Tax-exempt status with the IRS is exemption from paying income taxes on the revenue received through your charitable organization. In other words, your organization would not have to file or pay taxes for the grants, donations, sponsorships, and other revenue received for charitable purposes. You will also have the ability to give donors a receipt to write their contributions off on their taxes (this is imperative for corporate sponsorships), increased credibility in the nonprofit sector, eligibility to apply for grants, possible exemption from state taxes, discounts on postage, Microsoft Word, Quickbooks, free professional GMAIL account, and more. 

If you are organizing a brand new nonprofit and want to receive tax-exempt status with the IRS, you may be wondering why there are two different forms and what the big difference is.  Both forms are applications for 501(c)3 status with the IRS.

Long Form 1023

The original form 1023 is often referred to as the long form 1023. This is the original application that was meant for nonprofits to complete in order to receive tax-exempt status. This form is extensive- about 20 pages that includes questions about program narratives, budgets, supporting documentation and more. It can take anywhere from 4-12 months for the application to be processed and the cost to file the form with the IRS is $600 (this is paid directly to the IRS and does not include consulting fees)

1023-EZ

While many new nonprofits were paying for fiscal sponsorships (partnering with more experienced nonprofits) while saving up for their own tax-exempt application, 1023-EZ form introduced in 2014 changed the game as a time-saving, affordable alternative. The new form 1023-EZ is a shortened version of the long form 1023 that is about 3 pages. The end results are the same- by filing this application nonprofits are applying for and receiving tax-exempt status with the IRS. The 1023-EZ form questions resemble the long form 1023 form in many ways, but it doesn't require a list of activities and doesn't ask for supporting documentation for the information provided. This form has a much quicker processing time, with most applications being approved within 90 days. The cost to file is $275 (this is paid directly to the IRS  and does not include consulting fees)

Most new nonprofits qualify for the streamlined 1023EZ 501(c)3 application. Among the few that do not qualify are schools, hospitals, churches, financial consulting agencies, and organizations that have any tangible reason (such as a written agreement) that they will be receiving 50k or more in the next 3 years. If after purchasing we determine that your organization should file long form 1023, we will give you the option to upgrade your package (additional $600) or issue your organization a full refund. 

Nonprofit For Newbies offers long form 1023 filing services as an add-on to any of our packages for an additional $800, which would also cover the long form 1023 application filing fee that we pay directly to the IRS. You can select this as add-on  to any of our filing packages at checkout. We still offer the same great "pay-as-you-go" installment plan. 

For long form 1023 applications, We provide key information about your organization, navigate red flag areas warranting additional efforts to prove eligibility for tax-exemption, provide high-quality narrative responses explaining your past, present, and future programs, complete a list of yes/no questions confirming legal compliance, attach corporate documents to satisfy THE operational test and demonstrate good governance, add financial projections, and provide any supplemental responses to the IRS that further explain the purpose of your organization and why it qualifies for tax-exempt status. 

Prior to submission the form is reviewed by one of our partner attorneys or CPAs who specialize in completing 501c3 applications and legally advising 501c3 organizations. 

We offer a "pay-as-you-go" interest free installment plan that has a list of deliverables associated with each individual milestone payment. In other words, once you make a payment, we move on to the next milestone. 

Our basic startup package includes 3 milestones, and larger packages (standard and premium) will include more milestone payments. If you would like to file the long form 1023, there will be an additional milestone payment added.

After you purchase, we draft a custom proposal outlining your expected payment dates based on how quickly we can deliver the service to you. If at any time the scheduled payment dates don't work, just let us know! You can also put a pause on services if things aren't going as planned. We are here for you and flexible throughout this exciting new journey!

Due to the nature of business filing services, we don't reccomend you file without professional guidance. 

Fixing your state paperwork could range from having to choose an entirely new name to redrafting your articles from scratch (most states don’t have a template for restated articles) and could cost an additional $100-$600 and extend the time that it takes the state to process your paperwork. In addition, you can get approved from the state and still not be in compliance with the IRS. 90% of the time you need to manually add information to the template the state gives you in order to be in compliance. 

If you hired a professional to start the process and want us to finish, you may qualify for discounted services. Email customerservice@nonprofitfornewibes.com or send us a message through our contact form to request a custom quote. 

Pre-drafted or filed federal EIN number, Bylaws, & Conflict of Interest Policy do not qualify for discounted services.

If you filed without professional assistance, please ask for a $75 compliance review of all pre-drafted documentation (i.e. articles of incorporation, EIN number, bylaws, conflict of interest policy) to ensure federal compliance of any documentation the organization drafted, prior to receiving discounted services. 

Ultimately, we care and want to make sure that your organization is in compliance and won't run into any problems down the road!  

Weekly coaching calls that walk you step-by-step through preparing your "grant ready" business plan plus 35 hours of video content & 100s of ready-to-use resources & templates to improve your chances of being approved as an early stage NPO. Click here to learn more

Absolutely! This service is an investment into your organization, and your organization can pay you back for your out-of-pocket expenses. For this to happen, you must add the price of this consulting service and the price of filing fees as a 'reimbursable expense to the founder' when you complete your operational budget. We can help you with this during your initial project kick off call.

Our filing services are a hands off approach for busy Founders, who may have alot on their hands, such as a full time job and raising a family, while also trying to get their nonprofit organization off of the ground. However, we believe our information should be accessible to EVERYONE. For those who have a tight budget, but a little more time on their hands, we offer 45 minute for $99 workshop style consultations for us to hop on a zoom call and walk through the applications to acheive 501(c)3 status with professional guidance. We reccomend scheduling 2 sessions to complete paperwork from start to finish. 

Note: These consultations do not cover state and federal filing fees. This service is not offered for long form application 1023. 

At this time, we only provide filing services for organizations that fit cleanly into the IRS definition of a charitable organization (primary objectives are philanthropy and social well-being e.g. educational, religious or other activities serving the public interest or common good).  Contact us for a referral to for-profit filing services.

Our company's mission is to make a difference in the world, one nonprofit at a time. We do not conduct business and have zero tolerance for organizations that are attempting to achieve 501(c)3 status for purposes that are not explicitly charitable, or individuals who have a track record of unethical behavior in previously established companies or nonprofit organizations.  

While it is not typically required for in-state registration, we highly reccomend your organization purchase a registered agent service AND virtual office address to protect your privacy, ensure you receive legal notices, and remain in compliance.