In order to apply for Section 501(c)(3) federal tax-exemption, an organization
must first incorporate as a nonprofit corporation. Incorporation happens
at the state level and the requirements for incorporating are different for each
state. Information about incorporating can be attained in most states through the Secretary
of State's office.
Applying for 501(c)(3) Tax-Exemption
Step 1: Get Informed
Tax Information for Charitable Organizations: This IRS webpage offers
several helpful links, including Life Cyle of a Public Charity, Exemption
Requirements, Application for Tax-Exemption, and Filing
Requirements.
IRS FAQs about Tax-Exemption: This page answers frequently asked questions
specifically related to tax-exemption.
Tax-Exempt Status for Your Organization: This extensive document explains the
process of acquiring tax-exemption, requirements for nonprofit
organizations, and a detailed description of nonprofit
classifications.
Step 2: Apply
Applying for 501(c)(3) Tax-Exempt Status: This easy-to-use guide breaks down
the process of applying for tax-exemption and makes it more
manageable.
Instructions for Form 1023: This site includes detailed instructions for
filling out Form 1023, the primary form for acquiring
tax-exemption.
Application for Recognition of Exemption--Form 1023:
The primary form for acquiring tax-exemption.
Instructions for Form SS-4: An employer identification number (EIN) is your
account number with the IRS and is required regardless
of whether the organization has employees. This site includes detailed
instructions for filling out Form SS-4.
Application for Employer Identification Number--Form SS4: This form will provide
you with your "account number" with the
IRS.
Understanding Your EIN: This document helps you understand the various uses of an
employer identification number (EIN).
Step 3: Maintain Your Status
Compliance Guide for 501(c)(3) Tax-Exempt Organizations: This IRS webpage
provides a brief description of the annual filing requirements for
tax-exempt organizations.
Instructions for Form 990 and 990-EZ: This site includes detailed instructions
for filling out Form 990 and Form 990-EZ, the primary annual accountability
form required by the IRS for all tax-exempt charitable
organizations.
Some suggested resources (but not limited to) include the following:
Forming a Nonprofit Organization:
How to Form A Nonprofit Organization by Anthony Mancuso (7th ed. Nolo Press, 2005)
Forming a Foundation:
First Steps in Starting A Foundation by John A. Edie (5th ed. Council on Foundations, 2002)
Nonprofit Management and Board Leadership:
The Source—Twelve Principles of Governance That Power Exceptional Boards (BoardSource, 2005)
Managing the Non-Profit Organization: Principles and Practices by Peter Drucker (Collins, 1992)
Ethics:
"Obedience to the Unenforceable: Ethics and the Nation's Voluntary and Philanthropic Community" (INDEPENDENT SECTOR, 2002)
The Joseph and Edna Josephson Institute of Ethics:
http://www.josephsoninstitute.org/
Nonprofit Organizations and the Sarbanes-Oxley Act:
Guide to Nonprofit Corporate Governance In The Wake Of Sarbanes-Oxley (ABA Coordinating Committee on Nonprofit Governance, 2005)
Download overview:
http://www.abanet.org/buslaw/newsletter/0038/materials/book.pdf
A Desktop Guide For Nonprofit Directors, Officers, and Advisors: Avoiding Trouble While Doing Good by Jack Siegal (Wiley, 2006)
Taxation:
Tax Planning and Compliance for Nonprofit Organizations (Forms, Checklists, Procedures) by Jody Blazek (4th ed. John Wiley & Sons, 2004)
The Tax Law of Unrelated Business for Nonprofit Organizations by Bruce Hopkins (Wiley 2006)
See above resources and web links from the Internal Revenue Service.
Resources found in Nonprofit Resources: A Companion to Nonprofit
Governance, Second Edition by Victor Futter and Lisa A. Runquist (ABA, 2007)
