Organizational Test
SEE ALSO: Public Support Test
From IRS.gov[1]
The organizational test requires that the articles of organization (hereafter “creating document”) of an organization described in IRC 501(c)(3) contain an explicit statement that its purposes are 501(c)(3) exempt purposes. The organizational test also requires an appropriate dissolution provision unless operation of state law or court action produces the same result. Private foundations have additional organizational test requirements.
An organization’s creating document may be articles of incorporation, articles of association, trust indenture, or constitution. A limited liability company’s (LLC’s) creating document is its state-approved articles of organization. If an LLC has adopted an operating agreement then this document is part of the creating document, but it would not, separately, be required to meet the organizational test. The required provisions in the creating document or state law are important because they subject an organization to enforcement of these provisions by appropriate Federal, State, and judicial authorities.
Resources
IRS.gov: Organizational Test
IRS.gov: THE ORGANIZATIONAL TEST UNDER IRC 501(c)(3)
Digital Media Law Project: The Organizational Test