobbying cannot be substantial compared to other activities.