; or (B) the country of incorporation or the principal place of business for a foreign principal which is a legal entity. (4) Covered entity The term covered entity — (A) means a nonprofit organization or a not-for-profit social welfare organization that— (i) spends more than 20 percent of its resources within any given calendar year on conduct intending to directly or indirectly influence public policy or public opinion; or (ii) is affiliated with or is a sub-unit of an institution subject to section 117 of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ) that— (I) engages in or publishes substantial policy-related research or scholarship; or (II) hosts, sponsors, or otherwise promotes annual, or on a more frequent basis, events featuring reporters, journalists, or U.S. or foreign government officials; and (B) excludes— (i) an institution subject to section 117 of the Higher Education Act of 1965 ( 20 U.S.C. 1011f ); and (ii) an entity organized and operated exclusively for religious purposes. (5) Foreign principal The term foreign principal includes— (A) a government of a foreign country and a foreign political party; (B) a person outside of the United States, unless it is established that such person is an individual and a citizen of the United States, or that such person is not an individual and is organized under or created by the laws of the United States or of any State or other place subject to the jurisdiction of the United States and has its principal place of business within the United States