Web Business Ownership supports business owners and entrepreneurs of all kinds. For those looking for information on how to start a non-profit organization and for understanding of the IRS processes for filing as a Tax-Exempt Organization, we’ve assembled a collection of resources to help you.
The Foundation Group® is the nation’s most trusted provider of professional startup and consulting services to 501c3 organizations. With a boastful 100% approval rate for applications submitted to the IRS, and a money-back guarantee to their clients, they help ease the process of applying for your 501c3 status.
Frequently Asked Questions: (Get more answers on www.501c3.com)
What does being a 501c3, tax-exempt organization mean?
The term “tax-exempt,” when used in reference to nonprofit organizations, generally refers to the net profits (proceeds over and above expenses) of an organization being exempt from federal and/or state income tax. While a nonprofit organization can be established by incorporating, the entity is not automatically tax-exempt upon creation with the state. Tax-exemption can usually be achieved only through applying for and receiving Internal Revenue Service (IRS) approval.
What form is required for 501c3 status?
To apply for IRS 501(c)(3) recognition, IRS Form 1023 must be completed and filed.
Click here for the IRS Link to Download Form 1023
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, more than one-third are abandoned by the filer…usually out of frustration or inability to answer the IRS follow-up questions. Out of approximately 80,000 applications filed annually, nearly half never make it through the process.
How long does it take for the IRS to approve 501c3 status?
Typically, IRS 501(c)(3) approval takes between 2 and 12 months, inclusive of likely written follow-up questions. Sometimes it takes a little less; sometimes a little more. Expedited review can be requested if a new organization is being formed to provide immediate disaster relief or if a promised grant is both 1) substantial relative to the organization’s budget and 2) the grant has a specifically-defined expiration date. There is no guarantee the IRS will grant expedited review requests.
Get more answers on www.501c3.com
Internal Revenue Service (IRS) Resources:
Web Site: www.irs.gov
Forms and Instructions: Click Here
IRS Publications (Reference Documents): Click Here
Get Your EIN Number(Free): Click Here
Contact the IRS: Click Here
Grant Information and Federal Resources: