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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 Long Does it Take to Get 501c3 Tax Exempt
Understandably, this is one question that we hear over and over again from startup nonprofit organizations looking for 501c3 tax exemption from the IRS. Just yesterday I heard from a woman who told me that an online startup “service” had told her it was possible to have her 501c3 [...]
How to Start a Nonprofit: Internal Processes and Systems
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[/custom_frame_left] This is the conclusion of a five-part series on how to start a nonprofit organization. Keep in mind that the sequence in which you complete these tasks may vary, but each is important. This final post will explore the steps to creating your Internal Processes and Systems.
Internal Processes / Systems
1. Set up operating procedures: Creating a set of operating procedures should make your day-to-day operations run more smoothly, not the opposite. If you are new to this sort of thing, sit down with another nonprofit director who has been at this for awhile. There’s no need to learn all of your lessons the hard way.
How to Start a NonProfit: 501c3 Application & State Registrations
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[/custom_frame_right] This is the fourth part in a five-part series on how to start a nonprofit organization. Keep in mind that the sequence in which you complete these tasks may vary, but each is important. This post will explore the steps involved in applying for 501c3 tax exemption and state and local permits.
501c3 Tax Exemption
1. Prepare IRS Form 1023