Compare a section 501(c)(3) charity with a section 501(c)(4) social-welfare organisation
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Put the client's purposes and activities beside the statutory words for section 501(c)(3) and for section 501(c)(4)(A) and (B). Write no conclusion on which paragraph fits.
- What the lawyer must review
- You choose the structure. Section 501(c)(3) describes corporations, community chests, funds or foundations organised and operated exclusively for religious, charitable, scientific, testing for public safety, literary or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involves providing athletic facilities or equipment), or for the prevention of cruelty to children or animals. No part of the net earnings may inure to a private shareholder or individual. No substantial part of the activities may be carrying on propaganda or otherwise attempting to influence legislation, except as subsection (h) provides. The organisation must not participate or intervene in any political campaign on behalf of or in opposition to any candidate for public office. Section 501(c)(4)(A), as opened, describes civic leagues or organisations not organised for profit but operated exclusively for the promotion of social welfare, or local associations of employees whose membership is limited to employees of a designated person or persons in a particular municipality, with net earnings devoted exclusively to charitable, educational or recreational purposes. Section 501(c)(4)(B) says subparagraph (A) does not apply unless no part of the net earnings inures to a private shareholder or individual. The Internal Revenue Service states that an organisation described in section 501(c)(3), other than a testing-for-public-safety organisation, is eligible to receive tax-deductible contributions under section 170. You do not add a lobbying or campaign rule for a social-welfare organisation from memory.
- Written for / version
- United States versionUSAU
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 appropriate instructions, permissions and cultural context with the relevant people before using information or communicating the result.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- 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.