A bill to amend the Internal Revenue Code of 1954 with respect to lobbying by certain types of exempt organizations.

Provides that a charitable organization shall be denied exemption from taxation under the Internal Revenue Code where amounts paid or incurred by such organization during each taxable year to influence legislation, including an attempt to affect the opinion of the general public, normally exceeds five percent of the yearly expenditures; or where such amounts exceed twenty percent of the yearly expenditures in any attempt to influence legislation, on a matter which directly affects any purpose for which the organization is organized, through communication with its own members or with any member or employee of a legislative body, or with any other government official or employee who may participate in the formulation of the legislation.

Defines charitable organization for purposes of this Act, and designates certain activities which are not included within the term "influence legislation".

Provides that no income tax deduction shall be allowed for a contribution to a charitable organization if the contribution is made for the purpose of influencing legislation. (Amends 26 U.S.C. 501, 170)