A 501(c)(3) may not run certain use cases

The requirementstatement

A brand holding 501(c)(3) status must not register the Agents & Franchises, Carrier Exempt, Proxy, Social or Sweepstake use cases.

Severityseverity: BlockingBLOCKINGBreaking this rule gets the submission rejected. There is no partial credit.
When it bitesphase: Gates approvalapprovalGet this wrong and the brand or campaign is refused at registration.
What is checkedobject: brand.tax_exempt_status + campaign.use_case
Where it liveslayer: BrandBRAND
How Ekas settles itdetectability: DeterministicDETERMINISTICExternal recordEXTERNAL_DATA; Settled in code from the values you submitted. No model involved, no judgement call, same answer every time. The fact that settles it lives in a register we cannot query, such as the IRS file, a postal database, or another provider’s tenant. Reported as a warning with the evidence to check, not as a pass.
What the fix involvesfailureClass: Fix the fieldRETRY_FIELD; A better value in the form fixes it. Ekas can rewrite it and re-check.
Who requires itauthorities: TCR
When it appliesapplicabilityText: Applies when the brand is a non-profit.

Why this rule existsrationale

These five use cases are commercial mechanics — reselling reach, sweepstakes promotion, proxy messaging — and a charitable exemption is granted on the basis that the organisation is not doing them. The block protects the exemption as much as the channel: a charity that runs a sweepstakes campaign on its exempt status has a problem considerably larger than a rejected registration.

How to fix itremediation

Choose a use case the exemption permits — CHARITY for fundraising and appeals, ACCOUNT_NOTIFICATION for supporter records, CUSTOMER_CARE for enquiries. If the programme really is a sweepstake or an agent network, it belongs on a separate commercial brand rather than on the exempt entity. Done when the use case is one a 501(c)(3) may hold.

A compliant exampleexample

tax_exempt_status: 501(c)(3) · use_case: CHARITY — not SWEEPSTAKE

Check this yourselfattestation

Ekas flags this from what you submit, but the fact that settles it sits somewhere only you can reach.

Is the 501(c)(3) status on this brand real and current, and is the use case one an exempt organisation may hold?

1Confirm the exemption in the IRS Tax-Exempt Organization Search.
2Check the use case is not Agents & Franchises, Carrier Exempt, Proxy, Social or Sweepstake — those five are commercial mechanics an exemption is granted on the basis of not doing.

What wrong looks like: A charity runs a sweepstake campaign on its exempt status. The rejected registration is the smallest of its problems.

Notesnotes

Decidable from the two declared values, which is why it carries a check even though the catalog grades it EXTERNAL_DATA — the external half is confirming the 501(c)(3) status itself, which is BRD-053. The neighbouring rule XBC-002 asks the opposite question: whether a brand claiming the CHARITY use case actually holds the status.

Rules you will hit next

Other brand rules at the same severity. A registration is judged as a whole, not rule by rule.

BRD-001A legal company name is required for every entity but a sole proprietorBlockingBLOCKING BRD-002Legal name must match the IRS record for the EINBlockingBLOCKING BRD-003Legal name must carry its exact entity suffix as filedBlockingBLOCKING BRD-008Legal name must not carry an appended personal name or roleBlockingBLOCKING BRD-009The legal name field takes the legal name, not the trading nameBlockingBLOCKING BRD-011A legal business name may back only one brand across the whole registryBlockingBLOCKING

All brand rules

BRD-060 is one of 196 brand rules in the 915-rule 10DLC registry. Free to cite under CC BY 4.0.