---
title: "Prepare articles of organisation against the section 501(c)(3) organisational test"
url: "https://ailawframework.com/practice/not-for-profit-charities-and-associations/draft-a-constitution-or-rules-from-the-model-and-the-client-s-objects/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A35-T1-R3-US"
practice_area: "Not-for-Profit, Charities & Associations"
tier: "red"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Prepare articles of organisation against the section 501(c)(3) organisational test

> List each purpose in the draft articles and whether the regulation's organisational test, as opened, asks a question about that purpose, about non-exempt powers, about campaign activity, or about assets on dissolution.…

Canonical page: https://ailawframework.com/practice/not-for-profit-charities-and-associations/draft-a-constitution-or-rules-from-the-model-and-the-client-s-objects/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 | Red: Lawyer writes; AI may check, clarify or collect data |
| How AI is used | List each purpose in the draft articles and whether the regulation's organisational test, as opened, asks a question about that purpose, about non-exempt powers, about campaign activity, or about assets on dissolution. Write no article. |
| What the lawyer must review | You write the articles. Treasury Regulation § 1.501(c)(3)-1(a) requires an organisation to be both organised and operated exclusively for one or more of the purposes in section 501(c)(3). Under paragraph (b), the articles meet the organisational test only if they limit the organisation to exempt purposes, do not expressly empower it to carry on, otherwise than as an insubstantial part, activities that are not in furtherance of an exempt purpose, and do not state purposes broader than section 501(c)(3). Actual operations that happen to be exempt do not cure articles that fail the test. The articles must not expressly empower the organisation to devote more than an insubstantial part of its activities to influencing legislation, or to participate or intervene in a political campaign for or against a candidate, subject to the section 501(h) election described in the regulation. Assets must be dedicated to an exempt purpose. Dedication may be shown if, on dissolution, assets would by the articles or by operation of law go to an exempt purpose, to the federal government, or to a state or local government for a public purpose, or be distributed by a court for the dissolved organisation's general purposes. The organisational test is not met if the articles or the law of the state of creation distribute assets on dissolution to members or shareholders. The law of the state of creation controls the meaning of the articles. You choose the state form. No state nonprofit statute was opened. |
| Written for | United States |
| Applies to | [Draft a constitution or rules from the model and the client's objects](https://ailawframework.com/practice/not-for-profit-charities-and-associations/draft-a-constitution-or-rules-from-the-model-and-the-client-s-objects.md) |

## Checking plan

- What the AI does: List each purpose in the draft articles and whether the regulation's organisational test, as opened, asks a question about that purpose, about non-exempt powers, about campaign activity, or about assets on dissolution. Write no article.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Form 1023 is filed electronically through Pay.gov. Form 1023-EZ is available only if the eligibility worksheet says so. The December 2024 instructions were not parsed. An LLC must meet Notice 2021-56, which was not opened.
- Do not use an Australian model constitution as articles that meet this regulation.

## Sources

- [26 CFR § 1.501(c)(3)-1, organisational and operational tests](https://www.law.cornell.edu/cfr/text/26/1.501(c)(3)-1) (checked 2026-10-22)
- [26 U.S.C. § 501, exemption from tax on corporations, certain trusts, etc.](https://www.law.cornell.edu/uscode/text/26/501) (checked 2026-10-22)
- [IRS, About Form 1023, Application for Recognition of Exemption Under Section 501(c)(3)](https://www.irs.gov/forms-pubs/about-form-1023) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Section 501(c)(3) organizing document checklist](https://ailawframework.com/precedents/not-for-profit-charities-and-associations/us-organizing-document.md) | Checklist | Yellow | Checklist for the purpose clause and dissolution clause the Form 1023 instructions say an organising document must contain. It does not amend the document or complete the form. |

Signed-in accounts can read the full text of each one.

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