IRS FORM 1023 APPLICATION CHECKLIST

APPLICATION FOR RECOGNITION OF EXEMPTION

UNDER SECTION 501(c)(3)

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OVERVIEW

About Form 1023

Form 1023 is the application used by most organizations to apply for recognition of exemption under Section 501(c)(3) of the Internal Revenue Code. This checklist will help you gather and organize the required information.

Filing Information

Filing Method: Electronic filing through Pay.gov (mandatory)
Filing Fee: $600 (as of 2025; verify current fee)
Processing Time: 3-6 months (may be longer for complex applications)
IRS Contact: Exempt Organizations Customer Account Services: 877-829-5500

Who Should File Form 1023

• Organizations that do NOT qualify for Form 1023-EZ
• Organizations with gross receipts exceeding $50,000 in any of the first 3 years
• Organizations with total assets exceeding $250,000
• Churches and church-related organizations (though filing is optional)
• Organizations structured as LLCs
• Organizations that want more certainty in the approval process

[// GUIDANCE: Organizations expecting less than $50,000 in annual gross receipts may be eligible for the streamlined Form 1023-EZ. However, Form 1023 provides more certainty and is recommended for most organizations.]

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PRE-APPLICATION REQUIREMENTS

Before You Begin

☐ Form Legal Entity: Organization must be legally formed under state law

☐ Obtain EIN: Apply for Employer Identification Number (Form SS-4 or online at irs.gov)
- EIN: ________________________

☐ Create Pay.gov Account: Required for electronic filing
- Account created: ☐ Yes

☐ Gather Organizing Documents: Articles of Incorporation and Bylaws must be finalized

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DOCUMENT CHECKLIST

Required Documents to Upload (Single PDF, max 15MB)

☐ Articles of Incorporation (certified copy from state)
- Filed with state: ☐ Yes
- Date filed: ________________________
- Contains required IRS language:
☐ Purpose clause limiting to 501(c)(3) purposes
☐ Dissolution clause dedicating assets to exempt purposes
☐ Private inurement prohibition
☐ Political activity restrictions

☐ Bylaws (signed and dated)
- Date adopted: ________________________
- Board approved: ☐ Yes

☐ Conflict of Interest Policy
- Date adopted: ________________________

☐ Board Meeting Minutes (organizational meeting and any subsequent meetings)

☐ Form 2848 - Power of Attorney (if attorney/representative will handle application)

☐ Form 8821 - Tax Information Authorization (if applicable)

Optional/Supporting Documents

☐ Compensation studies or comparability data
☐ Contracts with related parties (if any)
☐ Brochures, publications, or program descriptions
☐ Fundraising materials
☐ Website printouts
☐ Grant agreements or funding commitments
☐ Leases or property agreements

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PART I - IDENTIFICATION OF APPLICANT

Organization Information

☐ Legal Name: ________________________________________________________________

☐ EIN: ___ - _______________

☐ Mailing Address:
_______________________________________________________________________________
_______________________________________________________________________________

☐ Website: ________________________________________________________________

☐ Primary Contact Name and Title: ______________________________________________

☐ Contact Phone: ________________________

☐ Contact Email: ________________________

Formation Information

☐ Month Formed: ________________________

☐ State of Incorporation: ________________________

☐ Form of Organization:
☐ Corporation
☐ Unincorporated Association
☐ Trust
☐ LLC (treated as corporation for tax purposes)

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PART II - ORGANIZATIONAL STRUCTURE

Governing Body

☐ List of Directors/Trustees:

Name	Title	Address	Compensation
			$
			$
			$
			$

☐ Are any directors/trustees related by family or business? ☐ Yes ☐ No
- If yes, describe: __________________________________________________________

☐ Will any directors/trustees receive compensation? ☐ Yes ☐ No
- If yes, provide details and comparability data

Officers

☐ List of Officers:

Name	Title	Address	Compensation
			$
			$
			$
			$

Key Employees

☐ Highly Compensated Employees (compensation > $100,000):

Name	Title	Duties	Hours/Week	Compensation
				$
				$

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PART III - REQUIRED PROVISIONS IN ORGANIZING DOCUMENT

[// GUIDANCE (CRITICAL): The IRS will REJECT applications if the Articles of Incorporation do not contain these provisions. Do not proceed until your Articles contain the required language.]

Purpose Clause (IRC Section 501(c)(3))

☐ Articles contain language stating organization is organized exclusively for one or more of the following purposes:
☐ Charitable
☐ Religious
☐ Educational
☐ Scientific
☐ Literary
☐ Testing for public safety
☐ Fostering national or international amateur sports competition
☐ Prevention of cruelty to children or animals

Sample Language:
"This corporation is organized exclusively for [charitable, educational, religious, scientific] purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code."

Dissolution Clause

☐ Articles contain language dedicating assets to exempt purposes upon dissolution

Sample Language:
"Upon dissolution of the corporation, assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or shall be distributed to the federal government, or to a state or local government, for a public purpose."

Private Inurement Prohibition

☐ Articles or Bylaws prohibit private inurement

Sample Language:
"No part of the net earnings of the corporation shall inure to the benefit of, or be distributable to its members, trustees, officers, or other private persons."

Political Activity Restrictions

☐ Articles or Bylaws contain political activity restrictions

Sample Language:
"No substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in any political campaign on behalf of or in opposition to any candidate for public office."

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PART IV - NARRATIVE DESCRIPTION OF ACTIVITIES

[// GUIDANCE: This is the most important part of the application. Be specific and thorough. Vague descriptions are the #1 reason for IRS questions and delays.]

Required Narrative Elements

For EACH activity the organization conducts or will conduct, describe:

☐ Activity 1: _______________________________

What is the activity?
_______________________________________________________________________________
_______________________________________________________________________________

Who conducts the activity? (employees, volunteers, contractors)
_______________________________________________________________________________

When and where is the activity conducted?
_______________________________________________________________________________

Who benefits from the activity?
_______________________________________________________________________________

How does this activity further your exempt purpose?
_______________________________________________________________________________
_______________________________________________________________________________

What percentage of time/resources will be devoted to this activity? _____%

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☐ Activity 2: _______________________________

What is the activity?
_______________________________________________________________________________
_______________________________________________________________________________

Who conducts the activity?
_______________________________________________________________________________

When and where is the activity conducted?
_______________________________________________________________________________

Who benefits from the activity?
_______________________________________________________________________________

How does this activity further your exempt purpose?
_______________________________________________________________________________
_______________________________________________________________________________

What percentage of time/resources will be devoted to this activity? _____%

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☐ Activity 3: _______________________________

[Add additional activities as needed]

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PART V - COMPENSATION AND FINANCIAL ARRANGEMENTS

Compensation of Officers, Directors, and Employees

☐ Describe how compensation is determined:
_______________________________________________________________________________

☐ Is comparability data used? ☐ Yes ☐ No

☐ Who approves compensation decisions?
_______________________________________________________________________________

☐ Are compensation decisions documented in minutes? ☐ Yes ☐ No

Transactions with Related Parties

☐ Will the organization have any financial transactions with:
- Officers, directors, or trustees? ☐ Yes ☐ No
- Family members of the above? ☐ Yes ☐ No
- Entities owned by the above? ☐ Yes ☐ No

If yes, describe:
_______________________________________________________________________________
_______________________________________________________________________________

Conflict of Interest Policy

☐ Has the organization adopted a conflict of interest policy? ☐ Yes ☐ No
- Date adopted: ________________________
- Does the policy require annual disclosure statements? ☐ Yes ☐ No
- Is the policy attached to the application? ☐ Yes ☐ No

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PART VI - FINANCIAL DATA

Three-Year Financial Projections

[// GUIDANCE: You must provide actual figures for completed years and good faith projections for future years. The IRS will compare actual to projected in future audits.]

Revenue

Category	Year 1	Year 2	Year 3
Contributions/Grants	$	$	$
Program Service Revenue	$	$	$
Membership Dues	$	$	$
Investment Income	$	$	$
Special Events (gross)	$	$	$
Other Revenue	$	$	$
TOTAL REVENUE	$	$	$

Expenses

Category	Year 1	Year 2	Year 3
Compensation	$	$	$
Professional Fees	$	$	$
Occupancy	$	$	$
Travel	$	$	$
Printing/Publications	$	$	$
Program Expenses	$	$	$
Other Expenses	$	$	$
TOTAL EXPENSES	$	$	$

Net Assets

Category	Year 1	Year 2	Year 3
Beginning Net Assets	$	$	$
Revenue minus Expenses	$	$	$
Ending Net Assets	$	$	$

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PART VII - FOUNDATION CLASSIFICATION

Public Charity vs. Private Foundation

[// GUIDANCE: Most organizations prefer public charity status to avoid private foundation restrictions. Answer these questions to determine classification.]

☐ Will the organization receive at least 1/3 of its support from:
- Governmental units? ☐ Yes ☐ No
- Contributions from the general public? ☐ Yes ☐ No
- Program service revenue from exempt activities? ☐ Yes ☐ No

Public Charity Classification (check one)

☐ 509(a)(1) and 170(b)(1)(A)(vi) - Publicly supported organization receiving substantial support from government and/or public contributions

☐ 509(a)(2) - Organization receiving more than 1/3 support from gifts, grants, contributions, and gross receipts from exempt activities

☐ 509(a)(1) and 170(b)(1)(A)(i) - Church

☐ 509(a)(1) and 170(b)(1)(A)(ii) - School

☐ 509(a)(1) and 170(b)(1)(A)(iii) - Hospital or medical research organization

☐ 509(a)(3) - Supporting organization

☐ Private Foundation - If none of the above apply

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PART VIII - SPECIAL ACTIVITIES (SCHEDULES)

[// GUIDANCE: Complete applicable schedules based on organization's activities]

Schedule A - Churches

☐ Is the organization a church? ☐ Yes ☐ No
If yes, complete Schedule A

Schedule B - Schools, Colleges, Universities

☐ Is the organization a school? ☐ Yes ☐ No
If yes, complete Schedule B

Schedule C - Hospitals and Medical Research Organizations

☐ Is the organization a hospital or medical research organization? ☐ Yes ☐ No
If yes, complete Schedule C

Schedule D - Supporting Organizations

☐ Is the organization a supporting organization under 509(a)(3)? ☐ Yes ☐ No
If yes, complete Schedule D

Schedule E - Organizations Not Filing Form 1023 Within 27 Months

☐ Is the organization filing more than 27 months after formation? ☐ Yes ☐ No
If yes, complete Schedule E

Schedule F - Homes for the Elderly or Handicapped and Low-Income Housing

☐ Does the organization provide housing for the elderly, handicapped, or low-income? ☐ Yes ☐ No
If yes, complete Schedule F

Schedule G - Successors to Other Organizations

☐ Is the organization a successor to a for-profit or another nonprofit? ☐ Yes ☐ No
If yes, complete Schedule G

Schedule H - Organizations Providing Scholarships, Fellowships, Educational Loans

☐ Does the organization provide scholarships, grants, or loans to individuals? ☐ Yes ☐ No
If yes, complete Schedule H

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FILING CHECKLIST

Final Review Before Filing

☐ All Parts of Form 1023 completed
☐ All applicable Schedules completed
☐ Narrative description of activities is specific and thorough
☐ Financial data is complete and reasonable
☐ All required documents compiled into single PDF (max 15MB)
☐ PDF includes:
☐ Certified Articles of Incorporation
☐ Adopted Bylaws
☐ Conflict of Interest Policy
☐ Meeting Minutes
☐ Form 2848 (if using representative)
☐ Payment information ready ($600 filing fee)

Filing Process

1. ☐ Go to Pay.gov
2. ☐ Search for "Form 1023"
3. ☐ Complete online application
4. ☐ Upload PDF attachment
5. ☐ Pay filing fee
6. ☐ Receive confirmation number: ________________________
7. ☐ Save/print confirmation for records

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AFTER FILING

What to Expect

Acknowledgment Letter: IRS will send acknowledgment within 2-4 weeks

Additional Information Requests: IRS may request additional information (respond promptly)

Determination Letter: If approved, you will receive a determination letter recognizing 501(c)(3) status

Typical Processing Time: 3-6 months (longer if additional information needed)

Post-Approval Requirements

☐ Keep determination letter in permanent records
☐ Make Form 1023 and determination letter available for public inspection
☐ File Form 990 (or 990-EZ or 990-N) annually
☐ Apply for state tax exemptions
☐ Register for charitable solicitation (if required by state)
☐ Comply with all ongoing 501(c)(3) requirements

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IRS RESOURCES

Form 1023 and Instructions: www.irs.gov/forms-pubs/about-form-1023

Publication 557: Tax-Exempt Status for Your Organization
www.irs.gov/publications/p557

Charities and Nonprofits: www.irs.gov/charities-non-profits

EO Customer Account Services: 877-829-5500

Pay.gov: www.pay.gov

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