Checklist · Not-for-Profit, Charities & Associations
Section 501(c)(3) operational limits checklist
Checklist of the operational limits in section 501(c)(3) and in the Form 1023 instructions. It screens activities. It does not decide that an organisation is exempt.
- Kind
- Checklist. Steps or checks to work through and tick off.
- Where it applies
- United States
- AI use
- Yellow You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at
- 22 October 2026
- Status
- Maintained. Checked on 22 October 2026 against the 2 authorities it cites, for United States.
- Version
- 1
- Source
- Written for this library
When to use it
Use when a lawyer is screening a section 501(c)(3) organisation's activities against the statute and the Form 1023 instructions. Do not use it as an exemption application or as a private-foundation calculation.
Used for these tasks
- Build a charitable-purpose and public-benefit table
- Draft a charity-registration application narrative
Each task page says how far AI may help with the task and what the lawyer must review.
How AI may be used
Yellow: the lawyer applies the statute to the organisation's actual activities and does not treat this list as a determination.
AI may
- Quote the operative limits in section 501(c)(3) and the activity limits in the Form 1023 instructions.
- Note that section 501(a) exemption is denied if section 502 or 503 applies, without describing those sections.
- Record that every section 501(c)(3) organisation is a private foundation unless a public-charity exception applies.
AI must not
- Do not decide that the organisation is exempt or is a public charity.
- Do not explain the section 501(h) election. Subsection (h) was not applied.
- Do not calculate a public-support fraction. Sections 509 and 170 were not opened.
- Do not complete Form 1023.
The lawyer checks
- Read section 501(h) before treating any legislative activity as permitted.
- Read sections 502 and 503 before saying exemption is available.
- Classify public charity or private foundation only after reading sections 509 and 170.
- Match each activity to the narrative the organisation can support.
Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.
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