In most states, no. While a handful of states have a simple, one- or two-page form that must be prepared, California is the only state that requires a separate application process rivaling the one required by the IRS. In California,…
Probably not. Private foundations may still be subject to taxes on investment earnings and undistributed minimum grant allocations. All 501(c)(3) organizations may be subject to taxes on "unrelated business income." 501(c)(3) organizations that have employees are subject to federal and…
No. Your EIN is the only number issued to your organization by the federal government. When your nonprofit's 501(c)(3) status is approved by the IRS, you will receive a written notice, known as a letter of determination.
A denial by the IRS of 501(c)(3) status, known as an adverse determination, is a very difficult situation. An adverse determination can be appealed, but it is an enormous undertaking absolutely requiring professional representation. Alternatively, the organization may choose to apply…
Yes, but don't expect much success with that. Most foundations, government agencies and other potential sources of funding will require an organization to possess an approved IRS 501(c)(3) determination letter.
Generally, yes. IRS 501(c)(3) recognition is (usually) effective retroactively to the earlier of 1) the organization’s legal formation or 2) the commencement of its programs. This means that the organization’s activities are retroactively tax-exempt and donations are retroactively tax-deductible to…
Form 1023 does not need to be notorized, but it must be signed, under penalty of perjury, by an officer or director.
Both Form 1023 and 1023-EZ must be submitted online via the pay.gov IRS portal.
No. There is no direct correlation between the organization and the financial, tax or credit status of any officer, director or employee.
In order for the IRS to make a determination on a standard Form 1023 application, specific questions must be answered relative to the organization’s legal structure, its governing board and potential conflicts of interest. More importantly, pages of detailed questions…