Form 1023-Ez Streamlined Application For Recognition Of: Fill & Download for Free

You file for 501(c)(3) exemption with the IRS. The application is IRS Form 1023. As Ian Rothmans mention there are application fees: $850 for a regular application and $400 for the Form-1023 EZ. The approval process can vary widely, from a few weeks to months. While I’ve heard of nonprofits who’ve stated the process took 9 or more months, for many nonprofits the process is probably closer to 3–4 months for the regular form, and can be less than a month for the 1023-EZ.That said, you can’t just apply for the 1023-EZ, because its easy and the process more streamlined. You organization needs to meet some minimum requirements, which can be fairly restrictive depending on what you are hoping to accomplish. Here are the top priorities:Anticipate less than $50,000 in annual gross receipts each year for the first 3 years, andHave had less than $50,000 in annual gross receipts for all 3 prior years (if applicable), andHave total assets valued at under $250,000There is a quick worksheet, where you can see if you qualify for 1023-EZ process. Now the nice thing about the 1023-EZ process is that it can allow small nonprofits with no employees or 1/2 time employee to start-up quickly and give you 3 years to establish yourself and grow. But if your organization’s plan is to have a full-time staff member within a year or to get a multi-year grant, as quickly as possible, then you wouldn’t qualify for the easy form.It’s also worth mentioning, that is the federal tax-exempt status. Many states also require nonprofits to apply for exemption of state taxes separately. So don’t forget to investigate those process as well.As for the steps, the first step regardless of which way you decide to proceed, well after deciding your mission and goals, is getting an Employer Identification Number (EIN), This will become the ‘social security’ number for your organization and should be used on all your application forms. The EIN can be provided within a day, depending on if you do online versus mail processing.

You want to incorporate in your state as a nonprofit or a nonstock corporation, get an EIN number from the IRS. (LINK) Apply for an Employer Identification Number EIN Online Then fill out the form 1023EZ online (LINK) About Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. Then Apply with your state for tax exemption. You will need some local licensing but you should start off as a foster family organization with licensing that can accept donations. The tax exemption will allow you to exempt your house and property from taxes for the good deed.

First step is to determine the organization's mission, activities, and future revenue streams.Gather a group of people who would be willing to serve on the board of directors. They must be trustworthy, committed to the mission, and be willing to help guide raise funding for the organization, and meet regularly to discuss the organization's progress.At the first meeting of the board of directors, write by-laws to define your organization's structure. Write articles of incorporation. Make sure both conform to your state laws. File both documents with your state along with the correct filing fee, if there is one. Your board of directors should also write a strategic plan, describing the long-range vision for the nonprofit, how it will bring in revenue, how it will spend its revenue, how it will grow, and how it will determine whether it is successful.After your state registers your incorporation, you will want to apply for tax identification number with the Internal Revenue Service. Complete Form SS-4 and sent to the Internal Revenue Service. Page on irs.govAfter the IRS sends the organization's tax identification number, complete Form 1023-EZ in order to apply for nonprofit status. Form 1023-EZ, Streamlined Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code The IRS may take a year or so to respond, so be patient.Assuming the IRS approves your nonprofit status, you may have to apply with the state to solicit charitable contributions from state residents. About 41 states require this. Check with your state's secretary of state office to find out whether you need to register, and how often you need to renew. If you plan on asking for contributions from residents of other states too, you may need to register with those states as well.Remember to file annual reports with the IRS https://www.Internal Revenue Service/uac/About-Form-990EZ and renew your charitable status with the states each year.Good luck!