Jump to Section
A 501c3 application is the process for requesting tax-exempt status in accordance with the specified section of the Internal Revenue Code in the US. The status is commonly granted to the non profit organization working for social good.
What is a 501c3 Application?
A 501c3 application is a legal document that nonprofit organizations submit to the Internal Revenue Service to qualify for tax exemptions. Even though an approved application allows nonprofit organizations to have tax exemptions federally, a further state-level process must also be completed to maintain 501c3 status. These processes are called the Charitable Solicitations Registration and the State Corporate Tax Exemption.
Required Documents for a 501c3 Application
The 501c3 application process can be lengthy and time consuming. Applicants use a special form called a Form 1023-Series application to submit for 501c3 status. Organizations must file the Form 1023-Series application within 27 months of the end of the first month that the organization was formed.
This Form 1023-Series application is 28 pages long and requires additional documentation to be submitted; this documentation often makes 501c3 applications 100 pages or longer.
Here are a few examples of documentation that the IRS requires to be submitted along with their Form 1023-Series application:
- Detailed financial information (past and present)
- Past, present, and future proposed activity information
- Language and currency details
- Organizing document
- Rules of operation and any applicable corporate bylaws
- Power of Attorney or Declaration of Representative (if applicable)
- Supplemental information (if response fields in applications are not long enough to record a full response
- Organization name and Employee Identification Number (on each page of supplemental information provided)
- Employment tax or benefit plan returns
- Optional expediting request
Learn more about the 501c3 application process.
Steps to Create a 501c3 Application
Creating a 501c3 application can be a time-consuming process, but it does not have to be a difficult one. The key to completing the application process is to stay organized to ensure all information is readily available. The Internal Revenue Service (IRS) provides specific instructions on how to use this information to complete an application.
Here is an easy step-by-step process that you can use to complete the 501c3 application for your organization:
-
Obtain Status with the Internal Revenue Service.
In order to be approved for 501c3 status, an organization must be formally registered with the IRS under one of the following:
- Trust
- Corporation
- Association
-
Establish Exempt Purpose.
The IRS requires each organization to state a specific exempt purpose that would qualify them for 501c3 status. Here are the acceptable exempt purposes for this portion of the application:
- Charitable
- Religious
- Educational
- Scientific
- Literary
- Testing for public safety
- Fostering national or international amateur sports competition
- Preventing cruelty to children or animals
- Complete 501c3 Application. Complete your 501c3 application, Form 1023-Series application for review by the IRS. Make sure to complete each field in its entirety; if additional room is needed to answer a question, continue your answer on an attached sheet labeled “supplemental information.” It’s also important to make sure you attach required additional documentation, such as your organization’s organizing documents, financial statements, and any applicable power of attorney certifications as well.
-
Review and Edit Application.
In order for a 501c3 application to be approved, it must be completed accurately. Here are a few questions to answer when reviewing and editing your application to ensure it is complete and all applicable documentation is attached:
- Is the organization’s Employee Identification Number (EIN) present in Part I, on page one of the application and on every page of supplemental information provided?
- Are exact copies of the organization’s organizing documents attached?
- Are all applicable financial statements attached?
- If applicable, is information about the organization’s power of attorney attached?
- Complete and Submit Form 1023-Series Application. Completing the Form-1023 Series application is the most important step towards achieving 501c3 status with the IRS. Applicants should complete and submit their signed and dated application along with the applicable user fee, which is $275 for organizations. The user fee must be submitted via check or money order in U.S. dollars and made payable to the United States Treasury.
Get more information about how to create a 501c3 application and the Form 1023-Series application here.
501c3 Organization Requirements
In order for an organization to be granted 501c3 status, the Internal Revenue Service (IRS) requires them to meet a few major requirements. The IRS vigorously reviews all application information, so it is vital that organization information and documentation is as accurate as possible. This ensures that only eligible nonprofit organizations can benefit from the federal tax exemption.
Here is a complete list of 501c3 organization requirements:
- Must be a trust, corporation, or association formally registered with the IRS
- Must have an acceptable exempt purpose such as charitable, religious, or educational
- Must request an Employee Identification Number or EIN (even if there are no employees)
- Must submit a complete Form 1023-Series application with supporting documents and user fee to the IRS
- Must apply within 27 months of the last day of the month following when the organization was formed
- Must make approved application, all supporting documents, and previous three annual information returns available for public review without a charge.
For a more in-depth look at 501c3 organization requirements, check out this article.
Foreign Organizations
501c3 tax exemptions can be applied for by foreign organizations in the same way that domestic organizations apply. These exemptions only apply to income earned within the United States.
Canadian organizations that have a Notification of Registration from the Canada Revenue Agency are automatically granted 501c3 status in the United States and are not required to submit a 501c3 application for tax exemptions.
Learn more about the 501c3 application process.
How Long Does It Take for a 501c3 to be Approved?
Since the Internal Revenue Service (IRS) reviews all 501c3 applications in-depth before approval, the processing time varies widely. The amount of time it will take for a 501c3 application to be approved is affected by the size and tenure of an organization, the length of the Form 1023-Series application and even the volume of nonprofit applications in process at the IRS at any given time. In general, organizations can expect to wait anywhere from 3-12 months for approval.
How to Expedite 501c3 Approval
While the IRS’s standard timeline for processing your 501c3 application can’t be rushed, there are a few things you can do to secure 501c3 status for your organization as quickly as possible:
- Ensure Application Accuracy. If any details of your application are inaccurate or any necessary forms aren’t provided, the IRS will request additional information, which will slow down the approval process.
- Look for Internal Errors. If your application is delayed due to internal errors within the IRS, they will usually expedite your approval for free.
- Cite any Special Circumstances. If tax exempt status is needed for a special circumstance such as disaster relief, the IRS may agree to expedite approval of the 501c3 application.
Find out more about how long it takes for a 501c3 application to be approved here.
Benefits of a 501c3 Application
Here are the benefits that an organization gets when tax exempted title is granted:
- Tax-Exempt Status: Nonprofits can get federal income tax exemption by obtaining exemption status. This implies that the organization does not have to devote much of its money to paying taxes, freeing up additional resources for its humanitarian objective. This tax-free status also applies to various state and local taxes, increasing the financial resources available for your organization's activities.
- Mission Alignment: Beyond the financial and legal benefits, the status affirms your organization's devotion to its charity objective. It assures that organization operations are primarily directed towards benefitting the public and furthering your declared mission rather than serving private interests or creating personal profits.
- Grant Access: The opportunity to apply for and receive grants from various sources is a key benefit of exempt status. Foundations, government agencies, and private organizations frequently limit their contributions to tax-exempt charities. This opens up a world of possible financial assistance for your organization, which may help it develop and carry out its objective.
- Public Trust and Credibility: After acquiring status, nonprofit organizations frequently enjoy a higher level of public trust and credibility. The organization has satisfied specified IRS standards and acts for the public good rather than private gain. As a result, supporters or donors may be more inclined to contribute to the cause, and volunteers may be more eager to become involved.
- Legal Protections: Nonprofit organizations, particularly those with tax-exempt status, benefit from legal safeguards that can assist in shielding board members' and officials' personal assets. This limited liability protection assures that people engaged with the organization are not personally accountable for the organization's debts or legal responsibilities, which can give comfort while engaging in charity activities.
- Access to Reduced Postal Rates: The United States Postal Service gives nonprofit organizations reduced postal rates, making mailings, newsletters, and fundraising materials more affordable. This may dramatically cut the cost of your organization's communication and outreach operations, allowing it to reach a larger audience.
- Ability to Apply for Public and Private Grants: Many government agencies and private foundations need organizations to have 501(c)(3) registration to apply for grants. Obtaining this classification allows NGOs to access a broader range of funding sources and possibilities, which may be critical for organizations trying to grow their programmes and effect.
- Enhanced Fundraising Opportunities: Some states and municipalities only allow tax-exempted organizations to raise funds. These benefits include the opportunity to conduct charity gaming events such as bingo or raffles, which can generate additional cash for your organization.
Final Thoughts on 501c3 Applications
For nonprofit organizations looking to increase their reputation, draw in financing, and carry out their benevolent objective, filing for tax-exempt status in the Internal Revenue Code is important. Gaining tax-exempt status might be a game-changer for nonprofit organizations, allowing them to advance their aims, help their communities, and gain stakeholder support. These organizations can be effective in their attempts to serve the public good if they follow the application procedure correctly and maintain their tax-exempt status. In essence, tax-exempt status encourages nonprofit organizations to develop and prosper. It allows them to serve as lights of hope, blazing the way for countless people and leaving a lasting legacy. One act of kindness at a time, the advantages of this position construct a deep legacy of love, compassion, and transformational effect that leaves an imprint on the world.
If you want free pricing proposals from vetted lawyers that are 60% less than typical law firms, click here to get started. By comparing multiple proposals for free, you can save the time and stress of finding a quality lawyer for your business needs.
Meet some of our 501c3 Application Lawyers
Sara S.
With over ten years of intellectual property experience, I’m happy to work on your contractual matter. I am very diligent and enjoy meeting tight deadlines. Drafting memoranda, business transactional documents, termination notices, cease and desist letters, licenses and letter agreements are all in my wheelhouse! Working in a variety of fields, from construction to pharmaceutical, I enjoy resolving any disputes that come across my desk.
Samuel R.
My career interests are to practice Transactional Corporate Law, including Business Start Up, and Mergers and Acquisitions, as well as Real Estate Law, Estate Planning Law, Tax, and Intellectual Property Law. I am currently licensed in Arizona, Pennsylvania and Utah, after having moved to Phoenix from Philadelphia in September 2019. I currently serve as General Counsel for a bioengineering company. I handle everything from their Mergers & Acquisitions, Private Placement Memorandums, and Corporate Structures to Intellectual Property Assignments, to Employment Law and Beach of Contract settlements. Responsibilities include writing and executing agreements, drafting court pleadings, court appearances, mergers and acquisitions, transactional documents, managing expert specialized legal counsel, legal research and anticipating unique legal issues that could impact the Company. Conducted an acquisition of an entire line of intellectual property from a competitor. In regards to other clients, I am primarily focused on transactional law for clients in a variety of industries including, but not limited to, real estate investment, property management, and e-commerce. Work is primarily centered around entity formation and corporate structure, corporate governance agreements, PPMs, opportunity zone tax incentives, and all kinds of business to business agreements. I have also recently gained experience with Estate Planning law, drafting numerous Estate Planning documents for people such as Wills, Powers of Attorney, Healthcare Directives, and Trusts. I was selected to the 2024 Super Lawyers Southwest Rising Stars list. Each year no more than 2.5% of the attorneys in Arizona and New Mexico are selected to the Rising Stars. I am looking to further gain legal experience in these fields of law as well as expand my legal experience assisting business start ups, mergers and acquisitions and also trademark registration and licensing.
Curt B.
Curt Brown has experience advising clients on a variety of franchising, business litigation, transactional, and securities law matters. Mr. Brown's accolades include: - Super Lawyers Rising Star - California Lawyer of the Year by The Daily Journal - Pro Bono Attorney of the Year the USC Public Interest Law Fund Curt started his legal career in the Los Angeles office of the prestigious firm of Irell & Manella LLP, where his practice focused on a wide variety of complex civil litigation matters, including securities litigation, antitrust, trademark, bankruptcy, and class action defense. Mr. Brown also has experience advising mergers and acquisitions and international companies concerning cyber liability and class action defense. He is admitted in California, Florida, D.C., Washington, Illinois, Colorado, and Michigan.
Angela H.
Angela Hayden is an accomplished and driven attorney with a diverse professional background that sets her apart. Having served as a former Assistant Public Defender in Allegheny County, Angela acquired invaluable expertise in navigating the complexities of the criminal justice system. Her trial experience spans a wide range of cases, from minor retail theft to complex criminal homicide, demonstrating her ability to deliver successful outcomes for her clients. Prior to her focus on criminal defense, Angela honed her skills in public policy and political consulting through her work with both the Pennsylvania and United States House of Representatives. This experience provided her with a deep understanding of the intricacies of public policy and the ability to offer strategic guidance to clients. Angela's career also took her to a civil defense firm, where she traveled across the country, defending clients in litigation. This experience enhanced her ability to handle complex civil matters and strengthened her litigation skills. In addition to her expertise in criminal defense and civil litigation, Angela has demonstrated her proficiency in employment law, providing guidance and consultation to small businesses and non-profit organizations. Her keen insight into employment law matters ensures that businesses operate within legal boundaries while fostering a positive work environment. Furthermore, Angela is a licensed realtor, well-versed in residential real estate transactions. This additional knowledge allows her to offer comprehensive legal support to clients involved in real estate matters, ensuring their interests are protected throughout the process. Angela holds a degree from Hampton University and obtained her Juris Doctor from the University of Dayton School of Law. She is pursuing a Master of Business Administration. She is licensed to practice law in Pennsylvania and the District of Columbia, demonstrating her commitment to providing exceptional legal services in multiple jurisdictions. With her extensive experience and passion for achieving favorable outcomes for her clients, Angela Hayden is a dedicated advocate ready to guide you through your legal journey.
May 22, 2023
Bethany T.
I am an experienced family law attorney licensed in California and Florida with over 13 years of experience.
May 21, 2023
Maria M.
I have worked for over 20 years in the areas of family law, business formation, contracts and real estate law. In the area of family law, I represent clients in all areas of family law including child custody, child support, spousal support and marital property division as well as preparing prenuptial and separation agreements. I am experienced in real estate law, including commercial and residential leases, preparing various types of real estate related contracts. I am also experienced in business formation among other business law matters. I currently work in the area of grant management with the Small Business Administration.
May 22, 2023
Don K.
Oliver Keene is not your typical attorney. With a personal touch and a passion for helping others, he goes above and beyond to provide exceptional legal services. Born and raised in the heart of the Appalachian coalfields, Oliver understands the value of hard work and perseverance. His small-town upbringing instilled in him a deep sense of community and a commitment to making a difference in people's lives. Oliver's journey in the legal field began with a Bachelor's degree in Criminal Justice from Bluefield University. He went on to earn his Juris Doctorate from Lincoln Memorial University - Duncan School of Law, where he excelled in his studies and developed a strong foundation in law. Throughout his career, Oliver has gained invaluable experience working as a public defender, an attorney advisor for the Small Business Administration, and in various legal roles. With a focus on estate planning and business law, Oliver is dedicated to helping individuals and families protect their assets, plan for the future, and navigate the complexities of the legal system. His approachable demeanor, attention to detail, and genuine care for his clients set him apart. Oliver's clients can trust that he will go the extra mile to ensure their legal needs are met with the utmost professionalism and personalized service. Outside of his legal practice, Oliver enjoys spending time with his wife and daughter, exploring the great outdoors, and indulging in his passion for hunting and fishing. His commitment to serving military families is evident in his offering of discounted services as a token of gratitude for their sacrifices. When you choose Oliver Keene as your attorney, you're not just hiring a legal professional - you're gaining a trusted advisor and a compassionate advocate. With Oliver by your side, you can have confidence that your legal matters will be handled with the highest level of expertise and care.
Find the best lawyer for your project
Browse Lawyers NowAccounting
501c3 Application
Illinois
Why do attorneys keep turning me down for my case?
I keep looking for an attorney for my discrimination case. This is what I tell them: "I'm a black woman working for a governmental agency who is being treated different than my white and/or male co-workers. I'm paid the same salary for my category, but, my treatment is worse.They are changes rules based on race, also.". The attorneys turn me down or tell me it's not discrimination.
Talin H.
I'm sorry that's happening to you and I can imagine that that's frustrating. There are unfortunately a lot of instances in which we legitimately experience discrimination, but it wouldn't meet the high bar of the LEGAL definition in court. I suggest seeking out a black, or better yet, black female attorney who might be more empathetic to your lived experience.
Business lawyers by top cities
- Austin Business Lawyers
- Boston Business Lawyers
- Chicago Business Lawyers
- Dallas Business Lawyers
- Denver Business Lawyers
- Houston Business Lawyers
- Los Angeles Business Lawyers
- New York Business Lawyers
- Phoenix Business Lawyers
- San Diego Business Lawyers
- Tampa Business Lawyers
501c3 Application lawyers by city
- Austin 501c3 Application Lawyers
- Boston 501c3 Application Lawyers
- Chicago 501c3 Application Lawyers
- Dallas 501c3 Application Lawyers
- Denver 501c3 Application Lawyers
- Houston 501c3 Application Lawyers
- Los Angeles 501c3 Application Lawyers
- New York 501c3 Application Lawyers
- Phoenix 501c3 Application Lawyers
- San Diego 501c3 Application Lawyers
- Tampa 501c3 Application Lawyers
ContractsCounsel User
501c3
Location: Massachusetts
Turnaround: Over a week
Service: Prepare & File
Doc Type: 501(c)(3) application
Number of Bids: 4
Bid Range: $1,200 - $3,000
ContractsCounsel User
501C3 for a local church
Location: Maryland
Turnaround: A week
Service: Drafting
Doc Type: 501(c)(3) application
Number of Bids: 3
Bid Range: $1 - $2,000
related contracts
- Advisory Board Member Contract
- Annual Report
- Articles of Association
- Articles of Incorporation
- Articles of Organization
- B Corp
- Board Minutes
- Board Resolution
- Business Entity
- Business Operating Agreement
other helpful articles
- How much does it cost to draft a contract?
- Do Contract Lawyers Use Templates?
- How do Contract Lawyers charge?
- Business Contract Lawyers: How Can They Help?
- What to look for when hiring a lawyer