Achieve 501c3 Status
501c(3) status is the IRS name for tax-exempt status for nonprofit organizations. Having 501c(3) status is a necessary requirement for obtaining certain grants and government assistance for charitable work. It is not a simple process to apply to the IRS for 501c(3) status, but the following steps will give you an idea of the IRS's procedures and requirements for filing this application.
Instructions
1. Apply with the IRS for an employer identification number (EIN) using IRS Form SS-4. You must have an EIN even if your organization does not have any employees.
2. Fill out IRS Form 1023. This is a 27--page document that the IRS estimates will take 4 hours to learn about and 8 hours to fill out.
3. Attach to your application the following supporting documentation about your organization: a written description of your organization's planned, current, and past activities; a list of your organization's sources of funding, both current and proposed; and a description of your organization's current and planned fundraising program.
4. Attach the required financial information about your organization. If your organization is new, attach your budget for the current year and proposed budget for the next 2 years. For an established organization, attach your budget for the current year as well as the past 3 years.
5. Attach a confirmed copy of your organization's Certificate of Incorporation, and if you have adopted by-laws, those must be included as well.
6. Have an authorized official (officer, trustee or director) of your organization sign Form 1023.
7. Fill out Form 8718 and attach the appropriate filing fee. The current (as of 2009) fee for an organization with gross earnings (or projected gross earnings) of less than $10,000 is $300. If gross earnings (or projected gross earnings) are more than $10,000, the fee is $750.
