List a charity's described system uses against the operational test

Key facts

Human involvement

Yellow · Close supervision

How AI is used

List each use of a system described in the file and the purpose the file gives for it. Set that list beside the operational test. Do not state a governance standard the opened regulation does not contain, and do not write the advice.

What the lawyer must review

You write the advice. Treasury Regulation § 1.501(c)(3)-1(a) requires an organisation described in section 501(c)(3) to be both organised and operated exclusively for one or more of the purposes specified in that section. Under § 1.501(c)(3)-1(c)(1), an organisation is regarded as operated exclusively for exempt purposes only if it engages primarily in activities which accomplish one or more of those purposes, and it will not be so regarded if more than an insubstantial part of its activities is not in furtherance of an exempt purpose. Under § 1.501(c)(3)-1(c)(2), it is not so regarded if its net earnings inure in whole or in part to the benefit of private shareholders or individuals. Under § 1.501(c)(3)-1(c)(3), it is not so regarded if it is an action organisation, including if it participates or intervenes in any political campaign on behalf of or in opposition to any candidate for public office. The opened regulation does not state a separate standard for the use of a generative system. The IRS exemption page for section 501(c)(3) organisations is the agency's account of those exemption requirements. Do not tell the charity that a system, or a review of it, has settled the operational test.

Written for / version

United States versionUS