Will my personal tax or financial situation have any bearing on my nonprofit receiving 501(c)(3) status?

No. There is no direct correlation between the organization and the financial, tax or credit status of any officer, director or employee.

Can anyone complete Form 1023?

Technically, anyone can complete Form 1023. From a practical standpoint, it is usually advisable to enlist the help of a professional who specializes in the process, such as The Foundation Group. While the IRS rejects slightly less than 10% of applications filed, nearly half are abandoned by the filer…usually out…

What are the fees to file Form 1023?

The IRS has a two-tiered filing fee structure. Organizations filing the standard Form 1023 pay a $600 filing fee when sending their application to the IRS. Organizations filing Form 1023-EZ pay a reduced $275 filing fee.

Can I file Form 1023 before incorporating my nonprofit?

Yes, but it is not recommended. The IRS will allow unincorporated associations to apply, but these organizations will not have the inherent benefits associated with the corporate structure. In addition, the IRS will still require copies of an organizing document…and will subject the organization to corporate requirements regardless.

Within what time period does Form 1023 need to be filed?

Generally, Form 1023 should be filed within 15 months of the organization’s formation. For practical reasons, many organizations find it better to apply as soon as possible following formation. Extensions beyond 15 months may be possible under a variety of circumstances. After a period exceeding 27 months following corporate formation,…

What is Form 1023-EZ?

Form 1023-EZ is a much more generalized version of the standard Form 1023 long form. Form 1023-EZ is a more streamlined method of filing designed for smaller nonprofits seeking 501(c)(3) status. Because this form is e-filed, the time it usually takes to get IRS approval is greatly decreased. The 1023-EZ…

With whom is Form 1023 filed?

Form 1023 is filed with the Exempt Organizations Division of the Internal Revenue Service in Cincinnati, Ohio, though it is now an electronic submission as of February 2020.

What form is required to get 501(c)(3) status?

To obtain recognition as a 501(c)(3), tax-exempt entity, Form 1023 must be filed with the Internal Revenue Service. Form 1023 is a 29-page, comprehensive look at an organization’s structure and programs. Given the number of additional schedules, attachments and exhibits that may be required in addition to the application itself,…

Do we need to incorporate?

Probably. There are a number of tasks involved with forming a nonprofit organization at the state level. The most important of these is the incorporation process. While it is possible to form a non-corporate, nonprofit organization, (and obtain federal 501(c) tax exemption), the vast majority of organizations choose corporate status.…

Do we need our board of directors in place before we file paperwork?

The short answer is, “yes”. It is not necessary that you have every board position filled before paperwork is filed, but you need an initial board in place. In a nonprofit organization, it is the members of the board of directors who are legally accountable.