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501c3 Articles

How Much Does it Cost to File for 501c3 Tax Exemption

How much does it cost to file for 501c3 tax exemption? This depends on which IRS form you use to file, and you have two distinct options: IRS Form 1023-EZ or IRS Form 1023. Let’s take a look at both options in more detail: Option One: IRS Form 1023-EZ – If you are NOT a church, a school, a hospital, a foreign organization, or a medical research organization/hospital, and if your total projected revenue (gross receipts) is expected to be less than $50,000 per year, then there’s a good chance you will qualify for 501c3 tax exemption using IRS Form 1023-EZ. IRS Form 1023-EZ is a shorter and less expensive option for startup nonprofit organizations, and the IRS User Fee is only $275 (as of March, 2018). The IRS estimates less than 20 hours of total preparation time for completing this application, as opposed to 100+ hours for completing the traditional IRS Form 1023. Also, the turn-around [...]

2024-11-13T13:28:00-05:00
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5 Essential Things To Include In Your Nonprofit’s Bylaws

The process for filing your 501c3 application can be delayed if you make mistakes. Many people try to complete the entire process themselves without any help from an experienced nonprofit expert. Not only can this delay the process, but it can even get your nonprofit denied. A nonprofit’s bylaws are an extremely important, legally binding document that basically governs how the nonprofit will function. The language used in certain sections of your bylaws can also be the difference in being approved or denied your 501c3 status. The IRS is very particular about it. Here are some essential components to include in your bylaws to ensure an easy process. The Basic Information It’s probably obvious, especially to you, but you should still include all of the basic information about your nonprofit in your bylaws. This information includes, but is not necessarily limited to: Name of the organization. Location of your organization (if you have more than [...]

2022-05-02T12:32:23-05:00
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What Do I Need to File for 501c3 Status

Are you looking to apply for tax exemption status from the Internal Revenue Service? Then you’re going to need to know which forms need to be filled out and how to prepare for the federal filing requirements for nonprofits. In order to file for 501c3 status you need to establish your nonprofit corporation on both the Federal and State level. Here's the process and what you need when filing for 501(c)(3) status. What are are the exemption requirements for a 501c3 Organization While we’ve covered the steps to start a nonprofit, today we’re going to look more at the specific requirements from the IRS in establishing a nonprofit organization. The steps to establish your corporation as a nonprofit include: Choose Directors for your Nonprofit - In Texas, you must have at least 3 members on your board of directors. These directors may be a natural person of at least 18 years or older, a corporation, or [...]

2022-04-11T19:41:54-05:00
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What Can A 501c3 Organization NOT Do?

A nonprofit, 501c3 organization can do a lot of good for a lot of people. They are incredible ways to give back to your community or those that are less fortunate. A 501c3 also comes with a lot of benefits when it comes to tax exemptions. However, like all things, even 501c3 have limitations on what all they can do. In fact, breaking the rules that govern 501c3 organizations can even have your status revoked. While it’s important to know what you can do with any type of 501c3 organization, it’s also very important to know what you can’t do as well to remain in compliance. This is why Nonprofit Elite of Keller, Texas provides more than just applying for your 501c3 status. We also specialize in consulting and compliance for your organization so you never have to worry about making a mistake that could jeopardize your organization. 501c3 Nonprofits Can’t Support Political Campaigns Many [...]

2022-04-01T05:40:22-05:00
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What Are The 3 Types of 501c3 Nonprofits?

Starting and maintaining a successful nonprofit organization is not an easy task. There are many steps needed to ensure legitimate 501c3 status with the IRS. The accomplishment of starting your own organization, though, is a fantastic feeling. If you’re in the beginning phases of your nonprofit startup, you probably have several questions including, “What type of nonprofit am I?” A “nonprofit organization” is a broad and very generalized term for an organization that does not distribute profits to individuals or shareholders, but instead reinvests funds to accomplish its mission. Nonprofits also work to advance a mission that promotes or provides for the common good. While there are technically eight separate categories of nonprofit organizations, there are three main categories set forth by the IRS: Public Charities Private Foundations Private Operating Foundations While all three are considered nonprofit organizations and will often obtain the same 501c3 tax exempt status, each of these categories is distinctive. [...]

2022-04-01T05:40:22-05:00
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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. 501c3 Filing Fee

2022-07-08T22:16:39-05:00
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A Nonprofit Fighting Sex Trafficking in Texas

In 2014, Angie Goeke and Alicia Maroney attended a presentation about the prevalence of child sex trafficking in their city of Katy, Texas, and decided to take action. After careful planning and research, they contacted Nonprofit Elite and formed a 501c3 organization called Not In Our City. Not In Our City (NIOC) works in the Houston area and utilizes a three-pronged approach to advance their mission: First, they inform their community about the frequency of child sex trafficking through public presentations and events aimed at revealing the secret world of trafficking. Second, NIOC invests in educational curriculum that exposes the dangers of sex trafficking to both students and teachers in Texas schools.  Third, NIOC is committed to helping the community defend itself through partnership programs with like-minded organizations and the promotion of legislative action to fight trafficking and protect children at any cost. In just a short time NIOC has already presented to 800+ youth across [...]

2022-03-04T11:50:56-05:00
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New $275 Form 1023-EZ User Fee (July 1, 2016)

Beginning July 1, 2016, the IRS has changed the User Fee for IRS Form 1023-EZ from $400 to $275 for all applicants.  This new fee applies only to those Form 1023-EZ applications prepared and submitted after July 1, 2016. In addition to lowering the application fee, we also expect the IRS to add several new safeguards to the Form 1023-EZ application process to continue discouraging non-qualified applications.  These new safeguards could include revisions to the actual Form 1023-EZ and increased follow-up correspondence with the IRS to verify appropriate formation documents and tax exempt provisions contained within those formation documents (Articles of Incorporation and Bylaws).  Overall, we expect the IRS to be more involved in checking in with applicants during the Form 1023-EZ review process.  To date, we have noticed more instances where the IRS requests copies of the applying organization's formation documents, narrative description of activities, and three years of projected financial budgets. If you are beginning the 501c3 application process yourself, or have questions about which form (and user [...]

2022-03-04T07:05:56-05:00
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IRS Form 1023-EZ Help and Services

Searching for IRS Form 1023-EZ help, cost or filing services?  Nonprofit Elite can help! We are excited to offer a more affordable and faster 501c3 application process to small and mid-size nonprofit organizations seeking to obtain tax exempt status from the IRS. The newly-released 501c3 application is called IRS Form 1023-EZ and is appropriate for most nonprofit organizations with projected annual receipts of $50,000 or less and total assets of $250,000 or less (excluding churches, schools, hospitals, medical research organizations, and a few other types).  The IRS User Fee for this new Form 1023-EZ is $400 for all applicants, and the IRS is promising a significantly faster review process and response rate than the traditional 6-12 months. If your new nonprofit organization is eligible to file this new IRS Form 1023-EZ then it is almost certainly in your best interest to do so.  Otherwise, filing the traditional IRS Form 1023 could cost you significantly more time and money - up to $1500 [...]

2022-03-04T07:06:51-05:00
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Congratuatlions to American Trooper – New 501c3!

We want to congratulate Nonprofit Elite client Shanessa Coburn and American Trooper on their approval as a new 501c3 tax exempt organization!  To learn more about American Trooper and their good work supporting US soldiers and veterans, please visit their website at http://www.americantrooper.us.

2022-03-04T07:07:44-05:00
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