Nonprofit Elite’s reputation has been earned…
By helping organizations such as…
And Our Results Speak For Themselves
Apply for 501c3 Status – Form a 501c3 Organization
We’re Your Starting Point!
Nonprofit Elite provides expert counsel and outsourcing services to startup nonprofit organizations, including preparation of your formation documents, help through the 501c3 application process, and a full range of consulting and compliance solutions. No matter where you are in the startup process, we can help.
Nonprofit Elite provided us with consultation, formation documents, and preparation of our 501c3 application – a first class experience from start to finish. Our goal was to do things the right way and that’s exactly what happened. Ben and his team were helpful at every step. We had our IRS approval in three months.”
—Malcolm K. Farmer
President and General Manager
NBA’s G League Texas Legends
Understanding the 501c3 Application Process
Articles of Incorporation
Step one is to incorporate in your state as a nonprofit or public benefit corporation by filing Articles of Incorporation with your Department/ Secretary of State. While there are other ways to form a 501c3 organization, such as creating a trust or non-incorporated organization, state incorporation is by far the most common method. Incorporation costs vary from state to state but typical fees range from $25-$125. The length of time to incorporate ranges from a few hours to several months, depending on the state and your filing method. Most important is that you must include the IRS-required purpose and dissolution language in your formation documents, even though most state forms do NOT mention these requirements.
Tax ID Number and Bylaws
Your next step is to obtain a Tax Identification Number from the IRS, also called an EIN or FEIN, and then create organizational Bylaws. Bylaws are a required governing document that provide rules and management guidelines for your organization and your board of directors. A custom set of Bylaws takes a few days to prepare, and we can obtain your Tax ID Number online from the IRS website in about 20 minutes. There are no state or federal filing fees associated with obtaining your EIN or creating Bylaws, but keep in mind both of these items are carefully reviewed when you file your IRS Form 1023 to apply to the IRS for federal tax-exempt status.
IRS Form 1023
The last step in the 501c3 application process is to file either IRS Form 1023 or IRS Form 1023-EZ with the IRS. This is by far the most complex and time-consuming part of the process; even the IRS estimates 20–100+ hours of preparation time for a first time applicant. We strongly encourage you to contact Nonprofit Elite to determine which form to file, and there is a required User Fee of either $275 or $600 depending on the form. Once completed, you will submit your IRS Form 1023 application to the IRS for review along with signed copies of your formation documents, Bylaws, Tax ID Number, Conflict of Interest Policy, User Fee, and all additional schedules and notes.
Recent Nonprofit 501c3 Related Articles
How Much Does it Cost to File for 501c3 Tax Exemption
How much does it cost to file for 501c3 tax exemption? That depends on which IRS form you use to file, and you have two options: IRS Form 1023-EZ or IRS Form 1023. Let’s take a look at both options in more detail: Option One: IRS Form [...]
501c3 Filing Fee
Nonprofit organizations filing IRS Form 1023 – Application for Recognition of Exemption must include a Form 1023 User Fee payment as part of their application for either $400 or $850, made payable by check to the United States Treasury.
The Form 1023 filing fee amount is determined by your organization’s annual revenue over the next four years, and the IRS uses $10,000 per year as its benchmark. For example, if your organization’s projected annual revenue averages $10,000 or more during the next four years, then your application fee is $850. If your organization’s projected annual revenue averages less than $10,000 during the next four years, then your application fee is $400.
7 Common Mistakes To Avoid When Forming A Nonprofit
Forming your own 501c3 nonprofit organization is a lot of work, and if not done correctly could cause you some big headaches or even legal issues. Just like with any project, you shouldn’t go at it alone. Even nonprofits need an internal team to help with all of the [...]
Choosing Your Local Nonprofit Consultant
As a professional in the nonprofit field, you have a plethora of responsibilities to fulfill. From networking with supporters to other professionals to provide services, you’ve got your plate full. It can consume a lot of your time, leaving you very little leftover to strategize about next steps. That’s [...]