Many organizations are not aware that they can register their non-profit organization (NPO) as a 501C3. These entities may have been considering forming as an LLC or other business entity, but were unaware that they could register as a tax exempt NPO and be eligible for various benefits, such as being able to apply for grants, donations, and in some cases, the ability to purchase goods at wholesale prices. This post will briefly describe the 501(c)(3) application process.
To register as a non-profit, you will need to complete your 501C3 application with the IRS which includes completing Form 1023 or 1024 along with a few additional forms, depending on the type of NPO you wish to create. The process is similar regardless if you want to establish a religious institution or another type of nonprofit entity.
- Fill out Form 1023 or 1024 for certain non-profits
- File Form 1023 with the appropriate regional office of the IRS in which your organization will be located
- Attach all necessary supporting documentation such as articles of incorporation, bylaws, and proof of charitable status
Articles of Incorporation
The articles of incorporation are typically filled out by an attorney who understands all the nuances that go into this type of document. You need to file the articles of incorporation if you want to establish a nonprofit that can conduct business, get a tax exempt status and receive donations.
EIN and IRS Form 1023
A lot of people may not know about what an EIN is, but it is a tax number that you need to apply for in order to start your business. It’s best if you are ready with this information before starting the IRS Form 1023 because some parts of it require the number.
The wait for approval can be long for your 501(c)(3). This delay could happen for any number of reasons, including an audit in progress or an error on your application that needs to be fixed.
Whatever the reason, it’s important to know how you’ll handle this when you submit your application.