How to Apply for a 501(c)3
A 501(c)3 organization is commonly called a charitable organization. Charitable organizations are tax exempt under the tax laws of the United States. This status requires the organization to follow strict rules. The organization must be organized for a charitable purpose and cannot conduct unfettered lobbying. In return for following these strict rules, the organization is not taxed.
Other People Are Reading
Things You'll Need
- Form 1023, available at the IRS website
- Form SS-4, available at the IRS website
Instructions
-
Setting Up
-
1
Organize as a corporation, trust or unincorporated association and operate that organization exclusively for one or more of the exempt purposes. Exempt purposes include those which are religious, educational, charitable, scientific or literary.
-
2
File form SS-4 with the IRS. This form will allow the IRS to give the organization an employer identification number (EIN). An EIN is required regardless of whether the organization has employees. This form may be downloaded at the IRS website.
-
-
3
Download, print and complete form 1023. This form is the Application for Recognition of Exemption Under 501(c)3 of the Internal Revenue Code. The form comes complete with instructions similar to those found in the income tax return forms. This form must be complete and filed with the IRS. It can be downloaded at the IRS website.
-
4
File form 1023 within 15 months of organization. The time limit to file form 1023 is 15 months after organizing as a 501(c)3 entity.
-
5
Consult a tax specialist for further information. Tax specialists are experts in this field and will be able to answer any questions that go beyond the basics of applying for this status.
-
1
Tips & Warnings
This article was written for educational purposes only. It does not give legal advice. Readers with tax issues should speak with an attorney or a tax specialist. Do not rely on this article for legal advice.
