Specialized Returns and Taxpayers · Exempt organizations
Qualifying for and maintaining tax-exempt status (e.g., IRC 501(c))
tax year · reviewed 2026-08-21 · Draft for I. Ohu review
Exempt status is not a reward for being a good cause. It is a statutory classification, and the statute asks two different questions: what does the charter say, and what does the organisation do. An organisation can fail on either alone, and the common error is to answer the second well and never read the articles.
The rule
Exemption runs by category, not by merit. an organization described in IRC § 501(c) or (d) or § 401(a) is exempt from taxation under subtitle A unless the exemption is denied under § 502 or § 503, but remains subject to tax on unrelated business income and certain other activities (IRC § 501(a), (b))TY2026 There is no general exemption for worthy activity; an organisation is exempt because it fits one of the paragraphs of IRC § 501(c), and the paragraph it fits governs everything else about it. Paragraph (3) is the one with deductible contributions attached and the one carrying the heaviest restrictions (IRC § 501(c)(3)). a corporation, community chest, fund or foundation organised and operated exclusively for religious, charitable, scientific, public-safety testing, literary or educational purposes, to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals; no part of its net earnings inuring to any private shareholder or individual; no substantial part of its activities carrying on propaganda or otherwise attempting to influence legislation; and not participating or intervening in any political campaign for or against a candidate for public office (IRC § 501(c)(3))TY2026 A civic league is a different animal: 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 the employees of a designated person in a particular municipality and whose net earnings are devoted exclusively to charitable, educational or recreational purposes (IRC § 501(c)(4)(A))TY2026 A social club is different again: clubs organised for pleasure, recreation and other nonprofitable purposes, substantially all the activities of which are for those purposes and no part of the net earnings of which inures to the benefit of any private shareholder (IRC § 501(c)(7))TY2026 Only the first of these can receive a charitable contribution deduction, and only the first is subject to the campaign intervention ban.
Both tests, always. an organisation must be both organised and operated exclusively for one or more of the purposes specified in IRC § 501(c)(3); failing either test defeats the exemption (Treas. Reg. § 1.501(c)(3)-1(a)(1))TY2026 Sequence matters when advising a new organisation: the articles are drafted before there is any activity to test, so the organisational test is the one that can be got right in advance — and the one most often botched.
The organisational test is a document test. an organisation is organised exclusively for exempt purposes only if its articles limit its purposes to one or more exempt purposes and do not expressly empower it to engage, otherwise than as an insubstantial part of its activities, in activities that are not in furtherance of an exempt purpose (Treas. Reg. § 1.501(c)(3)-1(b)(1)(i))TY2026 Articles stating a purpose “to engage in any lawful activity” fail, because they expressly empower substantial non-exempt activity. A second requirement is missed more often: assets must be dedicated to an exempt purpose — satisfied where, on dissolution, the articles or state law send the assets to another exempt purpose or to federal, state or local government for a public purpose; an organisation fails the organisational test if its articles or state law would distribute assets to members or shareholders (Treas. Reg. § 1.501(c)(3)-1(b)(4))TY2026 A state non-profit corporation act supplying a default dissolution rule can carry the day, but relying on state law without reading it is a gamble.
The operational test is an activity test. an organisation is operated exclusively for exempt purposes only if it engages primarily in activities accomplishing those purposes, and not if more than an insubstantial part of its activities is not in furtherance of an exempt purpose (Treas. Reg. § 1.501(c)(3)-1(c)(1))TY2026 “Insubstantial” is not defined by percentage anywhere in the regulation. A single non-exempt purpose, if substantial, defeats exemption no matter how many exempt purposes sit beside it.
Charitable is broader than charity (Reg. § 1.501(c)(3)-1(d)(2)). charitable is used in its generally accepted legal sense and includes relief of the poor, distressed or underprivileged; advancement of religion, education or science; erection or maintenance of public buildings, monuments or works; lessening the burdens of government; and promotion of social welfare by organisations designed to lessen neighbourhood tensions, eliminate prejudice and discrimination, defend human and civil rights secured by law, or combat community deterioration and juvenile delinquency (Treas. Reg. § 1.501(c)(3)-1(d)(2))TY2026 Lessening the burdens of government is the category most often overlooked.
Inurement and private benefit are two rules, not one. an organisation is not operated exclusively for exempt purposes if its net earnings inure in whole or in part to the benefit of private shareholders or individuals (Treas. Reg. § 1.501(c)(3)-1(c)(2))TY2026 Inurement concerns insiders and is absolute: any inurement, in any amount, is fatal in principle. an organisation must serve a public rather than a private interest — it fails if it is operated for the benefit of private interests such as designated individuals, the creator or the creator’s family, shareholders of the organisation, or persons controlled directly or indirectly by those private interests (Treas. Reg. § 1.501(c)(3)-1(d)(1)(ii))TY2026 Private benefit is broader — it reaches outsiders too — but it is tolerated when incidental. Confusing the two produces bad advice in both directions.
Lobbying: a vague test or an arithmetic one. The default is the substantial part test. an organisation is an action organisation, and so fails the operational test, if a substantial part of its activities is attempting to influence legislation by propaganda or otherwise — contacting or urging the public to contact members of a legislative body to propose, support or oppose legislation, or advocating the adoption or rejection of legislation (Treas. Reg. § 1.501(c)(3)-1(c)(3)(ii))TY2026 an organisation is also an action organisation where its main objective may be attained only by legislation or the defeat of proposed legislation and it advocates or campaigns for that attainment, rather than engaging in nonpartisan analysis, study or research and making the results available to the public (Treas. Reg. § 1.501(c)(3)-1(c)(3)(iv))TY2026 Because “substantial” has no bright line, an eligible charity may elect out of it. an electing public charity loses exemption for lobbying only if it normally makes lobbying expenditures above its lobbying ceiling amount or grass roots expenditures above its grass roots ceiling amount, each ceiling being 150 percent of the corresponding nontaxable amount determined under IRC § 4911 (IRC § 501(h)(1), (2))TY2026 the IRC § 501(h) election is open to organisations described in IRC § 501(c)(3) that are also described in the public charity categories of IRC § 170(b)(1)(A) — educational institutions, hospitals and medical research organisations, organisations supporting government schools, publicly supported organisations, agricultural research organisations and the rest — and that are not disqualified organisations; churches, their integrated auxiliaries and conventions or associations of churches may not elect (IRC § 501(h)(3), (4), (5))TY2026 The elected limit is computed: the lobbying nontaxable amount is the lesser of $1,000,000 or: 20 percent of exempt purpose expenditures not over $500,000; $100,000 plus 15 percent of the excess over $500,000 where expenditures are over $500,000 but not over $1,000,000; $175,000 plus 10 percent of the excess over $1,000,000 where they are over $1,000,000 but not over $1,500,000; and $225,000 plus 5 percent of the excess over $1,500,000 above that (IRC § 4911(c)(2))TY2026 the grass roots nontaxable amount is 25 percent of the lobbying nontaxable amount for the same taxable year (IRC § 4911(c)(4))TY2026 An organisation over the nontaxable amount but under the ceiling pays an excise tax and keeps its exemption; one that loses exemption for lobbying pays besides. an organisation that loses IRC § 501(c)(3) status for a year by reason of making lobbying expenditures owes a tax of 5 percent of those expenditures, and a manager who knowingly and willfully agreed to them without reasonable cause owes a further 5 percent (IRC § 4912(a), (b))TY2026
Campaign intervention is absolute. an organisation is an action organisation if it participates or intervenes, directly or indirectly, in any political campaign on behalf of or in opposition to any candidate for public office, including publishing or distributing written statements and making oral statements for or against a candidate (Treas. Reg. § 1.501(c)(3)-1(c)(3)(iii))TY2026 There is no insubstantial-amount allowance here and no election. There is, however, a sanction short of revocation: a political expenditure by an IRC § 501(c)(3) organisation carries an initial tax of 10 percent on the organisation and 2.5 percent on a manager who knowingly agreed to it without reasonable cause; if the expenditure is not corrected within the taxable period the organisation owes 100 percent (IRC § 4955(a), (b))TY2026
Intermediate sanctions. an excess benefit transaction is one in which an applicable tax-exempt organisation provides an economic benefit, directly or indirectly, to or for the use of a disqualified person worth more than the consideration received — and an economic benefit is not treated as consideration for services unless the organisation clearly indicated its intent to treat it that way (IRC § 4958(c)(1))TY2026 an excess benefit transaction carries an initial tax of 25 percent of the excess benefit payable by the disqualified person, and 10 percent of the excess benefit payable by any organisation manager who knowingly participated, unless that participation was not willful and was due to reasonable cause (IRC § 4958(a))TY2026 where the excess benefit is not corrected within the taxable period, a further tax of 200 percent of the excess benefit is imposed on the disqualified person (IRC § 4958(b))TY2026 The tax falls on the person who received the benefit and on the managers who approved it, not on the charity.
Feeder organisations. a feeder organisation — one operated for the primary purpose of carrying on a trade or business for profit — is not exempt merely because all its profits are payable to exempt organisations, though rents excludable under IRC § 512(b)(3), a business in which substantially all the work is done without compensation, and the sale of donated merchandise are not counted as a trade or business for this purpose (IRC § 502)TY2026 Destination of income is not the test; the character of the activity is.
Public charity or private foundation. private foundation means any domestic or foreign IRC § 501(c)(3) organisation other than one described in IRC § 170(b)(1)(A) other than clauses (vii) and (viii), one meeting the one-third public support and one-third investment income tests of IRC § 509(a)(2), a supporting organisation under IRC § 509(a)(3), or an organisation operated exclusively for testing for public safety (IRC § 509(a))TY2026 The classification is a default: any organisation described in IRC § 501(c)(3) that does not notify the Secretary that it is not a private foundation is presumed to be one. Neither the notice requirement nor the presumption applies to churches, their integrated auxiliaries and conventions or associations of churches, or to an organisation that is not a private foundation and whose gross receipts are normally not more than $5,000 in each taxable year (IRC § 508(b), (c)(1))TY2026 A private foundation faces the chapter 42 excise regime and lower contribution ceilings, so run the support tests early.
Maintaining status is an annual filing obligation. every organisation exempt under IRC § 501(a) must file an annual return stating its items of gross income, receipts and disbursements and such other information as the Secretary prescribes, and must keep records — subject to the mandatory exceptions for churches, their integrated auxiliaries and conventions or associations of churches, the exclusively religious activities of a religious order, and certain listed organisations other than private foundations whose gross receipts are normally not more than $5,000 (IRC § 6033(a)(1), (a)(3))TY2026 an organisation relieved of the annual return by the gross receipts exception must nonetheless furnish annually, in electronic form, its legal name, mailing and web addresses, taxpayer identification number, the name and address of a principal officer, and evidence of the continuing basis for the exception — and must give notice when it ceases to exist (IRC § 6033(i))TY2026 any organisation required to file a return under IRC § 6033 must file it in electronic form (IRC § 6033(n), added by Pub. L. 116-25 § 3101(a) on 1 July 2019)TY2026 after two consecutive missed annual returns or notices the Secretary must notify the organisation that the Service has no record of a filing for two consecutive years and warn it about the revocation that follows a third — a step added to IRC § 6033(j)(1) by Pub. L. 116-25 § 3102(a) on 1 July 2019TY2026 an organisation that fails to file the annual return or notice for 2 consecutive years is notified by the Secretary; one that fails for 3 consecutive years has its IRC § 501(a) exempt status revoked on and after the due date set for the third return or notice, and the Secretary publishes and maintains a list of the organisations revoked (IRC § 6033(j)(1))TY2026 an organisation whose exemption is automatically revoked must apply for reinstatement whether or not it was originally required to apply, and reinstatement may be made retroactive to the date of revocation if the organisation shows reasonable cause for each of the three failures (IRC § 6033(j)(2), (3))TY2026
If the Service says no. a case of actual controversy over the initial or continuing qualification of an organisation under IRC § 501(c)(3) or § 170(c)(2), over private foundation or private operating foundation classification, or over the Secretary’s failure to determine any of those, may be taken for declaratory judgment to the United States Tax Court, the Court of Federal Claims or the District Court for the District of Columbia (IRC § 7428(a))TY2026
Current figures
| Item | 2026 |
|---|---|
| Organizational test | an organisation is organised exclusively for exempt purposes only if its articles limit its purposes to one or more exempt purposes and do not expressly empower it to engage, otherwise than as an insubstantial part of its activities, in activities that are not in furtherance of an exempt purpose (Treas. Reg. § 1.501(c)(3)-1(b)(1)(i))TY2026 |
| Dedication of assets | assets must be dedicated to an exempt purpose — satisfied where, on dissolution, the articles or state law send the assets to another exempt purpose or to federal, state or local government for a public purpose; an organisation fails the organisational test if its articles or state law would distribute assets to members or shareholders (Treas. Reg. § 1.501(c)(3)-1(b)(4))TY2026 |
| Operational test | an organisation is operated exclusively for exempt purposes only if it engages primarily in activities accomplishing those purposes, and not if more than an insubstantial part of its activities is not in furtherance of an exempt purpose (Treas. Reg. § 1.501(c)(3)-1(c)(1))TY2026 |
| Private benefit | an organisation must serve a public rather than a private interest — it fails if it is operated for the benefit of private interests such as designated individuals, the creator or the creator’s family, shareholders of the organisation, or persons controlled directly or indirectly by those private interests (Treas. Reg. § 1.501(c)(3)-1(d)(1)(ii))TY2026 |
| Lobbying — IRC § 501(h) ceiling | an electing public charity loses exemption for lobbying only if it normally makes lobbying expenditures above its lobbying ceiling amount or grass roots expenditures above its grass roots ceiling amount, each ceiling being 150 percent of the corresponding nontaxable amount determined under IRC § 4911 (IRC § 501(h)(1), (2))TY2026 |
| Lobbying nontaxable amount | the lobbying nontaxable amount is the lesser of $1,000,000 or: 20 percent of exempt purpose expenditures not over $500,000; $100,000 plus 15 percent of the excess over $500,000 where expenditures are over $500,000 but not over $1,000,000; $175,000 plus 10 percent of the excess over $1,000,000 where they are over $1,000,000 but not over $1,500,000; and $225,000 plus 5 percent of the excess over $1,500,000 above that (IRC § 4911(c)(2))TY2026 |
| Grass roots nontaxable amount | the grass roots nontaxable amount is 25 percent of the lobbying nontaxable amount for the same taxable year (IRC § 4911(c)(4))TY2026 |
| Tax on political expenditures | a political expenditure by an IRC § 501(c)(3) organisation carries an initial tax of 10 percent on the organisation and 2.5 percent on a manager who knowingly agreed to it without reasonable cause; if the expenditure is not corrected within the taxable period the organisation owes 100 percent (IRC § 4955(a), (b))TY2026 |
| Intermediate sanctions — initial tax | an excess benefit transaction carries an initial tax of 25 percent of the excess benefit payable by the disqualified person, and 10 percent of the excess benefit payable by any organisation manager who knowingly participated, unless that participation was not willful and was due to reasonable cause (IRC § 4958(a))TY2026 |
| Intermediate sanctions — additional tax | where the excess benefit is not corrected within the taxable period, a further tax of 200 percent of the excess benefit is imposed on the disqualified person (IRC § 4958(b))TY2026 |
| Automatic revocation | an organisation that fails to file the annual return or notice for 2 consecutive years is notified by the Secretary; one that fails for 3 consecutive years has its IRC § 501(a) exempt status revoked on and after the due date set for the third return or notice, and the Secretary publishes and maintains a list of the organisations revoked (IRC § 6033(j)(1))TY2026 |
How it works in practice
Read the articles first — the certified copy filed with the state, not the draft in the client’s folder and not the bylaws. Two clauses matter: purposes and dissolution. If the purposes clause tracks the statutory language and the dissolution clause dedicates assets to exempt purposes or to a government unit, the organisational test is met. If it does not, the fix is an amendment filed with the state, and until it is filed the organisation is not described in IRC § 501(c)(3) whatever it does.
Then look at where the money goes, because the operational test is not answered by the mission statement. Compensation to the founder, rent paid to an entity the founder owns and purchases from a board member’s business are the three items that turn a well-meaning charity into an inurement problem. None is automatically fatal — reasonable compensation for services actually rendered is not inurement — but each needs documentation that the amount was set at fair value by people with no stake in it.
For advocacy work, decide early whether to make the IRC § 501(h) election. For a charity that lobbies at all the arithmetic is usually the better deal: the substantial part test has no safe harbour and an adverse finding costs the exemption outright, while an electing organisation that overshoots the nontaxable amount pays an excise tax and stays exempt. Churches and their integrated auxiliaries may not elect — they also stand outside the IRC § 508 notice requirement.
On maintenance the calendar is the whole job. Automatic revocation is not discretionary and requires no finding about the organisation’s activities; it is arithmetic run against a filing record, and it catches the charity that thinks itself too small to file.
The lawful-purpose articles
A community food pantry incorporates using the lawyer’s standard form. Article III reads: “The purpose of the corporation is to engage in any lawful activity for which corporations may be organized under this chapter.” Article VII says assets are to be distributed on dissolution “as the board of directors shall determine.” The pantry has fed four hundred families a month for two years, has never paid anyone connected with it a dollar, and now applies for recognition.
It fails the organisational test twice over. The purposes clause expressly empowers the pantry to engage in any lawful activity — far more than an insubstantial amount of non-exempt activity — and the dissolution clause dedicates nothing. That the operations are impeccably charitable is beside the point: the regulation requires both tests, and this one fails on the document. Amend the articles, then weigh whether the application can still reach back to formation. The activity record supports a request for the earlier effective date; it cannot substitute for the amendment.
The founder's salary
A youth arts organisation with revenue of about $900,000 has as its executive director the founder, who is also one of five board members; the other four are the founder’s spouse, the spouse’s business partner and two long-time friends. The board set compensation at $310,000 with no comparability data and no minutes recording a discussion. A later study puts the market rate at $150,000.
The $160,000 spread is an excess benefit. The founder is a disqualified person, the organisation provided an economic benefit exceeding the value of the services received, and the initial tax is 25 percent of the excess — $40,000 — payable by the founder, not by the charity. The four directors who approved it are organisation managers; knowing participation that was willful and without reasonable cause draws the 10 percent manager tax. If the founder does not correct within the taxable period, the additional tax is 200 percent, or $320,000. Note what is not automatic: the organisation does not lose its exemption. That is the point of intermediate sanctions.
The candidate forum
A voter education charity holds a debate among the four candidates for a state senate seat. All four are invited, questions come from written audience submissions, each gets equal time, and the moderator offers no opinion. Two weeks later the executive director publishes a signed column in the organisation’s newsletter urging readers to support one of the four by name.
The forum itself is fine: a genuinely non-partisan forum open to all candidates on equal terms is voter education, not intervention. The newsletter column is not. It is a written statement, distributed by the organisation, on behalf of a candidate for public office — squarely within the regulation’s description of an action organisation, and the ban admits no insubstantial-amount allowance. The exposure is both the excise tax on the political expenditure and the exemption itself. That the director wrote in a personal capacity does not help once the piece runs in the organisation’s own publication at the organisation’s expense.
The bylaws are not the articles. The organisational test looks to the articles of organisation — the instrument filed with the state — and the regulation says so in terms. Model purposes and dissolution clauses sitting in the bylaws satisfy nothing, and neither does a board resolution.
Insubstantial has no percentage. Practitioners reach for a five percent rule of thumb, or for the lowest bracket of the IRC § 501(h) table, and neither appears in the operational test. The IRC § 4911 figures apply only to an organisation that has made the election; for everyone else the standard is facts and circumstances.
Lobbying and campaign intervention have different rules, and the exam mixes them. A charity may lobby within limits and may elect a numerical limit; it may not intervene in a campaign at all, and no election changes that. Answers offering a “substantial part” allowance for campaign activity, or an absolute prohibition on lobbying, are wrong in opposite directions.
Automatic revocation is automatic. It happens by operation of IRC § 6033(j)(1)(B) on the due date of the third missed return, without an examination, a notice of deficiency or any finding about the organisation’s work. The only pre-revocation step is the warning letter added in 2019, and one sent to a stale address on file still counts as sent.
How this has changed
IRC § 4958 was added by Pub. L. 104-168 § 1311(a) on 30 July 1996 and expanded by the Pension Protection Act, Pub. L. 109-280, on 17 August 2006. Before 1996 the Service’s only real weapon against private benefit was revocation, so the question in a compensation case is now usually who owes the excise tax rather than whether the charity survives.
Automatic revocation under IRC § 6033(j) came from the same 2006 Act and first bit in 2010, when the clock ran out for organisations that had no filing obligation before the IRC § 6033(i) electronic notice was created. The Taxpayer First Act, Pub. L. 116-25, softened one edge and hardened another on 1 July 2019: § 3102(a) added the two-year warning letter now at IRC § 6033(j)(1)(A), and § 3101(a) added IRC § 6033(n), making electronic filing mandatory for every return under the section.
The most recent change is narrow: Pub. L. 119-21 § 70415(b), enacted 4 July 2025, added IRC § 6033(o), requiring an applicable educational institution subject to the endowment excise tax to report its tuition-paying and total student counts on the annual return.
Exam focus
Expect one question giving facts about what an organisation does and another giving charter language, both asking whether it qualifies. Keep the two tests separate; the answer to one does not carry over.
Know the IRC § 501(c)(3) purposes as a list, because the classic question offers four options of which one is not on it: religious, charitable, scientific, testing for public safety, literary, educational, fostering amateur sports competition, preventing cruelty to children or animals. Anything phrased as economic development, business promotion or member benefit is the distractor.
Know that lobbying is limited while campaign intervention is prohibited, that the IRC § 501(h) election exists and who may make it, the intermediate sanctions percentages, and that automatic revocation takes three consecutive years with a fresh application required to be reinstated.
Check yourself
1. An organisation’s articles say its purpose is “to promote the welfare of the community by any means the board deems appropriate,” and its dissolution clause is silent. It has operated a free legal clinic for five years. Does it meet the organisational test?
Answer: No, and neither defect is cured by the clinic’s record. “By any means the board deems appropriate” expressly empowers substantial non-exempt activity, contrary to Treas. Reg. § 1.501(c)(3)-1(b)(1)(i)(b), and the silent dissolution clause fails Treas. Reg. § 1.501(c)(3)-1(b)(4) unless state law supplies a dedication — which must be checked, not assumed.
2. A charity that has made the IRC § 501(h) election has exempt purpose expenditures of $1,200,000 for the year and spends $190,000 on lobbying, of which $60,000 is grass roots. Has it lost its exemption?
Answer: No. The lobbying nontaxable amount is $175,000 plus 10 percent of $200,000, or $195,000, so the $190,000 of total lobbying draws no tax. The grass roots nontaxable amount is 25 percent of that, or $48,750, so the $60,000 of grass roots spending exceeds it by $11,250 and draws the IRC § 4911 tax. Exemption is lost only above the ceiling amounts — 150 percent of each nontaxable amount — and only where the organisation normally exceeds them.
3. A charity pays its board chair’s consulting firm $80,000 for services worth $80,000, under a contract approved by the disinterested members of the board after reviewing three comparable quotes. Is this an excess benefit transaction?
Answer: No. IRC § 4958(c)(1)(A) requires the economic benefit to exceed the value of the consideration received, and here it does not. A transaction with an insider is not itself a violation; one at an inflated price is. The comparability review and disinterested approval make the conclusion defensible on examination.
4. A small charity with gross receipts of about $12,000 a year has filed nothing since it was formed, believing itself below every threshold. It is now in its fourth year. What is its status?
Answer: Revoked. Receipts that low relieve it of the full return, but IRC § 6033(i) requires the annual electronic notice instead, and IRC § 6033(j)(1)(B) revokes exemption on the due date of the third consecutive missed notice. Reinstatement requires a fresh application under IRC § 6033(j)(2), retroactive only on a showing of reasonable cause for each failure.
5. A charity’s newsletter runs an unsigned editorial opposing a bill before the state legislature. Its total expenditures are $400,000; the editorial cost about $600 to produce. It has not made the IRC § 501(h) election. Is its exemption at risk?
Answer: Almost certainly not, but the analysis is not the one most people run. Advocating the rejection of legislation is attempting to influence legislation under Treas. Reg. § 1.501(c)(3)-1(c)(3)(ii), so this is lobbying, not campaign intervention — a bill is not a candidate. Without the election the question is whether it is a substantial part of activities, and a single $600 editorial against $400,000 of expenditures will not be. The item is measured, not prohibited outright.
Change log
- Initial draft. Sets out the two IRC § 501(c)(3) tests separately — the organizational test read off the articles under Treas. Reg. § 1.501(c)(3)-1(b), including the dedication-of-assets requirement, and the operational test read off activities under Treas. Reg. § 1.501(c)(3)-1(c) — then the inurement and private benefit limits, the substantial part test against the IRC § 501(h) expenditure election, the absolute campaign intervention ban, the IRC § 4958 intermediate sanctions, and automatic revocation under IRC § 6033(j).