Test an organization against the section 501(c)(3) description
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Extract the organization's stated purposes and the activities in the file into a list beside the 501(c)(3) clauses. Do not decide exemption.
- What the lawyer must review
- IRC 501(c)(3) describes corporations, and any community chest, fund, or foundation, organized 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 the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals. No part of the net earnings may inure to the benefit of any private shareholder or individual. No substantial part of the activities may be carrying on propaganda, or otherwise attempting, to influence legislation, except as otherwise provided in subsection (h). The organization may not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of or in opposition to any candidate for public office. Subsection (h) was not read. The IRS exemption-requirements page restates that the organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), that none of its earnings may inure to any private shareholder or individual, that it may not attempt to influence legislation as a substantial part of its activities, and that it may not participate in any campaign activity for or against political candidates. The same page says an excess-benefit transaction with a person having substantial influence may result in an excise tax on that person and on organization managers who agree to it. The linked organizational-test, operational-test, inurement, and intermediate-sanctions pages were not opened. Do not treat a sporting club as a 501(c)(3) organization from the amateur-sports clause alone.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes extracting and organising information and preparing preliminary structure or wording. Confirm the tool’s capability and 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
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- 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.