Compare a non-charity nonprofit's articles with section 501(c)(4)
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Quote the purpose clause and any clause about net earnings, and place each beside section 501(c)(4)(A) or (B). Mark a clause that states a charitable deduction. Write no exemption application and no self-review conclusion.
- What the lawyer must review
- You decide whether the organisation meets section 501(c)(4). Section 501(c)(4)(A) describes civic leagues or organisations not organised for profit but operated exclusively for the promotion of social welfare, or local associations of employees, the membership of which is limited to the employees of a designated person or persons in a particular municipality, and the net earnings of which are devoted exclusively to charitable, educational, or recreational purposes. Section 501(c)(4)(B) provides that subparagraph (A) shall not apply to an entity unless no part of the net earnings inures to the benefit of any private shareholder or individual. This is not section 501(c)(3). The IRS page that states eligibility for a section 170 deduction was read for section 501(c)(3), other than testing for public safety, and it was not read as a rule for section 501(c)(4). No lobbying or campaign rule for a section 501(c)(4) organisation was opened. The credit-counselling notice in section 501(q) was not applied. ABA Formal Opinion 512 requires independent verification of the comparison.
- Written for / version
- United States versionUSCth
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Confirm instructions and personal circumstances through appropriate direct engagement. Have the responsible lawyer assess safety, capacity or vulnerability concerns and escalation.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.