A package that outlines the process and gives a step-by-step explanation of how to file as a nonprofit is available for download from the Internal Revenue Service. This bundle is called the Form 1023 package, and makes the process reasonably straightforward. Additionally, there is a practical list of specific forms and documents included at the end of this book for reference.
Additional materials that will likely be required include:
- Employee Identification Number
- Articles of Incorporation
- Copy of the Certificate of Incorporation
- Copy of organization bylaws
- Description of activities
- Financial statements for as many as 4 years back, or proposed budget for 2 or more years.
- Statement of assets and liabilities
- Copies of leases or contracts
- Distributed written materials (including advertisements)
In 2005, the IRS fielded over 65,000 applications for nonprofit tax-exempt status, so once an organization has filed with the Internal Revenue Service, it will have to wait as long as three years. Trends indicate that nonprofits are being established at a higher rates every year, so this wait may increase through time. For nonprofits that require their application be looked at quickly in order to secure a particular grant, they may be able to pay an additional extenuating circumstances fee to expedite their request.
