Discuss the operational test for establishing a 501c3 organization

Discuss the operational test for establishing a 501c3 organization. Describe what it is, where in the law do you find it, and what does it mean. What if an organization prepares its bylaws leaving open for the possibility that the organization will conduct some part of its activities in a non-exempt purposeful manner? What if the bylaws explicitly state that one part of the organization will be for a non-exempt purpose? What would be the results – will the IRS grant tax-exempt status. What might the courts say?  

While answering these question in essay format and it doesn’t have to be too long. You would need to back up the reasoning with Internal Revenue Code while answering each questions.

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