---
title: "List a charity's described system uses against the operational test"
url: "https://ailawframework.com/practice/not-for-profit-charities-and-associations/advise-a-charity-on-ai-governance-duties-under-acnc-standards/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A35-B8-2-US"
practice_area: "Not-for-Profit, Charities & Associations"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

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

> 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.…

Canonical page: https://ailawframework.com/practice/not-for-profit-charities-and-associations/advise-a-charity-on-ai-governance-duties-under-acnc-standards/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Not-for-Profit, Charities & Associations](https://ailawframework.com/practice/not-for-profit-charities-and-associations.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| 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 | United States |
| Applies to | [Advise a charity on AI governance duties under ACNC standards](https://ailawframework.com/practice/not-for-profit-charities-and-associations/advise-a-charity-on-ai-governance-duties-under-acnc-standards.md) |

## Checking plan

- What the AI does: 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.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- The opened regulation states no separate rule for a generative system. Do not add one.
- Private inurement and action-organisation status are separate from whether an activity furthers an exempt purpose. Record the fact the file actually contains.
- The advice to the board is yours.

## Sources

- [26 CFR § 1.501(c)(3)-1, organisations organised and operated for exempt purposes](https://www.law.cornell.edu/cfr/text/26/1.501(c)(3)-1) (checked 2026-10-22)
- [IRS, Exemption requirements for 501(c)(3) organisations](https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-501c3-organizations) (checked 2026-10-22)

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*