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Has your nonprofit organization filed for exempt status with the IRS?

 

Form 1023, Application for Recognition of Exemption

under Section 501(c)(3) of the Internal Revenue Code

 

To be recognized by the IRS as an exempt organization, prospective 501(c)(3) nonprofits must file this application.  It is an involved application that requires numerous attachments, including the Articles of Incorporation (if incorporated) and Bylaws, financial information including budgets (if the organization is new), information about the officers and directors, and a complete description of past, present, and planned exempt activities.  The IRS requires certain clauses to be included in the state approved Articles of Incorporation or the Form 1023 will be returned.

 

Churches do not need to file Form 1023, though it is advantageous to do so for several reasons.  The IRS will issue a determination letter of exempt status that can be used to "prove" tax exempt status to the occasional donor who inquires.  In addition, the name of the church will be listed as an Exempt Organization in Publication 78.  The exempt list is also accessible online by those who choose to search for it.

 

The CPA's at Schnaufer & Walker, P.C., Certified Public Accountants, have personally filed hundreds of 1023's for charitable, religious, and educational organizations since 1997 with a 100% approval rate.  We will see your 1023 through to completion!

 

Form 8734, Support Schedule for Advance Ruling Period - within 90 days following completion of a nonprofit's 5th year, if the nonprofit requested an "advance ruling" when it filed its Form 1023, it must file Form 8734 to prove its status as a public charity.  If the organization fails to file Form 8734, the IRS will change its exempt status to a private foundation, which thereafter requires Form 990-PF to be filed.