Form 1023 Checklist - Internal Revenue Service: Fill & Download for Free

That depends. Do you just want to fundraise for a good cause? If so, you don’t need to create a new entity. Or do you want to create a whole new 501c3? And Why?You can do fundraising for a good cause the easy way, the hard way, or in between:The Easiest Way: You don’t necessarily need any “paperwork” and don't need to create any special new "entity" at all. You can always fundraise on behalf of other non-profits without ever creating a new entity. If you use one of the many great fundraising websites already out there (e.g., CrowdRise, FirstGiving, etc.), you can track the extent of your donations (so you know how much you personally raised), but the money still goes directly to the chosen charity. Since the donation goes directly to the chosen charity, the donor can get a tax receipt directly from them. That’s the way we operated our charity the first year or two.In Between: You can form a non-profit corporate entity, but not file with the IRS for tax exempt status. There are services that will form a non-profit company for you. I recommend MyCorporation.com: Incorporate Or Form an LLC, File a Trademark or Copyright, and more - Start Your Business for $69+ State Fees.. This will cost anywhere from about $100-300. Make sure you form a non-profit entity, not a for-profit company. This way, you will have a "real company", and you can have a "real title" like CEO, President, etc. But your profits will not be tax exempt. That sounds like a problem, but it's really not. If you plan to donate virtually all the money you raise, then you will have zero profit. You will have a lot of "revenue" but then the money that comes in will go right back out, leaving zero "profit". So from a tax perspective, the tax status is not important. You will have to file tax returns, however, if you bring in over a certain amount of revenue. But when just starting out, you are unlikely to reach these revenue thresholds. Pros: Pretty easy, get to have a "title" like "CEO" or "President" of a real company. Cons: Has some cost involved, may have to file tax returns eventually if your revenues/collections are high, not a full 501(c)(3), which may be required by some corporate donors (see below).The Hard Way: If you wish to get 501c(3) tax status from the IRS, then, in addition to the in between way above, after you form your new entity, you have to file IRS form 1023, to request to become a 501c3. This may be important once you start to seek larger corporate donors because some potential corporate donors will only donate if you have 501(c)(3) status and they have seen your certificate to prove it. Again, there are services that will do the IRS filings for you for a fee, but this gets even more expensive - it may cost several hundred dollars. You can do it yourself, but it takes a bit of work, and there's still a small filing fee directly with the IRS. And there's no guarantee the IRS will grant you the status - you have to apply and wait for a decision. It’s a difficult process for big entities, but assuming you plan to raise only small amounts (less than $50,000 per year), and meet the other qualifications, you can file a streamlined IRS form 1023EZ. You can find the relevant IRS forms and instructions here: Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code To see if you qualify for the EZ version, look at this checklist/worksheet posted by the IRS here: http://www.irs.gov/pub/irs-pdf/i1023ez.pdf Pros: Allows you to get donations from corporate donors, gives non-profit status to your income. Cons: High cost, labor intensive to set up, long lag time for application process.See more here: https://www.linkedin.com/pulse/20141025125412-1102979-how-you-or-your-kids-can-create-a-new-charity-event-in-3-easy-steps