Review of “Prepare Your Own 501(c)(3) Application” by Sandy Deja
Daily Dose of Nonprofit Law
Category Archives: Application for Exemption
IRS Cyber Assistant – Is it Worth the Wait?
Cyber Assistant is a great idea whose time has come, but it won’t ensure the success of an application. It should make filing less confusing, reduce the opportunity for errors, and save filers a little money in the process. Still, the benefits of securing the exemption combined with the uncertainty regarding the release date lead me to conclude that those who can afford to file now should go ahead and file. Those who can’t afford the higher user fee should be mindful of their 27 month deadline if they choose to wait.
ABC’s for Exempt Organizations
The ever improving IRS Exempt Organizations webpage offers the following resources to help the manager of a new exempt organization navigate tax issues. The site notes that these materials are not comprehensive and that for further assistance, exempt organizations should consult a tax adviser. The materials, do, however, offer a valuable primer to those looking to educate themselves about their tax compliance obligations.
IRS Issues Exempt Organization Agenda for 2009-2010
A listing of the IRS and Treasury Department’s joint priority guidance plan for the 2009-2010 tax year.
Caveat Emptor – Legal Document Preparers
In my practice representing nonprofit and tax-exempt organizations, there are often themes that emerge. Over the last few weeks I have had a spate of calls from would be nonprofits that paid either a nonprofit start-up “consultant” or a document preparation company to form their nonprofit and handle their IRS filings. In each case, the work product that made it to my office required substantially more work to fix than it would have taken to do properly the first time around. You get what you pay for, and sometimes, you pay dearly for what you get. Before hiring someone to help you with the legal and tax aspects of starting a nonprofit, make sure they are licensed to provide the type of assistance they are offering, have specific experience representing nonprofits, and are in fact representing you rather than helping you to commit malpractice on yourself.
EO Exemption Application User Fees to Increase in 2010
Here’s a tip for nonprofits planning to apply for tax exempt status: submit the application for exemption in 2009, before the fees increase.
The IRS has announced it is implementing an online application system known as Cyber Assistant in 2010. Once it’s launched, the application fees will change again and there will be a reduced fee for organizations [...]
Part III: Starting a Nonprofit in Arizona – Applying for Tax-Exempt Status
Forming a nonprofit corporation is not the same as being tax-exempt. To obtain 501(c)(3) status, newly formed entities must apply to the IRS for a formal determination of exemption. Entities seeking 501(c)(3) status apply by filing Form 1023. (Entities seeking exemption under other sections of 501(c) file Form 1024.)
Newly formed organizations applying for exemption face a chicken and egg dilemma. Form 1023 requests considerable detail regarding the charity’s planned programs and activities. The attitude of the IRS is that requiring applicants to articulate detailed plans is a small price to pay for the significant tax benefits associated with 501(c)(3) status.
Part I: Starting a Nonprofit in Arizona – Laying the Groundwork
I receive several calls a week from people who want to start a new non-profit. Looking back on my legal career, I realize that many of the tax-exempt organizations I helped to create early on never got off the ground. Today, I consider it part of my responsibility to the potential new client and to the sector to educate would be founders on the realities of the marketplace. What follows is a walk through the typical discussion that I have with potential founders.
