This Form 1023 guide explains how to apply for 501(c)(3) tax-exempt status — by forming a qualifying nonprofit, gathering the correct organizing & financial documents — and filing a complete Form 1023 electronically. Done correctly, such a process results in an official recognition of your organization as a tax-exempt public charity.
For many organization founders, the form feels long and technical. Yet, a clear path can turn it into a structured project — instead of a stressful task.
Table of Contents
- What Is IRS Form 1023 for 501(c)(3) Organizations?
- Who should use Form 1023 instead of Form 1023-EZ?
- Which organizations do not need to file a 501(c)(3) application?
- How should you prepare before you apply for 501(c)(3) tax-exempt status?
- How do you complete Form 1023 step by step?
- What are the main differences between Form 1023 vs Form 1023-EZ?
- Maris & Associates, CPAs presents assistance with Form 1023
- FAQs
What Is IRS Form 1023 for 501(c)(3) Organizations?
IRS Form 1023 is the official Application for Recognition of Exemption Under Section 501(c)(3) — that specific nonprofits should submit in order to receive federal tax-exempt status.
By filing this 501(c)(3) application and receiving an approval letter — called a determination letter — the organization can:
- be exempt from federal income tax on its related charitable activities.
- accept contributions that are deductible for donors in case of satisfying the requirements
- show funders and partners as well as grantmakers, that the IRS recognizes the organization as a qualified public charity
The form is filed electronically through pay.gov along with a user fee — and is generally after the nonprofit is legally formed at the state level.
Who should use Form 1023 instead of Form 1023-EZ?
The full Form 1023 should be used if the nonprofit does not satisfy the qualifications for the streamlined Form 1023-EZ — or if you want to provide a more detailed application from the start. Any organization can choose the long form. Yet, only specific small organizations may leverage Form 1023-EZ after passing an eligibility worksheet. Common reasons to perform filing for the full form can be presented as below:
- Expecting gross receipts above $50,000 per year in the first years of operation
- Anticipating assets above the 1023-EZ limits indicated in the IRS instructions
- Structuring or planned activities appear on the 1023-EZ “not eligible” list — for example, specific supporting organizations or entities with more complicated operations
Form 1023-EZ is still a full 501(c)(3) application — However it is shorter and leverages attestations instead of detailed narratives.But , it is not available to every nonprofit — so reviewing the IRS Form 1023 instructions and the EZ worksheet is a major early action.
Which organizations do not need to file a 501(c)(3) application?
Specific organizations are treated as 501(c)(3) entities — even if they do not file Form 1023 or Form 1023-EZ.
Examples can be listed as below:
- Churches & synagogues & mosques and other temples
- Integrated auxiliaries of churches
- Very small organizations with gross receipts normally not more than $5,000 per year
Even these groups might still prefer to file to receive an IRS determination letter that donors and grantors can rely on.
How should you prepare before you apply for 501(c)(3) tax-exempt status?
Quality preparation practices make the 501(c)(3) application much more straightforward. Before touching the online form, make sure the presented items are ready:
Legal entity and organizing documents
- Form the nonprofit corporation or trust or association at the state level
- Confirm that the articles cover a clear charitable purpose clause and a proper dissolution clause — that dedicates assets to another 501(c)(3) or to government for public purposes.
Employer Identification Number
- Apply for an EIN using Form SS-4 or the IRS online EIN application — even if you have no employees yet
Mission and activities outline
- Write a plain-language & short description of your mission
- List your main programs, who you serve and where you will operate
Board and governance structure
- Confirm your board members and their roles with any family or business relationships
- Adopt bylaws that describe how decisions are made — and how conflicts of interest are handled
Financial information
- If you already operate — gather past income and expenses
- If you are new — prepare reasonable budgets for the next two years
When these items are 100% complete, the IRS Form 1023 instructions will feel far less overwhelming — because you will already have the answers they expect.
How do you complete Form 1023 step by step?
Completing Form 1023 is fundamental by moving through each section in order and giving consistent information about the nonprofit’s purpose & structure and finances. We can summarize the process as below:
- Creating a Pay.gov account
Access Form 1023 through pay.gov and start a new application.
- Filling in basic organization details
Enter your name & EIN and address with formation date in the identification section.
- Confirming your entity type and organizing document
State whether you are a corporation, trust, LLC, or association. Then attach your approved articles and any amendments.
- Describing the exempt purpose and activities
Explain what you actually do — programs, events and services as well as the information on how such information support your mission. Include who benefits, how often activities occur and how you evaluate the results.
- Reporting compensation and relationships
List officers, directors, key staff and planned payments. Then disclose family or business ties among insiders.
- Providing financial data
Historical numbers should be entered if you already operate. Add projections for upcoming years that fulfill the narrative and planned programs.
Signing and paying the user fee
Every answer should be reviewed carefully. Pay the current user fee through pay.gov and submit the form online
What are the main differences between Form 1023 vs Form 1023-EZ?
Form 1023 vs Form 1023-EZ both request recognition as a 501(c)(3) — but they are distinct as outlined in the below table:
| Feature | Form 1023 — Long Form | Form 1023-EZ — Streamlined Form |
|---|---|---|
| Typical users | Larger or more complicated nonprofits | Smaller & simpler organizations that pass EZ worksheet |
| Financial size expectations | Generally used when receipts are above EZ thresholds | Limited to orgs with gross receipts at or below $50,000 annually — and other tests |
| Level of detail | Full narratives, attachments and schedules | Shorter online form with attestations |
| Filing method | pay.gov | pay.gov |
| User fee | $600 user fee, paid at submission | $275 user fee, paid at submission |
Maris & Associates, CPAs presents assistance with Form 1023
Maris & Associates, CPAs presents guidance to nonprofits through the full process of applying for 501(c)(3) tax-exempt status — from planning process to the final submission, as detailed below:
Eligibility review and strategy
- We simply assess whether Form 1023 or 1023-EZ should be used
- Our team reviews your structure and activities with funding model before you file
Document and narrative support
- Maris & Associates, CPAs examines articles of incorporation and bylaws for required 501(c)(3) language
- We craft detailed program descriptions that completes the budgets and the mission
Financial projections and reporting
- Our team builds realistic forecasts that fit your growth plans
- We organize historical records to satisfy the IRS expectations
Application preparation and pay.gov filing
- We simply complete each section of the form carefully
- Our professionals handle attachments and submit the application electronically on your behalf
IRS follow-up and full compliance
- Our experts respond to IRS requests for clarification
- We advise on the specific actions after approval — covering annual filings and operational policies.
If you are ready to move from idea to recognized nonprofit, partnering with Maris & Associates, CPAs can make the entire process more confident — so you can stay focused on serving your community. Contact us today for professional aid.
FAQs
What should I prepare before I follow the IRS Form 1023 instructions online?
Before following the IRS Form 1023 instructions, have your organizing documents, EIN, board list and activity descriptions along with two-year budgets ready — so you can proceed to 501(c)(3) tax-exempt status.
Is Form 1023-EZ always the best way to apply for 501(c)(3) tax-exempt status?
Form 1023-EZ can be faster for small & eligible nonprofits — but specific organizations still choose the full form when their 501(c)(3) application is more complicated or close to the EZ limits.
Can I use this Form 1023 guide if my nonprofit is just getting started?
Yes, this Form 1023 works well for new entities — as it walks you through forming the organization and defining activities, and and then completing the 501(c)(3) application from day one.
When do donors benefit after I apply for 501(c)(3) tax-exempt status with Form 1023?
Once the IRS approves the Form 1023 and grants recognition, eligible gifts linked with that 501(c)(3) application can generally be treated as tax-deductible for donors.
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