The IRS 1023 form is an application used by nonprofit organizations seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. This complex document requires detailed information about the organization's purpose, activities, and finances. To streamline the application process and ensure compliance with IRS requirements, consider clicking the button below to fill out the form.
In the landscape of fiscal responsibilities and privileges, the IRS 1023 form stands as a beacon for nonprofit organizations aspiring to secure their tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. This pivotal document outlines a comprehensive array of information, from the intricate details of an organization's structure and governance to the nuances of its financial records and operational activities. It serves not only as an application but as a narrative of an organization's mission, demonstrating its eligibility for tax exemption through evidence of its charitable, religious, educational, or scientific pursuits. The intricacies involved in completing the IRS 1023 form demand a meticulous approach, ensuring that every section is filled with accuracy and clarity to reflect the organization’s compliance with federal requirements. Through this rigorous process, the IRS assesses whether an organization's activities and objectives align with the standards set forth for tax-exempt entities, thereby laying a foundation for their financial and operational accountability. Engaging with this form is a critical step for nonprofit organizations, marking the beginning of their journey toward achieving a recognition that not only offers significant tax advantages but also enhances their credibility and integrity in the eyes of donors, grantmakers, and the broader community.
Form 1023 is filed electronically only on Pay.gov.
Go to www.irs.gov/form1023 for additional filing information.
Form 1023
(Rev. December 2017)
Department of the Treasury
Internal Revenue Service
Application for Recognition of Exemption
Under Section 501(c)(3) of the Internal Revenue Code
▶Do not enter social security numbers on this form as it may be made public. ▶ Go to www.irs.gov/Form1023 for instructions and the latest information.
OMB No. 1545-0056
Note: If exempt status is approved, this application will be open for public inspection.
Use the instructions to complete this application and for a definition of all bold items. For additional help, call IRS Exempt Organizations Customer Account Services toll-free at 1-877-829-5500. Visit our website at www.irs.gov for forms and publications. If the required information and documents are not submitted with payment of the appropriate user fee, the application may be returned to you.
Attach additional sheets to this application if you need more space to answer fully. Put your name and EIN on each sheet and identify each answer by Part and line number. Complete Parts I – XI of Form 1023 and submit only those Schedules (A through H) that apply to you.
Part I
Identification of Applicant
1
Full name of organization (exactly as it appears in your organizing document)
2
c/o Name (if applicable)
3
Mailing address (Number and street) (see instructions)
Room/Suite
4
Employer Identification Number (EIN)
City or town, state or country, and ZIP + 4
5
Month the annual accounting period ends (01 – 12)
6
Primary contact (officer, director, trustee, or authorized representative)
a Name:
b
Phone:
c
Fax: (optional)
7Are you represented by an authorized representative, such as an attorney or accountant? If “Yes,” provide the authorized representative’s name, and the name and address of the authorized representative’s firm. Include a completed Form 2848, Power of Attorney and Declaration of Representative, with your application if you would like us to communicate with your representative.
Yes
No
8Was a person who is not one of your officers, directors, trustees, employees, or an authorized representative listed in line 7, paid, or promised payment, to help plan, manage, or advise you about the structure or activities of your organization, or about your financial or tax matters? If “Yes,” provide the person’s name, the name and address of the person’s firm, the amounts paid or promised to be paid, and describe that person’s role.
9a Organization’s website:
bOrganization’s email: (optional)
10Certain organizations are not required to file an information return (Form 990 or Form 990-EZ). If you are granted tax-exemption, are you claiming to be excused from filing Form 990 or Form 990-EZ? If “Yes,” explain. See the instructions for a description of organizations not required to file Form 990 or Form 990-EZ.
11
Date incorporated if a corporation, or formed, if other than a corporation.
(MM/DD/YYYY)
/
12
Were you formed under the laws of a foreign country?
If “Yes,” state the country.
For Paperwork Reduction Act Notice, see instructions.
Cat. No. 17133K
Form 1023 (Rev. 12-2017)
Name:
EIN:
Page 2
Part II Organizational Structure
You must be a corporation (including a limited liability company), an unincorporated association, or a trust to be tax exempt.
See instructions. DO NOT file this form unless you can check “Yes” on lines 1, 2, 3, or 4.
Are you a corporation? If “Yes,” attach a copy of your articles of incorporation showing certification of
filing with the appropriate state agency. Include copies of any amendments to your articles and be sure
they also show state filing certification.
Are you a limited liability company (LLC)? If “Yes,” attach a copy of your articles of organization showing
certification of filing with the appropriate state agency. Also, if you adopted an operating agreement, attach
a copy. Include copies of any amendments to your articles and be sure they show state filing certification.
Refer to the instructions for circumstances when an LLC should not file its own exemption application.
Are you an unincorporated association? If “Yes,” attach a copy of your articles of association,
constitution, or other similar organizing document that is dated and includes at least two signatures.
Include signed and dated copies of any amendments.
4a
Are you a trust? If “Yes,” attach a signed and dated copy of your trust agreement. Include signed and
dated copies of any amendments.
Have you been funded? If “No,” explain how you are formed without anything of value placed in trust.
Have you adopted bylaws? If “Yes,” attach a current copy showing date of adoption. If “No,” explain
how your officers, directors, or trustees are selected.
Part III Required Provisions in Your Organizing Document
The following questions are designed to ensure that when you file this application, your organizing document contains the required provisions to meet the organizational test under section 501(c)(3). Unless you can check the boxes in both lines 1 and 2, your organizing document does not meet the organizational test. DO NOT file this application until you have amended your organizing document. Submit your original and amended organizing documents (showing state filing certification if you are a corporation or an LLC) with your application.
1Section 501(c)(3) requires that your organizing document state your exempt purpose(s), such as charitable, religious, educational, and/or scientific purposes. Check the box to confirm that your organizing document meets this requirement. Describe specifically where your organizing document meets this requirement, such as a reference to a particular article or section in your organizing document. Refer to the instructions for exempt purpose language.
Location of Purpose Clause (Page, Article, and Paragraph):
2 a Section 501(c)(3) requires that upon dissolution of your organization, your remaining assets must be used exclusively for exempt purposes, such as charitable, religious, educational, and/or scientific purposes. Check the box on line 2a to confirm that your organizing document meets this requirement by express provision for the distribution of assets upon dissolution. If you rely on state law for your dissolution provision, do not check the box on line 2a and go to line 2c.
bIf you checked the box on line 2a, specify the location of your dissolution clause (Page, Article, and Paragraph). Do not complete line 2c if you checked box 2a.
c See the instructions for information about the operation of state law in your particular state. Check this box if you rely on operation of state law for your dissolution provision and indicate the state:
Part IV
Narrative Description of Your Activities
Using an attachment, describe your past, present, and planned activities in a narrative. If you believe that you have already provided some of this information in response to other parts of this application, you may summarize that information here and refer to the specific parts of the application for supporting details. You may also attach representative copies of newsletters, brochures, or similar documents for supporting details to this narrative. Remember that if this application is approved, it will be open for public inspection. Therefore, your narrative description of activities should be thorough and accurate. Refer to the instructions for information that must be included in your description.
Part V Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees, Employees, and Independent Contractors
1a List the names, titles, and mailing addresses of all of your officers, directors, and trustees. For each person listed, state their total annual compensation, or proposed compensation, for all services to the organization, whether as an officer, employee, or other position. Use actual figures, if available. Enter “none” if no compensation is or will be paid. If additional space is needed, attach a separate sheet. Refer to the instructions for information on what to include as compensation.
Name
Title
Mailing address
Compensation amount (annual actual or estimated)
Page 3
Part V
Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees, Employees,
and Independent Contractors (Continued)
bList the names, titles, and mailing addresses of each of your five highest compensated employees who receive or will receive compensation of more than $50,000 per year. Use the actual figure, if available. Refer to the instructions for information on what to include as compensation. Do not include officers, directors, or trustees listed in line 1a.
cList the names, names of businesses, and mailing addresses of your five highest compensated independent contractors that receive or will receive compensation of more than $50,000 per year. Use the actual figure, if available. Refer to the instructions for information on what to include as compensation.
The following “Yes” or “No” questions relate to past, present, or planned relationships, transactions, or agreements with your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed in lines 1a, 1b, and 1c.
2a
Are any of your officers, directors, or trustees related to each other through family or business
relationships? If “Yes,” identify the individuals and explain the relationship.
Do you have a business relationship with any of your officers, directors, or trustees other than through
their position as an officer, director, or trustee? If “Yes,” identify the individuals and describe the business
relationship with each of your officers, directors, or trustees.
Are any of your officers, directors, or trustees related to your highest compensated employees or highest
compensated independent contractors listed on lines 1b or 1c through family or business relationships? If
“Yes,” identify the individuals and explain the relationship.
3 a
For each of your officers, directors, trustees, highest compensated employees, and highest
compensated independent contractors listed on lines 1a, 1b, or 1c, attach a list showing their name,
qualifications, average hours worked, and duties.
Do any of your officers, directors, trustees, highest compensated employees, and highest compensated
independent contractors listed on lines 1a, 1b, or 1c receive compensation from any other organizations,
whether tax exempt or taxable, that are related to you through common control? If “Yes,” identify the
individuals, explain the relationship between you and the other organization, and describe the
compensation arrangement.
4In establishing the compensation for your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed on lines 1a, 1b, and 1c, the following practices are recommended, although they are not required to obtain exemption. Answer “Yes” to all the practices you use.
a
Do you or will the individuals that approve compensation arrangements follow a conflict of interest policy?
Do you or will you approve compensation arrangements in advance of paying compensation?
Do you or will you document in writing the date and terms of approved compensation arrangements?
Page 4
dDo you or will you record in writing the decision made by each individual who decided or voted on compensation arrangements?
eDo you or will you approve compensation arrangements based on information about compensation paid by similarly situated taxable or tax-exempt organizations for similar services, current compensation surveys compiled by independent firms, or actual written offers from similarly situated organizations? Refer to the instructions for Part V, lines 1a, 1b, and 1c, for information on what to include as compensation.
f Do you or will you record in writing both the information on which you relied to base your decision and its
source?
gIf you answered “No” to any item on lines 4a through 4f, describe how you set compensation that is reasonable for your officers, directors, trustees, highest compensated employees, and highest compensated independent contractors listed in Part V, lines 1a, 1b, and 1c.
5a Have you adopted a conflict of interest policy consistent with the sample conflict of interest policy in
Appendix A to the instructions? If “Yes,” provide a copy of the policy and explain how the policy has
been adopted, such as by resolution of your governing board. If “No,” answer lines 5b and 5c.
bWhat procedures will you follow to assure that persons who have a conflict of interest will not have influence over you for setting their own compensation?
cWhat procedures will you follow to assure that persons who have a conflict of interest will not have influence over you regarding business deals with themselves?
Note: A conflict of interest policy is recommended though it is not required to obtain exemption. Hospitals, see Schedule C, Section I, line 14.
6a
Do you or will you compensate any of your officers, directors, trustees, highest compensated employees, and highest
compensated independent contractors listed in lines 1a, 1b, or 1c through non-fixed payments, such as discretionary
bonuses or revenue-based payments? If “Yes,” describe all non-fixed compensation arrangements, including how the
amounts are determined, who is eligible for such arrangements, whether you place a limitation on total compensation,
and how you determine or will determine that you pay no more than reasonable compensation for services. Refer to
the instructions for Part V, lines 1a, 1b, and 1c, for information on what to include as compensation.
Do you or will you compensate any of your employees, other than your officers, directors, trustees, or your
five highest compensated employees who receive or will receive compensation of more than $50,000 per
year, through non-fixed payments, such as discretionary bonuses or revenue-based payments? If “Yes,”
describe all non-fixed compensation arrangements, including how the amounts are or will be determined, who
is or will be eligible for such arrangements, whether you place or will place a limitation on total compensation,
and how you determine or will determine that you pay no more than reasonable compensation for services.
Refer to the instructions for Part V, lines 1a, 1b, and 1c, for information on what to include as compensation.
7a
Do you or will you purchase any goods, services, or assets from any of your officers, directors, trustees, highest
compensated employees, or highest compensated independent contractors listed in lines 1a, 1b, or 1c? If “Yes,”
describe any such purchase that you made or intend to make, from whom you make or will make such purchases, how
the terms are or will be negotiated at arm’s length, and explain how you determine or will determine that you pay no
more than fair market value. Attach copies of any written contracts or other agreements relating to such purchases.
Do you or will you sell any goods, services, or assets to any of your officers, directors, trustees, highest
describe any such sales that you made or intend to make, to whom you make or will make such sales, how the
terms are or will be negotiated at arm’s length, and explain how you determine or will determine you are or will be
paid at least fair market value. Attach copies of any written contracts or other agreements relating to such sales.
8a
Do you or will you have any leases, contracts, loans, or other agreements with your officers, directors,
trustees, highest compensated employees, or highest compensated independent contractors listed in
lines 1a, 1b, or 1c? If “Yes,” provide the information requested in lines 8b through 8f.
bDescribe any written or oral arrangements that you made or intend to make.
cIdentify with whom you have or will have such arrangements.
dExplain how the terms are or will be negotiated at arm’s length.
eExplain how you determine you pay no more than fair market value or you are paid at least fair market value. f Attach copies of any signed leases, contracts, loans, or other agreements relating to such arrangements.
9a Do you or will you have any leases, contracts, loans, or other agreements with any organization in which
any of your officers, directors, or trustees are also officers, directors, or trustees, or in which any individual officer, director, or trustee owns more than a 35% interest? If “Yes,” provide the information requested in lines 9b through 9f.
Page 5
Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees,
Employees, and Independent Contractors (Continued)
bDescribe any written or oral arrangements you made or intend to make.
eExplain how you determine or will determine you pay no more than fair market value or that you are paid at least fair market value.
fAttach a copy of any signed leases, contracts, loans, or other agreements relating to such arrangements.
Part VI
Your Members and Other Individuals and Organizations That Receive Benefits From You
The following “Yes” or “No” questions relate to goods, services, and funds you provide to individuals and organizations as part of your activities. Your answers should pertain to past, present, and planned activities. See instructions.
1 a In carrying out your exempt purposes, do you provide goods, services, or funds to individuals? If “Yes,” describe each program that provides goods, services, or funds to individuals.
bIn carrying out your exempt purposes, do you provide goods, services, or funds to organizations? If “Yes,” describe each program that provides goods, services, or funds to organizations.
Do any of your programs limit the provision of goods, services, or funds to a specific individual or group
of specific individuals? For example, answer “Yes,” if goods, services, or funds are provided only for a
particular individual, your members, individuals who work for a particular employer, or graduates of a
particular school. If “Yes,” explain the limitation and how recipients are selected for each program.
Do any individuals who receive goods, services, or funds through your programs have a family or
business relationship with any officer, director, trustee, or with any of your highest compensated
employees or highest compensated independent contractors listed in Part V, lines 1a, 1b, and 1c? If
“Yes,” explain how these related individuals are eligible for goods, services, or funds.
Part VII
Your History
The following “Yes” or “No” questions relate to your history. See instructions.
Are you a successor to another organization? Answer “Yes,” if you have taken or will take over the
activities of another organization; you took over 25% or more of the fair market value of the net assets of
another organization; or you were established upon the conversion of an organization from for-profit to
nonprofit status. If “Yes,” complete Schedule G.
Are you submitting this application more than 27 months after the end of the month in which you were
legally formed? If “Yes,” complete Schedule E.
Part VIII
Your Specific Activities
The following “Yes” or “No” questions relate to specific activities that you may conduct. Check the appropriate box. Your answers should pertain to past, present, and planned activities. See instructions.
1 Do you support or oppose candidates in political campaigns in any way? If “Yes,” explain.
2 a
Do you attempt to influence legislation? If “Yes,” explain how you attempt to influence legislation and
complete line 2b. If “No,” go to line 3a.
Have you made or are you making an election to have your legislative activities measured by
expenditures by filing Form 5768? If “Yes,” attach a copy of the Form 5768 that was already filed or
attach a completed Form 5768 that you are filing with this application. If “No,” describe whether your
attempts to influence legislation are a substantial part of your activities. Include the time and money
spent on your attempts to influence legislation as compared to your total activities.
3a Do you or will you operate bingo or gaming activities? If “Yes,” describe who conducts them, and list all revenue received or expected to be received and expenses paid or expected to be paid in operating these activities. Revenue and expenses should be provided for the time periods specified in Part IX, Financial Data.
bDo you or will you enter into contracts or other agreements with individuals or organizations to conduct bingo or gaming for you? If “Yes,” describe any written or oral arrangements that you made or intend to make, identify with whom you have or will have such arrangements, explain how the terms are or will be negotiated at arm’s length, and explain how you determine or will determine you pay no more than fair market value or you will be paid at least fair market value. Attach copies or any written contracts or other agreements relating to such arrangements.
cList the states and local jurisdictions, including Indian Reservations, in which you conduct or will conduct gaming or bingo.
Page 6
Your Specific Activities (Continued)
4 a Do
you or will you undertake fundraising? If “Yes,” check all the fundraising programs you do or will
conduct. See instructions.
mail solicitations
phone solicitations
email solicitations
accept donations on your website
personal solicitations
receive donations from another organization’s website
vehicle, boat, plane, or similar donations
government grant solicitations
foundation grant solicitations
Other
Attach a description of each fundraising program.
b Do you or will you have written or oral contracts with any individuals or organizations to raise funds for
you? If “Yes,” describe these activities. Include all revenue and expenses from these activities and state
who conducts them. Revenue and expenses should be provided for the time periods specified in Part IX,
Financial Data. Also, attach a copy of any contracts or agreements.
c Do you or will you engage in fundraising activities for other organizations? If “Yes,” describe these
arrangements. Include a description of the organizations for which you raise funds and attach copies of
all contracts or agreements.
dList all states and local jurisdictions in which you conduct fundraising. For each state or local jurisdiction listed, specify whether you fundraise for your own organization, you fundraise for another organization, or another organization fundraises for you.
e
Do you or will you maintain separate accounts for any contributor under which the contributor has the
right to advise on the use or distribution of funds? Answer “Yes” if the donor may provide advice on the
types of investments, distributions from the types of investments, or the distribution from the donor’s
contribution account. If “Yes,” describe this program, including the type of advice that may be provided
and submit copies of any written materials provided to donors.
Are you affiliated with a governmental unit? If “Yes,” explain.
Do you or will you engage in economic development? If “Yes,” describe your program.
bDescribe in full who benefits from your economic development activities and how the activities promote exempt purposes.
Do or will persons other than your employees or volunteers develop your facilities? If “Yes,” describe
each facility, the role of the developer, and any business or family relationship(s) between the developer
and your officers, directors, or trustees.
Do or will persons other than your employees or volunteers manage your activities or facilities? If “Yes,”
describe each activity and facility, the role of the manager, and any business or family relationship(s)
between the manager and your officers, directors, or trustees.
cIf there is a business or family relationship between any manager or developer and your officers, directors, or trustees, identify the individuals, explain the relationship, describe how contracts are negotiated at arm’s length so that you pay no more than fair market value, and submit a copy of any contracts or other agreements.
8 Do you or will you enter into joint ventures, including partnerships or limited liability companies
treated as partnerships, in which you share profits and losses with partners other than section 501(c)(3)
organizations? If “Yes,” describe the activities of these joint ventures in which you participate.
9a Are you applying for exemption as a childcare organization under section 501(k)? If “Yes,” answer lines 9b through 9d. If “No,” go to line 10.
bDo you provide childcare so that parents or caretakers of children you care for can be gainfully employed (see instructions)? If “No,” explain how you qualify as a childcare organization described in section 501(k).
cOf the children for whom you provide childcare, are 85% or more of them cared for by you to enable their parents or caretakers to be gainfully employed (see instructions)? If “No,” explain how you qualify as a childcare organization described in section 501(k).
dAre your services available to the general public? If “No,” describe the specific group of people for whom your activities are available. Also, see the instructions and explain how you qualify as a childcare organization described in section 501(k).
10 Do you or will you publish, own, or have rights in music, literature, tapes, artworks, choreography,
scientific discoveries, or other intellectual property? If “Yes,” explain. Describe who owns or will own any copyrights, patents, or trademarks, whether fees are or will be charged, how the fees are determined, and how any items are or will be produced, distributed, and marketed.
Page 7
Do you or will you accept contributions of: real property; conservation easements; closely held
securities; intellectual property such as patents, trademarks, and copyrights; works of music or art;
licenses; royalties; automobiles, boats, planes, or other vehicles; or collectibles of any type? If “Yes,”
describe each type of contribution, any conditions imposed by the donor on the contribution, and any
agreements with the donor regarding the contribution.
12 a
Do you or will you operate in a foreign country or countries? If “Yes,” answer lines 12b through 12d. If
“No,” go to line 13a.
Name the foreign countries and regions within the countries in which you operate.
Describe your operations in each country and region in which you operate.
d
Describe how your operations in each country and region further your exempt purposes.
13a
Do you or will you make grants, loans, or other distributions to organization(s)? If “Yes,” answer lines 13b
through 13g. If “No,” go to line 14a.
bDescribe how your grants, loans, or other distributions to organizations further your exempt purposes.
c Do you have written contracts with each of these organizations? If “Yes,” attach a copy of each contract.
dIdentify each recipient organization and any relationship between you and the recipient organization.
eDescribe the records you keep with respect to the grants, loans, or other distributions you make.
fDescribe your selection process, including whether you do any of the following.
(i)
Do you require an application form? If “Yes,” attach a copy of the form.
(ii)
Do you require a grant proposal? If “Yes,” describe whether the grant proposal specifies your
responsibilities and those of the grantee, obligates the grantee to use the grant funds only for the
purposes for which the grant was made, provides for periodic written reports concerning the use of
grant funds, requires a final written report and an accounting of how grant funds were used, and
acknowledges your authority to withhold and/or recover grant funds in case such funds are, or appear
to be, misused.
gDescribe your procedures for oversight of distributions that assure you the resources are used to further your exempt purposes, including whether you require periodic and final reports on the use of resources.
14 a Do you or will you make grants, loans, or other distributions to foreign organizations? If “Yes,” answer lines 14b through 14f. If “No,” go to line 15.
bProvide the name of each foreign organization, the country and regions within a country in which each foreign organization operates, and describe any relationship you have with each foreign organization.
cDoes any foreign organization listed in line 14b accept contributions earmarked for a specific country or specific organization? If “Yes,” list all earmarked organizations or countries.
dDo your contributors know that you have ultimate authority to use contributions made to you at your discretion for purposes consistent with your exempt purposes? If “Yes,” describe how you relay this information to contributors.
eDo you or will you make pre-grant inquiries about the recipient organization? If “Yes,” describe these inquiries, including whether you inquire about the recipient’s financial status, its tax-exempt status under the Internal Revenue Code, its ability to accomplish the purpose for which the resources are provided, and other relevant information.
fDo you or will you use any additional procedures to ensure that your distributions to foreign organizations are used in furtherance of your exempt purposes? If “Yes,” describe these procedures, including site visits by your employees or compliance checks by impartial experts, to verify that grant funds are being used appropriately.
Page 8
15
Do you have a close connection with any organizations? If “Yes,” explain.
16
Are you applying for exemption as a cooperative hospital service organization under section 501(e)? If
“Yes,” explain.
17
Are you applying for exemption as a cooperative service organization of operating educational
organizations under section 501(f)? If “Yes,” explain.
18
Are you applying for exemption as a charitable risk pool under section 501(n)? If “Yes,” explain.
19
Do you or will you operate a school? If “Yes,” complete Schedule B. Answer “Yes,” whether you operate
a school as your main function or as a secondary activity.
20
Is your main function to provide hospital or medical care? If “Yes,” complete Schedule C.
21
Do you or will you provide low-income housing or housing for the elderly or handicapped? If “Yes,”
complete Schedule F.
22
Do you or will you provide scholarships, fellowships, educational loans, or other educational grants to
individuals, including grants for travel, study, or other similar purposes? If “Yes,” complete
Schedule H.
Note: Private foundations may use Schedule H to request advance approval of individual grant procedures.
Page 9
Part IX
Financial Data
For purposes of this schedule, years in existence refer to completed tax years.
1.If in existence less than 5 years, complete the statement for each year in existence and provide projections of your likely revenues and expenses based on a reasonable and good faith estimate of your future finances for a total of:
a.Three years of financial information if you have not completed one tax year, or
b.Four years of financial information if you have completed one tax year. See instructions.
2.If in existence 5 or more years, complete the schedule for the most recent 5 tax years. You will need to provide a separate statement that includes information about the most recent 5 tax years because the data table in Part IX has not been updated to provide for a 5th year. See instructions.
A.Statement of Revenues and Expenses
Revenues
Expenses
Type of revenue or expense
Current tax year
3 prior tax years or 2 succeeding tax years
(a) From
(b) From
(c) From
(d) From
(e) Provide Total for
To
(a) through (d)
1Gifts, grants, and contributions received (do not include unusual grants)
2Membership fees received
3Gross investment income
4Net unrelated business income
5Taxes levied for your benefit
6Value of services or facilities furnished by a governmental unit without charge (not including the value of services generally furnished to the public without charge)
7Any revenue not otherwise listed above or in lines 9–12 below (attach an itemized list)
8Total of lines 1 through 7
9Gross receipts from admissions, merchandise sold or services performed, or furnishing of facilities in any activity that is related to your exempt purposes (attach itemized list)
10Total of lines 8 and 9
11Net gain or loss on sale of capital assets (attach schedule and see instructions)
12Unusual grants
13Total Revenue
Add lines 10 through 12
14 Fundraising expenses
15Contributions, gifts, grants, and similar amounts paid out (attach an itemized list)
16Disbursements to or for the benefit of members (attach an itemized list)
17Compensation of officers, directors, and trustees
18 Other salaries and wages
19 Interest expense
20 Occupancy (rent, utilities, etc.)
21 Depreciation and depletion
22 Professional fees
23Any expense not otherwise classified, such as program services (attach itemized list)
24Total Expenses
Add lines 14 through 23
Page 10
Financial Data (Continued)
B. Balance Sheet (for your most recently completed tax year)
Year End:
Assets
(Whole dollars)
Cash
Accounts receivable, net
Inventories
Bonds and notes receivable (attach an itemized list)
Corporate stocks (attach an itemized list)
Loans receivable (attach an itemized list)
7
Other investments (attach an itemized list)
8
Depreciable and depletable assets (attach an itemized list)
9
Land
10
Other assets (attach an itemized list)
Total Assets (add lines 1 through 10)
Liabilities
Accounts payable
13
Contributions, gifts, grants, etc. payable
14
Mortgages and notes payable (attach an itemized list)
Other liabilities (attach an itemized list)
Total Liabilities (add lines 12 through 15)
Fund Balances or Net Assets
Total fund balances or net assets
Total Liabilities and Fund Balances or Net Assets (add lines 16 and 17)
Have there been any substantial changes in your assets or liabilities since the end of the period
shown above? If “Yes,” explain.
Part X Public Charity Status
Part X is designed to classify you as an organization that is either a private foundation or a public charity. Public charity status is a more favorable tax status than private foundation status. If you are a private foundation, Part X is designed to further determine whether you are a private operating foundation. See instructions.
1 a
Are you a private foundation? If “Yes,” go to line 1b. If “No,” go to line 5 and proceed as instructed. If you
are unsure, see the instructions.
As a private foundation, section 508(e) requires special provisions in your organizing document in
addition to those that apply to all organizations described in section 501(c)(3). Check the box to confirm
that your organizing document meets this requirement, whether by express provision or by reliance on
operation of state law. Attach a statement that describes specifically where your organizing document
meets this requirement, such as a reference to a particular article or section in your organizing document
or by operation of state law. See the instructions, including Appendix B, for information about the special
provisions that need to be contained in your organizing document. Go to line 2.
Are you a private operating foundation? To be a private operating foundation you must engage directly in
the active conduct of charitable, religious, educational, and similar activities, as opposed to indirectly
carrying out these activities by providing grants to individuals or other organizations. If “Yes,” go to line 3.
If “No,” go to the signature section of Part XI.
Have you existed for one or more years? If “Yes,” attach financial information showing that you are a
private operating foundation; go to the signature section of Part XI. If “No,” continue to line 4.
Have you attached either (1) an affidavit or opinion of counsel, (including a written affidavit or opinion
from a certified public accountant or accounting firm with expertise regarding this tax law matter), that
sets forth facts concerning your operations and support to demonstrate that you are likely to satisfy the
requirements to be classified as a private operating foundation; or (2) a statement describing your
proposed operations as a private operating foundation?
5If you answered “No” to line 1a, indicate the type of public charity status you are requesting by checking one of the choices below. You may check only one box.
The organization is not a private foundation because it is:
a 509(a)(1) and 170(b)(1)(A)(i)—a church or a convention or association of churches. Complete and attach Schedule A. b 509(a)(1) and 170(b)(1)(A)(ii)—a school. Complete and attach Schedule B.
c509(a)(1) and 170(b)(1)(A)(iii)—a hospital, a cooperative hospital service organization, or a medical research organization operated in conjunction with a hospital. Complete and attach Schedule C.
d 509(a)(3)—an organization supporting either one or more organizations described in line 5a through c, f, h, or i or a publicly supported section 501(c)(4), (5), or (6) organization. Complete and attach Schedule D.
After you've decided to take the big step of starting a nonprofit, one of your first tasks will be to apply for tax-exempt status with the Internal Revenue Service (IRS) using Form 1023. This form can seem daunting at first glance, but with careful preparation and attention to detail, you can successfully navigate through it. The process involves providing detailed information about your organization's history, activities, and finances. Once submitted, the IRS will review your application to determine if your organization meets the criteria for tax-exempt status. Here's how to fill out the Form 1023 to get your nonprofit up and running.
Once you've mailed your Form 1023, the waiting game begins. The IRS may take a few months to process your application, during which they might reach out with questions or requests for additional information. Remember, patience and communication are key. Successfully obtaining tax-exempt status is a critical step for your nonprofit, opening the door for donations, grants, and other funding opportunities that are essential for your mission.
What is the IRS 1023 form?
The IRS 1023 form is an application used by organizations seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. This form is detailed and requires comprehensive information about the organization's structure, activities, and finances.
Who needs to file the IRS 1023 form?
Organizations aiming for tax-exempt status under 501(c)(3), including charities, educational institutions, religious organizations, and other non-profits, must file the IRS 1023 form. This form helps the IRS determine if the organization meets the tax-exempt criteria.
Are there different types of IRS 1023 forms?
Yes, there are two types: the standard Form 1023 and the Form 1023-EZ. The latter is a simpler, streamlined version designed for smaller organizations that meet specific eligibility criteria.
What are the eligibility requirements for filing Form 1023-EZ?
Organizations must meet several eligibility criteria to file Form 1023-EZ, such as having gross receipts of $50,000 or less and assets totaling $250,000 or less. There are also restrictions based on the nature and activities of the organization.
What information is required on the IRS 1023 form?
Applicants must provide detailed information, including the organization's legal name, EIN (Employer Identification Number), history, structure, narrative description of activities, bylaws, and financial data. The form also requires details on compensation, fundraising activities, and compliance with other IRS regulations.
How long does it take to process the IRS 1023 form?
The processing time varies. For Form 1023-EZ, decisions can come within weeks, while the standard Form 1023 may take several months. The IRS's current processing times can be found on their official website.
Is there a filing fee for the IRS 1023 form?
Yes, there is a filing fee, which varies depending on the form type. The standard Form 1023 has a higher fee compared to the streamlined Form 1023-EZ. The exact fees are subject to change, so it's important to check the IRS's website for the most current information.
Can I file the IRS 1023 form electronically?
Yes, the IRS encourages organizations to file the Form 1023 electronically, although paper filing is still an option. Form 1023-EZ must be filed electronically through the IRS website.
What happens if my IRS 1023 application is denied?
If your application is denied, the IRS will provide the reasons for the denial. Organizations have the opportunity to address the issues and submit additional information or appeal the decision within a specific timeframe.
Where can I find help with completing the IRS 1023 form?
Assistance with completing the IRS 1023 form can be found through various resources, including the instructions provided by the IRS, tax professionals, lawyers specializing in non-profit law, and some non-profit support organizations that offer guidance and workshops.
Filling out the IRS 1023 form, which is used by nonprofit organizations seeking tax-exempt status, is a complex process fraught with potential pitfalls. One common mistake is the failure to provide detailed narratives of the organization's activities. Applicants often overlook the necessity of clearly explaining how their activities will further their exempt purposes, instead providing only vague descriptions. The IRS requires a comprehensive account of your operations to determine eligibility for tax-exempt status.
Another error lies in the financial data presentation. Many applicants either submit incomplete financial information or project unrealistic future budgets. It is crucial to provide complete financial records for the most recent fiscal year, along with projections for the next two years. These projections should be realistic, reflecting both anticipated revenue and expenses. This financial transparency is key to demonstrating the organization's capability to sustain its operations and fulfill its mission over time.
A further mistake is not correctly classifying the organization's type. The IRS recognizes various categories of 501(c)(3) organizations, each with specific qualifications and activities. Misidentifying your organization can lead to unnecessary delays or even denial of your application. It's important to thoroughly review the IRS guidelines to ensure accurate classification.
Misunderstanding the necessity of adopting conflict-of-interest policies is also a problem. The IRS expects tax-exempt organizations to have policies in place that minimize conflicts of interest, particularly in decision-making processes. Failure to adopt and present such policies within the application can be seen as a lack of proper governance, adversely affecting the application's success.
Applicants also frequently underestimate the importance of attaching all required schedules and attachments. Each part of the form, and any supplemental documentation, serves a purpose in illustrating the organization's eligibility for tax-exempt status. Overlooking or omitting required attachments can result in processing delays or a request for more information, stalling the approval process.
Another common oversight is failing to sign and date the form. This might seem trivial, but an unsigned or undated form is considered incomplete by the IRS and will be returned to the applicant. Such an oversight can significantly delay the application process.
Not applying for state-specific exemptions simultaneously is also a typical misstep. While the 1023 form pertains to federal tax-exempt status, most states have their own exemptions for which an organization may qualify. Ignoring these can lead to missed opportunities for state-level tax benefits.
Some organizations proceed with the filing without having the appropriate organizing documents in place or failing to ensure these documents meet the specific requirements set forth by the IRS. For instance, the organizing document must limit the organization's purposes to one or more exempt purposes and not explicitly empower the organization to engage in activities that do not further its exempt purposes.
Lastly, a significant mistake is the assumption that once tax-exempt status is granted, it does not require maintenance. Organizations must continue to comply with annual filing requirements and maintain operations within the scope of their stated exempt purposes. Failing to do so can result in the revocation of tax-exempt status.
When applying for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, organizations use IRS Form 1023. However, this critical step often involves more than just completing and submitting one form. To effectively navigate the application process, a variety of additional documents and forms are frequently required. Understanding these supplementary materials can significantly streamline the process, ensuring that organizations provide all necessary information to the IRS for a successful tax exemption application.
Together, these documents form a comprehensive package that supports the IRS Form 1023 application. Each serves a specific purpose, from establishing legal incorporation to demonstrating compliance and operational governance, which are fundamental to obtaining and maintaining tax-exempt status. For organizations embarking on this journey, meticulous preparation and thorough documentation are the keys to success. By ensuring these complementary documents are in order, applicants can confidently navigate the application process toward achieving their goal of tax-exempt status.
The IRS 1023 form, required for organizations seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code, shares similarities with the IRS 1023-EZ form. The 1023-EZ form is a streamlined version of the 1023, designed for smaller organizations expecting to have less than $50,000 in annual gross receipts and assets totaling $250,000 or less. Both forms serve the same purpose: to allow organizations to apply for recognition of tax-exempt status. However, the 1023-EZ offers a simplified process, with fewer details required and a shorter processing time.
Another document similar to the IRS 1023 form is the IRS Form 990, which is the annual informational return that tax-exempt organizations must file. This form provides the IRS and the public with financial information about the nonprofit's operations, ensuring accountability and transparency. While the 1023 form is about obtaining tax-exempt status, the Form 990 is about maintaining that status by reporting annual financial data, including revenue, expenses, and compensation of key employees. Both forms are integral to the regulatory framework governing tax-exempt organizations.
The IRS Form 1024 is also akin to the 1023 form but is used by organizations seeking tax-exempt status under sections other than 501(c)(3). This includes various types of organizations such as social clubs (section 501(c)(7)), labor unions (section 501(c)(5)), and trade associations (section 501(c)(6)). While the 1023 form is specifically for charities, religious organizations, and educational institutions, the 1024 form caters to a broader range of organizations. Both forms require detailed information about the organization's structure, governance, and financial projections.
The state-level tax exemption application is another document that bears resemblance to the IRS 1023 form. Many states require tax-exempt organizations to file a separate application to be exempt from state income, sales, and property taxes. These applications vary by state but typically require information similar to what is provided in the 1023 form, such as the organization's purpose, activities, and financial data. The process of obtaining state-level tax exemption complements the federal exemption process, ensuring that organizations are recognized as tax-exempt at both the federal and state levels.
Filling out the IRS Form 1023 can seem daunting, but with careful attention to detail and a clear understanding of what's expected, you can navigate the process smoothly. To help, here is a list of do's and don'ts:
By following these dos and don'ts, you'll be better equipped to complete the IRS Form 1023 correctly, increasing the likelihood of your organization gaining tax-exempt status without unnecessary delays.
Filing for tax-exempt status in the United States involves submitting IRS Form 1023, and it's surrounded by a variety of misconceptions. Understanding these misconceptions is crucial for nonprofits aiming for tax-exempt status. Below are five common misunderstandings, clarified to assist in navigating this process more effectively.
The IRS 1023 form is essential for organizations seeking tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. Understanding the form's requirements and correctly completing it can significantly impact an organization's ability to obtain and maintain its tax-exempt status. Here are four key takeaways for organizations tackling this form:
Successfully completing and submitting the IRS 1023 form is a critical step for organizations seeking 501(c)(3) status. While the process can be lengthy and requires attention to detail, the benefits of obtaining tax-exempt status are significant. Following these key takeaways can help streamline the process, setting your organization up for success.
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