501(c)(3) Status & Nonprofit Startup Package

Most start-up nonprofits seek Section 501(c)(3) status to both avoid income tax and facilitate fundraising efforts (e.g., tax-deductible gifts from donors, eligibility for foundation grants).

To be eligible for 501(c)(3) status, an organization must be both organized and operated exclusively for one of the following purposes:

Charitable (generally defined very broadly to mean “providing services beneficial to the public interest”)
Educational
Scientific
Literary
Religious
Testing for public safety
The prevention of cruelty to children or animals
Fostering national or international amateur sports competition

But the IRS does not recognize exempt status simply because you ask for it—you must prove in writing that your organization meets a category of exempt status.

Our Nonprofit Start-Up Package makes the application process easier to navigate, allowing you to concentrate on what you love.

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Need help with governance and compliance? Perkins offers a flat-fee package for your day-to-day legal questions and concerns.

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How Does the Application Process Work?

Nonprofit organizers should understand that the IRS does not grant exempt status to an organization; it will, upon written request, recognize an organization’s exempt status upon a determination that the applicant meets the statutory criteria for a particular category of exempt status.

Organizations typically make such written requests through either Form 1023 or Form 1024.

Upon review and approval of an application—a process which can take anywhere from 2-6 months or more depending on a variety of factors—the IRS will provide a determination letter to the organization. Among other things, the IRS determination letter will list the Internal Revenue Code Section under which the organization is described (e.g., Section 501(c)(3)).

Why Should I Get Help Applying for 501(c)(3) Status?

While thousands of nonprofit organizations apply for 501(c)(3) status, it is not something to take lightly.

The forms are detailed and refer to concepts and terminology with which your average nonprofit board member or employee probably has little, if any, knowledge or expertise.

Further, incomplete or inaccurate responses on the Form 1023 or Form 1024 can result in significant delays (at best) or outright rejection of an application (at worst).

Our Nonprofit Start-Up Package takes care of the details for one flat-fee.

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Avoid delays, rejections and other complications from misfiled paperwork.

Contact Perkins Law and have an experienced nonprofit lawyer protecting you and your organization.