What are the steps to obtaining 501(c)(3) status?

What are the steps to obtaining 501(c)(3) status?

While there are many steps necessary to start a nonprofit, there are three foundation steps that are needed to secure 501(c)(3) status: 
​
Step 1: Incorporation- Incorporate within your state of domicile, which is typically your home state or primary operating state.
Step 2: Obtain an EIN - Obtain your organization’s EIN (Employer Identification Number) with the IRS. An EIN is like a social security number for your new nonprofit.
Step 3:  Apply for 501(C)(3) Tax-Exempt Status-  To apply for 501(c)(3) tax-exempt status with the IRS, the 1023 or 1023-ez application must be completed and submitted along with the IRS application fee. $275 for the 1023-EZ or $600 for the 1023-Long.

    • Related Articles

    • Ways To Lose Tax-Exempt Status

      There are many ways an organization can lose tax-exempt status. We’ll expand on the most common methods below. If you have questions about your specific situation, please reach out to one of BryteBridge’s specialists, who guide you with the best ...

    • Where’s My Application for Tax-Exempt Status?

      The IRS receives more than 95,000 applications for tax-exempt status each year. We've provided the following guidelines for when you can expect to hear from IRS. What happens after I submit my application? After submitting your application for ...

    • What types of organizations will qualify for 501(c)(3) tax exemption?

      To qualify for 501(c)(3) tax exemption you must be organized and operated exclusively for one or more of the following purposes: Charitable Religious Educational Scientific Literary Testing for public safety To foster national or international ...

    • How long will the IRS take to approve our 501(C)(3)?

      IRS Approval Times: The 1023 EZ is approved on average between 2-6 weeks after submission. The 1023 Full application on average will be approved between 2-6 months after submission. During times where the IRS is experiencing delays (i.e. COVID, ...

    • If my 501(c)(3) is approved, do I still have to pay state income tax and sales tax?

      This varies by state. Some states will automatically exempt organizations that have been deemed exempt at the federal level. Other states require organizations to apply separately for state level exemptions. BryteBridge can help you make sure you are ...