Once a non-profit corporation has been formed, its bylaws have been prepared, and an organizational meeting has been held to ratify the corporate documents, the next step is to complete IRS Form 1023 (“Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code”).
Form 1023 is an extensive document that describes how the organization gets its funding, what activities it will conduct, who will be paid, and who are in charge. Based on what is submitted, and any other questions the IRS examining officer might have, the IRS will determine whether or not the organization qualifies as a 501(c)(3) not-for-profit, and, if requested, also whether the organization is a private foundation or public charity. In general, the determination is made by examining the 501(c)(3) application against applicable laws, rules and regulations, as well as unwritten customs.
James Hsui, PLLC can guide you through the process of completing Form 1023 and review it before it is submitted to the IRS. Please contact us today for more information.