A2Z Filings

Tips To Get Started on the 501c (3) Application Process

a person preparing for the 501c3 application process

Getting your tax-exempt 501(c)(3) status is a critical step in establishing your nonprofit organization. It is a major marketing unique selling point, as your donors can deduct the contributions they make to your charity from their taxes. However, the 501(c)(3) requirements are quite complex, and you need someone who specializes in setting up non for profit 501c3.

You need to do certain tasks before starting your nonprofit organization, like hiring your team, preparing the 501(c)(3) application, filing for tax-exempt status, creating a business plan, and writing persuasive grant proposals. As mentioned, the 501(c)(3) application process can be overwhelming, so when preparing the 501c3 application process, here are a few steps you need to take care of.

Sort Your Articles of Incorporation

Before you start on your application process, make sure to sort out your articles of incorporation. These essential documents highlight your intention of establishing your charity as a legal entity that can operate as a business, receive donations, and get tax-exempt status.

You’d need to submit your articles of incorporation to the local state office. However, make sure to do your research to find out the appropriate office to submit your documents. You can either establish your organization as a nonprofit corporation, charitable trust, or an unincorporated association. All have different requirements, so consult a specialist to understand the structure that best suits your mission.

Get Your EIN And Fill the IRS Form 1023

After submitting your articles of incorporation, you’ll need to sort out your employer identification number. You need your EIN to continue with your main application process. Ensure that you fulfill the two notable requirements before you get your EIN. Your charitable organization needs to be incorporated in a US state or territory, and you, as the owner, need to have SSN or other taxpayer identification. EIN process is straightforward, and you’ll receive it immediately.

The IRS Form 1023 is crucial for your 501c3 application process. You need to fulfill various requirements along with your Form 1023. Make sure to consult with an expert. They’ll help you fulfill all the requirements and ensure that you don’t experience any hiccups along the way.

a notebook with a pen and laptop.

Determine The Type of Your Nonprofit

You need to determine the type of nonprofit organization as it will impact the type of forms you’ll be required to fill to get your recognition as a tax-exempt entity. The two main types of organizations that are listed on the application are public charities and private organizations.

All organizations are considered private foundations unless they are churches, schools, research centers, or hospitals. Speak to your tax experts and determine the type of entity you want to build. It is important to start on the right foot so that you have a seamless path ahead!

If you’re looking for a reliable expert who can help you establish your organization and provide the best nonprofit formation services. Our extensive experience and client-centric approach have enabled us to become a reliable tax experts for nonprofit organizations.

We can help you file 990 tax returns for nonprofit, Nonprofit 501(c)(3) Corporation Document Preparation, 501c3 filing service, and professional bookkeeping services. Anyone looking for professional services can contact us on 561-212-1192 or email us at info@a2zfilings.com. More information can be found on our website.