How to Fill Out IRS Form 1023-EZ (w/Examples) + FAQs

To fill out IRS Form 1023-EZ, you confirm your nonprofit is eligible, gather key information (EIN, purpose, officers, etc.), and complete the streamlined online form through Pay.gov step by step. In 2025, the IRS reported that 80% of 1023-EZ applications were processed within about 22 days, compared to roughly 6 months for the long-form 1023. This time-saving benefit makes it critical to prepare the form accurately so your small charity can quickly secure 501(c)(3) status.

• 📋 Step-by-step instructions for completing each part of Form 1023-EZ, from basic info to signature.
• ⚠️ Eligibility rules & traps to ensure you qualify and avoid automatic rejection.
• ⚖️ Form 1023-EZ vs. Form 1023 comparison (pros, cons, and which to use).
• 💡 Real-world examples of scenarios where Form 1023-EZ is used (and when it’s not appropriate).
• 🌐 Federal and state requirements – IRS rules first, then California, Texas, New York nuances you need to know.

What Is IRS Form 1023-EZ and Who Should Use It?

IRS Form 1023-EZ is the streamlined application for 501(c)(3) tax-exempt status. It’s a shorter, online-only form created in 2014 to help small nonprofits get federal tax exemption more easily. Instead of the lengthy standard Form 1023 (which runs 28 pages plus attachments), the 1023-EZ is about a 3-page form you fill out on the IRS Pay.gov website. Small charities can thereby save time and money: the user fee for Form 1023-EZ is $275 (versus $600 for the long form), and approvals are typically much faster.

This streamlined form is designed for small organizations with relatively simple operations. The IRS Tax Exempt and Government Entities (TE/GE) division, which processes exemption applications, developed Form 1023-EZ to cut down a historic backlog of applications. By using attestations instead of detailed documentation, the EZ form lets the IRS grant status quickly if basic requirements are met. However, not every nonprofit can or should use Form 1023-EZ.

Why Form 1023-EZ Exists

Prior to 2014, every group seeking 501(c)(3) status had to slog through the full Form 1023. This led to severe delays (a decade ago, a backlog of over 60,000 applications meant waits of a year or more!). Form 1023-EZ was introduced to fast-track eligible small charities. By 2021, roughly 65% of new tax-exempt applicants were using the EZ form. It covers the same core intent—proving your organization is organized and operated exclusively for charitable purposes—but in a simplified format.

Note: Approval of Form 1023-EZ grants your organization the same 501(c)(3) status as the long form. Donations become tax-deductible and your nonprofit is federally tax-exempt. But the ease of EZ comes with responsibility: you attest to meeting all requirements truthfully. The IRS can later audit or revoke status if an EZ application was misleading.

Who Should Use Form 1023-EZ (Eligibility Basics)

Form 1023-EZ is reserved for smaller nonprofits. In general, you should use it only if:

• Your organization’s annual gross receipts are expected to be $50,000 or less for the current year and each of the next 3 years.
• Your organization’s total assets are $250,000 or less.
• Your nonprofit is organized as a corporation, unincorporated association, or trust under U.S. law (formed in one of the 50 states, D.C., or U.S. territories). Sole proprietorships, partnerships, and foreign organizations are not eligible.
• You are not a type of nonprofit that the IRS deems too complex for EZ. Ineligible organizations include:
  • Churches and related religious organizations (church congregations, conventions/associations of churches, etc.; these must file the long form for IRS recognition).
  • Schools, colleges, and universities (educational institutions that provide formal instruction).
  • Hospitals and medical research organizations (e.g. general hospitals, blood banks, medical research institutes).
  • Credit counseling organizations and other complex entities (for example, certain HMOs or cooperative service organizations).
  • Supporting organizations (i.e. charities supporting other nonprofits, classified under 509(a)(3)).

If you answer “Yes” to any of the disqualifying factors on the official Eligibility Worksheet (included in the Form 1023-EZ instructions), you cannot use Form 1023-EZ. You would need to file the standard Form 1023 instead. For example, a brand-new church or an organization expecting $100,000 in donations annually must go with the long form.

Tip: Before starting Form 1023-EZ, complete the IRS’s eligibility worksheet. The form itself will require you to attest that you meet all the criteria. If you submit the EZ form when ineligible, the IRS will reject your application (and you’ll lose time and the $275 fee).

Eligibility Requirements for Form 1023-EZ (Detailed)

Let’s break down the key eligibility rules you must satisfy before filing Form 1023-EZ. This is critical to “cover the full intent” of the process, as even innocent mistakes here can derail your application:

• Gross Receipts ≤ $50,000: Your nonprofit’s projected gross receipts (total income from donations, grants, events, etc.) should not exceed $50,000 in any of the next three years. Likewise, if you’ve been around for a bit, you shouldn’t have exceeded $50,000 in any of the past 3 years. This essentially targets Form 1023-EZ to truly small startups and community organizations.
• Total Assets ≤ $250,000: The total fair market value of your organization’s assets (cash, equipment, real estate, etc.) must not be more than $250,000. For a brand-new group, this typically means your starting bank balance plus any initial assets are under this threshold.
• Proper Entity Type: You must be organized as a nonprofit corporation, trust, or formal unincorporated association. LLCs or for-profit entities cannot directly become 501(c)(3) charities. (Exception: a single-member LLC wholly owned by a 501(c)(3) can sometimes receive exemption, but in such cases the parent is already exempt — not a scenario for 1023-EZ.)
• U.S. Organization: Only organizations created or domiciled in the United States (including U.S. territories) are eligible. If you formed your nonprofit under the laws of another country, you’ll need to file the long Form 1023.
• Allowed Purpose and Activities: Your nonprofit’s mission and activities must fall under the IRS’s recognized exempt purposes: charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports competition, and preventing cruelty to children or animals. If your mission strays beyond these (even partially), that’s a red flag. For instance, if your “nonprofit” is also running a side business unrelated to charity, or primarily benefiting private interests, you won’t qualify.
• No Disqualifying Organizations: As noted, certain categories of organizations cannot use 1023-EZ, regardless of size. To reiterate:
  • Churches and religious congregations (they are automatically exempt in many ways, but if they seek official IRS recognition, they must use Form 1023).
  • Schools/colleges that provide formal education (due to the detailed info required about curriculum, faculty, etc.).
  • Hospitals and medical research institutions.
  • Credit counseling or similar organizations that require extra financial oversight.
  • Supporting organizations (entities that exist to support other nonprofits financially or operationally).
  • Organizations with complex financial structures or specialized purposes (for example, a cooperative service organization of colleges, a charity funding individual scholarship accounts, etc.).
• Not Previously Revoked (with exceptions): If your organization had 501(c)(3) status in the past and lost it (often by failing to file annual 990 returns for 3 years), you usually must use the long form to reapply. The only exception is if you qualify for a simplified retroactive reinstatement under IRS Rev. Proc. 2014-11 (generally, first-time revocation, small organization). In that case, you can use Form 1023-EZ with Part V completed to request reinstatement. Otherwise, a previously revoked org is not eligible for the EZ process.
• Not a Successor to a For-Profit: The IRS doesn’t want you using 1023-EZ if you are essentially converting a for-profit business into a nonprofit or if you spun off from a commercial enterprise. Those situations demand the scrutiny of the long form (to ensure no insiders are inappropriately benefiting). If your new nonprofit is taking over assets or activities from a recently closed business that you or your board members owned, that’s a caution sign to use Form 1023 instead.
• Attestation of Truthfulness: While not a “criteria” per se, be aware that Form 1023-EZ is essentially you swearing that you meet all conditions and that your organization will abide by 501(c)(3) requirements. The form will have you check a box under penalty of perjury. The IRS trusts but verifies – they randomly select some EZ filers for deeper review. So ensure everything in your application is accurate (incorporation done, organizing documents in order, and activities truly as described).

By understanding these eligibility rules, you can decide upfront if Form 1023-EZ is the right path. If you’re on the fence (for example, you hope to exceed $50k donations soon, or you’re doing something nuanced like running a charter school or medical clinic), consider filing the long Form 1023 to be safe. Using the wrong form or ignoring the limits is a common trap – it will lead to rejection or even future issues if misrepresented.

Form 1023-EZ vs. Form 1023 (Pros and Cons)

Not sure whether to use the short form or the standard form? Here’s a side-by-side look at Form 1023-EZ vs. Form 1023 to help you understand the differences:

Criteria	Form 1023-EZ (Streamlined)	Form 1023 (Long Form)
Length & Complexity	~3 pages online (plus a worksheet); simple attestations.	28 pages + schedules + attachments; very detailed.
Eligibility	Only for eligible small organizations (≤$50k revenue, simple structure, no special-case orgs). Must attest to meeting criteria.	Available to all 501(c)(3) applicants (required for those ineligible for EZ).
User Fee	$275 (paid via Pay.gov, non-refundable).	$600 (as of 2023, via Pay.gov, non-refundable).
Processing Time	Much faster on average (often 2–4 weeks for approval if no issues; 80% approved within ~22 days).	Slower (commonly 4–6 months, sometimes longer due to IRS backlogs).
Information Required	Basic info (EIN, officers, mission statement) and yes/no attestations. No detailed financials or narratives up front.	Extensive info: narrative of activities, 3–5 years of financial projections or statements, names and compensation of officers, etc., plus organizing documents copies.
Review Process	Minimal upfront review. IRS often approves based on your attestations. They may conduct random post-approval audits or request additional info for a sample of EZ filers.	Thorough upfront review. An IRS agent examines your entire submission, and may come back with questions before deciding. More rigorous vetting before approval.
Outcome	501(c)(3) status (same legal standing as long form approval) if accepted. Determination letter typically issued via email or mail quickly.	501(c)(3) status if approved, with determination letter after review. (If denied, you can appeal or reapply.)
Pros	– Quick and easy for small startups – Lower cost – Less paperwork (no need to submit bylaws, narratives, etc.) – Frees you to get started sooner	– Comprehensive (good for complex orgs to explain themselves) – Some grantmakers or stakeholders feel more confident seeing a detailed IRS application – Allows exceptions (e.g., requesting advance ruling on public charity status, or exception from filing requirements)
Cons	– Not available if you don’t meet criteria – Little guidance given in form, so novices might oversimplify (risking issues later) – Lacks detail: IRS might not catch issues up front, but could later – State or donor perception: some states and major donors may ask for more documentation that EZ filers don’t submit initially	– Lengthy, can be daunting to prepare – Higher fee and longer wait – Requires gathering many documents (organizing documents, detailed financial forecasts, conflict of interest policy, etc.) – Small orgs might find it overkill if they could have used EZ

In summary, Form 1023-EZ is a fantastic tool if you qualify and have a straightforward charitable purpose. It saves time and gets you tax-exempt status faster, which can be vital for starting your programs and fundraising. However, the long Form 1023 still has its place – if you’re a larger or more complex startup nonprofit (or fall into any restricted category), you’ll have to tackle it. Some founders also choose the long form even if eligible for EZ, simply to put all details on record or to avoid any perception that they “took a shortcut.” There’s no stigma to using the EZ (the IRS created it for you!), but weigh the pros and cons for your situation.

Filling Out IRS Form 1023-EZ: Step-by-Step Instructions

Now let’s dive into how to fill out the Form 1023-EZ itself, line by line. The application is organized into six parts. We’ll explain each part in plain English, including what information you need to provide. Before you begin, make sure you have the following on hand:

• Your nonprofit’s Employer Identification Number (EIN).
• Your organizing documents (e.g. Articles of Incorporation or Trust document) and knowledge of what’s in them (purpose clause, dissolution clause, etc.).
• Basic details on your officers and directors (names and addresses).
• A short description of your mission/activities (you’ll type a brief 1-2 sentence statement).
• An idea of which foundation classification you fall under (public charity vs private foundation – we’ll cover this in Part IV).
• The ability to pay the $275 user fee online (bank account or credit card).

Form 1023-EZ is filed online via Pay.gov, so you’ll actually complete a web-form. However, it mirrors a PDF format. For clarity, we’ll refer to “lines” and “parts” as they appear on the form.

Part I – Identification of Applicant

This section is straightforward – it’s all about who your organization is and how to contact you. Ensure everything here matches your official records (your EIN letter, articles of incorporation, etc.) to avoid processing hiccups.

• Line 1a (Full Name of Organization): Enter your nonprofit’s legal name exactly as it appears in your organizing document (e.g. the name on your Articles of Incorporation, including any suffix like “Inc.” if applicable). No abbreviations or variations – consistency is key.
• Line 1b (Care of Name): If you want IRS mail to be directed “in care of” someone (or an organization) other than the nonprofit itself, you can enter that here. (For example, if you’re using an attorney or a founder’s address and need a name on it.) Otherwise, leave line 1b blank.
• Lines 1c–1f (Mailing Address): Provide the mailing address for your organization. This is where the IRS will send correspondence (including your determination letter, unless you opt for electronic). You can use a P.O. Box or a street address, whichever is reliable for official mail. Include suite or unit numbers if needed, city, state, and ZIP code.
• Line 2 (Employer Identification Number, EIN): Input your nine-digit EIN. You must have an EIN before submitting Form 1023-EZ. (If you don’t have one yet, pause and get your EIN from the IRS – it’s free and you can apply online.) Double-check the EIN for accuracy – a wrong number could tangle up your application with someone else’s data.
• Line 3 (Month Tax Year Ends): Every nonprofit has a fiscal year. Enter the two-digit month your annual accounting period ends. “12” for December year-end is common, but if you plan a different fiscal year (say ending June 30, which would be “06”), put that. Make sure your bylaws or board have established this.
• Line 4 (Person to Contact): Provide the name and title of the person the IRS should contact for any questions about this application. This could be one of your officers (e.g. President or Secretary) or another authorized individual helping with the filing. Make sure this person is knowledgeable about the application and has authority to respond.
• Line 5 (Contact Telephone Number): Self-explanatory – the daytime phone number for the contact person in Line 4. Include area code. Ideally, use a number that will be answered or checked regularly (and update the IRS if it changes).
• Line 6 (Fax Number): An optional field. You can provide a fax number for the contact person. In many cases this isn’t crucial – the IRS usually communicates via mail or sometimes phone/email – but it’s there if you use fax.
• Line 7 (User Fee Submitted): You don’t actually fill in the dollar amount; the Pay.gov system will auto-fill this once you pay. Currently it will show $275. Remember, this fee is non-refundable, so be sure you’re eligible and the form is complete before you submit.
• Line 8 (Officers, Directors, and Trustees): Here, you list up to five of your principal officers, directors, or trustees along with their titles and mailing addresses. The form specifically asks for names, titles, and addresses. If your organization has more than five people on the board, list the ones in the following order:
  1. President or chief executive officer or chief operating officer.
  2. Treasurer or chief financial officer.
  3. Chairperson of the governing body.
  4. Any officers, directors, and trustees who are substantial contributors (not already listed above).
  5. Any other officers, directors, and trustees who are related to a substantial contributor (not already listed above).
  6. Voting members of the governing body (not already listed above).
  7. Officers (not already listed above).
  If an individual serves in more than one office (for example, as both an officer and director), list this individual on only one line and list all offices held. You can use the nonprofit’s address for their mailing address if that’s easiest (often organizations use their official office address for all board members). Ensure these individuals and roles align with what’s in your organizing documents and bylaws. (This list matters because the person signing the form must be one of the names here.)
• Line 9a (Organization’s Website): If you have a website, enter the URL. If not, leave it blank. It’s fine if you don’t have one yet (many startups won’t).
• Line 9b (Organization’s Email): Optional, but you can provide an email address for your organization. The IRS might use this for educational materials or potentially communication. It could be an official org email or even the contact person’s email. Providing an email can be helpful to get e-correspondence.

Quick check: By the end of Part I, you’ve given the IRS your identifying details. Take a moment to verify everything – especially EIN and spelling of the name. Typos here can cause headaches (like an EIN not matching their records). Also, remember that one of the people listed in Line 8 must sign Part VI.

Part II – Organizational Structure

Part II establishes how your nonprofit is legally formed and what’s in your organizing document. This part essentially makes sure your entity is properly set up as a nonprofit under state law and that your articles or trust document meet the IRS’s basic requirements for 501(c)(3) status (purpose and dissolution clauses, etc.).

• Line 1 (Entity Type): You need to indicate what type of legal entity you are. The choices generally are Corporation, Trust, or Association. Choose the one that fits how you formed:
  • If you filed Articles of Incorporation with your state and have Inc. or Corp. in your name, you’re a corporation (most common).
  • If you created a Trust (with a trust document and trustees managing assets for charitable purpose), select trust.
  • If you didn’t formally incorporate but adopted a constitution or articles of association signed by at least two people, you might be an unincorporated association.
  Important: If you’re anything else (like an LLC or partnership), you’re not eligible – stop here and re-establish your entity correctly. The IRS expects a nonprofit entity that has a proper organizing document.
• Line 2 (Organizing Document): The form may ask you to confirm you have a “necessary organizing document” appropriate for your entity type. Essentially, this is checking that you have the paperwork to prove your creation:
  • For a corporation, this means your Articles of Incorporation that were filed and approved by your state (with a stamped filing date or similar).
  • For an unincorporated association, it means you have a document (like articles of association or a charter) that at minimum includes your organization’s name, its purpose, the date it was adopted, and signatures of at least two people. Bylaws may be considered an organizing document only if they contain your name, purpose, signatures, and clear intent to form an organization.
  • For a trust, it refers to your trust agreement or declaration of trust, signed and dated (and ideally showing when the trust was funded).
  You don’t send these documents in with Form 1023-EZ, but you are attesting that they exist and meet the requirements. Ensure you have them handy and that they contain the necessary clauses (next lines cover that). If you realize something’s missing, amend your documents before proceeding.
• Line 3 (Formation Date): Enter the date your organization was legally formed. This corresponds to:
  • The incorporation date on state records (for corporations).
  • The adoption date of your organizing document (for an association).
  • The date the trust was funded or established (for a trust).
  Use the format MM/DD/YYYY. This date is important because if it’s more than 27 months in the past, special rules apply (your tax-exempt status might not be retroactive to formation unless you file the long form or meet the reinstatement criteria). Usually, new orgs well within 27 months of formation are fine.
• Line 4 (State of Formation): Indicate the jurisdiction under whose laws you’re formed. For example, if you incorporated in Delaware but you operate in Texas, you would put “Delaware” because that’s the state that issued your incorporation. If you’re an unincorporated association, it might be the state where you adopted your charter. If a trust, the state governing the trust (often where the trust document says it’s executed or where the trustees are). This should match what’s on your organizing document. It’s typically a state (or D.C. or Puerto Rico, etc.). If it’s not a U.S. state (i.e. you formed in another country), you shouldn’t be using 1023-EZ.
• Line 5 (Purpose Clause in Organizing Document): Here you confirm that your organizing document includes a proper exempt purpose clause. In plainer terms: your articles of incorporation or trust papers must state that your organization is organized for one or more of the 501(c)(3) purposes (charitable, religious, educational, etc.). Often, nonprofits include a line like “This corporation is organized exclusively for charitable, educational, and scientific purposes under Section 501(c)(3) of the Internal Revenue Code.” If your organizing document explicitly references 501(c)(3) or lists only the acceptable purposes, you’re good. If it doesn’t, or if it lists something broad like “any lawful purpose,” you have a problem – you’ll need to amend it. The IRS does not consider a broad purpose clause acceptable. It must be limited to the allowed charitable purposes. Tip: If you used a state nonprofit incorporation template, check that it wasn’t too generic. Many states don’t automatically enforce a 501(c)(3) clause – it was on you to include it. This line on the form is basically you affirming: “Yes, our organizing doc limits us to 501(c)(3) purposes.”
• Line 6 (Activities Not in Furtherance of Exempt Purposes): Your organizing document also must not authorize activities that fall outside of 501(c)(3) purposes (except insubstantially). For example, your articles should not say you can operate a business unrelated to your mission or engage in political campaigns. Likewise, it should have a clause preventing any private profits (no part of net earnings benefiting private individuals). In practice, most organizing documents won’t list forbidden activities – they just don’t mention them. But if, hypothetically, your articles said “we may operate a social club and distribute profits to members,” that’s a big no-no. The form is implicitly asking: you don’t have any clause that empowers you to do non-charitable things, do you? Also, by signing the form you affirm your organization will not engage in prohibited activities: like no political campaign intervention, and not more than insubstantial lobbying. Typically, the example acceptable language (often included right after the purpose clause) states these limitations clearly. Essentially, you should ensure your founding document:
  • Prohibits private benefit/inurement (earnings can’t go to insiders).
  • Prohibits political campaign activity entirely.
  • Limits lobbying to an insubstantial amount (or is silent on it, which by default means you’ll obey the insubstantial rule).
  Most 501(c)(3) templates include a paragraph with these restrictions. If yours didn’t, consider amending the articles to add them before filing. When you answer this part, you’re saying “Yes, we have no powers beyond 501(c)(3) purposes and we won’t stray from the charitable scope.”
• Line 7 (Dissolution Clause): The IRS requires that upon dissolution (closing down) of your nonprofit, any remaining assets must go to another 501(c)(3) or for some public purpose. Your organizing document should state this explicitly. For example, “Upon the dissolution of this organization, assets shall be distributed for one or more exempt purposes within the meaning of Section 501(c)(3) of the Internal Revenue Code, or to the federal government, or to a state or local government, for a public purpose.” In some states, laws automatically say this for you (these are called “cy pres” states). But if your articles have an incorrect clause (like assets go to members or founders on dissolution), state law will not save you – you must amend that out. If you’re lucky to be in a state that assumes a charitable dissolution, not having a clause is okay; but having a bad clause is fatal. On the form, you are basically attesting that your organizing document permanently dedicates your assets to 501(c)(3) purposes. That means no one can ever pocket the assets for private gain – if you shut down, it goes to charity or government. Check your articles for a dissolution paragraph. If it’s missing and you’re in a state that doesn’t enforce it by default, add it and get an amendment filed before proceeding.

After completing Part II, you’ve effectively told the IRS: “We’re properly formed under law as a nonprofit, and our charter has the necessary 501(c)(3) language (purpose and dissolution) with no rogue provisions.” This part is where many people make mistakes by not verifying their articles of incorporation. It’s worth double-checking, because the IRS can and will reject applications if the organizing document doesn’t meet these standards (even via the EZ process, they might ask for a copy later or in an audit).

Part III – Your Specific Activities

This section gets into what your organization does (or will do) and a series of yes/no questions about its activities and operations. Although Form 1023-EZ doesn’t collect a full narrative or detailed financials, Part III ensures you’re pursuing legitimate 501(c)(3) purposes and flags any areas that might need further review.

• Line 1 (Brief Mission Description, 250 characters): Here you provide a concise statement of your nonprofit’s mission or most significant activities. You only have 250 characters (about a tweet’s length), so make it count. Describe what your organization will do, in concrete terms, to further a 501(c)(3) purpose. For example: “We will operate a no-kill animal shelter to rescue homeless pets and provide adoption services” or “We provide free after-school tutoring and homework help to underprivileged children in our community.”
  • Do focus on the charitable service or program.
  • Don’t just restate the purpose clause or be too vague (e.g. “help people in need” is too broad without context).
  • Don’t list speculative future ideas that are not firm; stick to what you are doing or definitely plan to do soon.
  Why this matters: It gives the IRS a snapshot. If your mission description doesn’t sound like a 501(c)(3) activity, that’s a red flag. Use plain language and hit the key points of who you serve and how.
• Line 2 (NTEE Code): The form asks for an NTEE code, which is a three-character code that classifies your organization’s primary type of work (used by the IRS and charities for categorization). You’ll choose one from a list (the instructions provide a list of common codes like “B20” for elementary education, “D20” for animal rescue, etc.).
  • Pick the code that best matches your main mission. It’s not critical to be perfect, but it should be reasonably accurate. For instance, if you’re a food bank, you might choose “K31” (Food Banks & Pantries).
  • This is mainly for statistical purposes; it doesn’t affect your qualification. But it’s required to fill in.
• Lines 3, 4, 5… (Yes/No Activity Questions): Form 1023-EZ will present a series of specific questions about your planned activities. You must answer each Yes or No. These questions cover potential areas of complexity. Let’s outline the typical ones (the exact numbering might vary, but generally):
  • Operate Abroad: Do you or will you engage in activities or provide grants internationally? (E.g., sending money or doing work in foreign countries.) Answer yes if you plan operations outside the U.S. (This doesn’t disqualify you; it just notes a complexity.)
  • Provide Assistance to Individuals: Do you provide financial assistance, grants, or services to individuals (rather than broadly to a charitable class)? For example, if your charity gives scholarships or pays bills for people in need, that’s a yes. (Again, allowed, but they take note of private benefit concerns.)
  • Affiliations or Successors: Are you the successor to or affiliated with another nonprofit or for-profit? If your organization took over for one that shut down, or you’re controlled by another entity, you’d say yes. (Most new stand-alone nonprofits answer no.)
  • Donor-Advised Funds: Do you accept contributions earmarked for a specific individual (a donor-advised fund scenario)? Typically no, unless you’re explicitly setting up a fund where donors recommend grants.
  • Loans or Deals with Insiders: Do you have any business dealings with officers, directors, or their families? For instance, will the nonprofit buy services from a board member’s company? If a director owns a side business that will be providing paid services to the nonprofit, that’s a “Yes.” (This flags potential conflicts of interest for IRS oversight.)
  • Compensation to Officers/Directors: Do you pay (or plan to pay) any compensation to your officers, directors, or trustees? If your board members or officers will receive salaries, stipends, or consulting fees, answer yes. Many small charities have all-volunteer boards (so “No” in those cases), but a nonprofit might have a paid executive director who is also a board member, etc. It’s not forbidden to pay reasonable compensation; they just want to know.
  • Other Activities: There could be a catch-all asking if you conduct any other significant activities not already covered that might be outside typical charitable work. If everything you do is covered in your mission description, you’d likely say no.
  Remember, answering “Yes” on these doesn’t mean you’re ineligible. It means your application might get a closer look, or at least the IRS has it on record for later. Answer honestly. It’s far better to disclose (for example) that you will pay your executive director a salary, than to hide it. The IRS expects charities to have administrative expenses; they just want to ensure no self-dealing or private benefit.
• Confirming Eligibility Checks: The form will also make you explicitly confirm the key eligibility criteria:
  • That your gross receipts are within the $50,000 limit, and
  • That your assets are within $250,000.
  There may be checkboxes or questions like: “Do you project that your annual gross receipts will not exceed $50,000 in each of the next 3 years?” and “Do you have $250,000 or less in total assets?” You must answer Yes to those to proceed. Answering “No” to either will stop your EZ application—because that means you’re not eligible and should use Form 1023.
• Not a Church/School/Hospital: Additionally, you will need to attest that you are NOT filing as one of the excluded entity types (church, school, hospital). Often this is a single declaration you agree to as part of the form’s attestations (it might not be a “line” to fill in, but rather a statement you acknowledge). Essentially: “I declare that this organization is not a church, hospital, or school as defined for purposes of Form 1023-EZ, and none of the other eligibility exclusions apply.” By proceeding, you confirm this.

Take your time with Part III’s questions. They might seem like a simple checklist, but they ensure you’ve covered all the nuances of your activities. If any “Yes” answer seems to raise complexity (like foreign activities or insider transactions), it doesn’t mean you can’t use 1023-EZ – it means you should be prepared if the IRS asks follow-up questions later. Also, consider if those complexities might warrant the long form anyway (for instance, significant foreign operations might be better detailed in a full application).

Before moving to Part IV, you’ve now told the IRS what you do and confirmed you’re playing by the rules (both eligibility and operationally).

Part IV – Foundation Classification

Every 501(c)(3) is classified either as a public charity or a private foundation. Public charities are the more common, typical nonprofits (funded by the general public or serving broad public interests). Private foundations usually have a narrower funding source (like a family endowment) and different rules. In Part IV, you must choose your foundation type.

The form will list several options (check the one that applies). Common options:

• 509(a)(1) Public Charity: This includes organizations that normally receive a substantial part of support from public sources. Most small/startup charities will tick this by default, especially if you plan on soliciting donations from the public or grants. Within 509(a)(1), there are sub-categories:
  • 170(b)(1)(A)(vi) Publicly Supported Charity: If you expect to receive at least one-third of your support from gifts, grants, contributions, or membership fees (broadly from the public), this is you. It’s the typical charity classification.
  • Also under 509(a)(1) are churches, schools, hospitals, etc., but since you confirmed you’re not those, you won’t choose those lines.
• 509(a)(2) Public Charity (Gross Receipts Test): If you will get a mix of donations and income from activities (like program service revenue, ticket sales, etc.), you might fall here. For example, a small theater group with ticket revenue and some donations might use 509(a)(2). It requires that not more than 1/3 of support comes from investment income and unrelated business, and over 1/3 from a combination of gifts and fees for charitable services.
• 509(a)(3) Supporting Organization: Not eligible for EZ. (So you won’t choose this on 1023-EZ at all.)
• Private Foundation: If you don’t meet one of the public charity tests above, you’ll be a private foundation by default. Typically, if you’re mostly funded by one family or a single donor (and don’t try to meet public support tests), you’d be a private foundation. Examples: a family foundation giving grants, or any charity that can’t meet the public support fractions over time.

On Form 1023-EZ, you likely have checkboxes to select the appropriate public charity status or private foundation status. You may only check one classification.

• If you anticipate fundraising broadly and meeting public support criteria, choose the appropriate public charity status (often the 170(b)(1)(A)(vi) option).
• If you know you’re essentially a private foundation (e.g. one donor funding everything), you can choose private foundation. (Yes, you can still use 1023-EZ as a private foundation if otherwise qualified; just remember you’ll have additional obligations like filing Form 990-PF each year, etc.)
• Important: If you choose a public charity status now and later fail the support test (after a few years), the IRS can reclassify you as a private foundation. That’s okay; it’s not permanent at startup. You’re just making the best guess for now.

Make sure the box you check aligns with reality:

• Most brand-new community charities will check the public charity box.
• If you’re unsure but plan to try for public support, it’s generally fine to claim 509(a)(1)/(a)(2).
• If you check a public charity box, be prepared to substantiate it in the future (via your Form 990 filings) or else convert to private foundation if support is too narrow.
• If you’re reinstating an automatically revoked charity (Part V scenario) and you had a prior classification, you should choose the same classification you had originally, unless you intentionally want to change it.

In short, Part IV is about how the IRS will treat you post-approval. Public charity status is preferable for most (less oversight and excise taxes than private foundations). Choose correctly, but don’t agonize too much – you can operate as whichever, just know the compliance differences.

Part V – Reinstatement After Automatic Revocation (only if applicable)

You only fill out Part V if your organization was previously recognized as 501(c)(3) but lost its exemption due to automatic revocation. Automatic revocation happens when an organization fails to file required Form 990/990-N for three consecutive years. If you’re a brand-new nonprofit, this section does not apply – skip to Part VI.

For those seeking reinstatement, Part V provides checkboxes related to Revenue Procedure 2014-11, which outlines how revoked orgs can get status back (sometimes retroactively).

There are two relevant sections typically:

• Line 1 (Section 4 of Rev. Proc. 2014-11): Check this if you are eligible for the streamlined retroactive reinstatement. Generally, you qualify if:
  • This is the first time your org was revoked.
  • You are filing for reinstatement within 15 months of the revocation letter (or later if you can show reasonable cause for the delay, but let’s keep it simple).
  • Your gross receipts were ≤ $50,000 in each of the years you missed (so you were small).
  By checking this, you are saying: “We want our exemption back-dated to when it was revoked, and we meet the conditions of section 4.” If approved, the IRS will treat you as if you never lost your status (important for donation deductibility continuity).
• Line 2 (Section 7 of Rev. Proc. 2014-11): Check this if you do not qualify for retroactive reinstatement or are applying more than 15 months after revocation, and you’re accepting reinstatement only from the postmark date of this application. Essentially, you’re saying: “I know we can’t get retroactive, just give us exemption starting now.” By checking this, you agree your new effective date will be when you file this 1023-EZ (not the original date of formation).

For example, suppose you had a small charity, forgot to file 990-Ns for 2018, 2019, 2020, got auto-revoked in 2021, and now in 2023 you want to reinstate. If within the window, you’d check the Section 4 box to get retroactive reinstatement (meaning donors’ gifts during the gap become recognized as deductible). If you missed the window, you check Section 7, meaning you start fresh.

If you’re in this boat, ensure you’ve also taken care of any required late 990 filings or have an explanation, because even though EZ allows reinstatement, the IRS might ask for those delinquent filings separately.

Again, if Part V doesn’t apply, you won’t see these or you’ll leave them blank. For most users of Form 1023-EZ (new organizations), Part V is skipped.

Part VI – Signature and Attestation

The final step is the signature, which on an electronic form means checking an electronic signature box and typing the name and title of the signer. Here’s what to know:

• The form must be signed by an officer, director, or trustee who is listed in Part I, Line 8. Commonly, the President or Executive Director signs, but it could be any authorized officer. The key is they have authority to sign on behalf of the organization.
• By signing, this individual is certifying under penalty of perjury that the application is true, correct, and complete, and that they are authorized to submit it.
• There will be a checkbox for “penalties of perjury” acknowledgement. Check that, and enter the name and title, and the date.
• Once you sign and hit submit (and Pay.gov confirms payment), your Form 1023-EZ is officially filed.

Before signing, do a final review of the entire form. It’s easy to miss a typo or mistakenly answered question. Verify your eligibility one last time, because signing is also attesting “I have completed the eligibility worksheet and I am eligible to file this form.” If everything looks good, proceed to sign.

After submission, you’ll get a confirmation from Pay.gov (with a tracking number). The IRS will review your application in the coming days or weeks. As mentioned, many EZ applications get approved very quickly if no red flags. Some may get selected for a closer look; if so, the IRS will contact your listed person (Line 4) for additional info or clarification.

Congratulations – at this point, you’ve done everything needed to apply for federal tax-exempt status through Form 1023-EZ!

Example Scenarios: Form 1023-EZ in Action

To make this more concrete, here are three brief scenarios illustrating when Form 1023-EZ is used, and when it’s not appropriate:

Scenario	Outcome
Local Arts Charity (California): A small community theater group forms a nonprofit to produce plays. They expect $20k/year in donations and ticket sales, have 5 volunteer board members, and incorporate in California.	Uses Form 1023-EZ: They qualify as an eligible small organization. They ensure their Articles have the right clauses, fill out the 1023-EZ online, and get 501(c)(3) approval in a few weeks. This allows them to start fundraising with tax-deductible tickets and donations that same season.
New Church Start-up (Texas): A religious group of 30 people starts a church and wants tax-exempt status. They consider the 1023-EZ to save time.	Cannot Use EZ: Churches are explicitly ineligible for Form 1023-EZ. The church will need to file the full Form 1023 if they want an IRS determination letter (though churches aren’t required to apply, many do for donations). Attempting the EZ would lead to rejection. They opt for the long form to properly detail their doctrine, services, etc.
Ambitious Nonprofit (New York): Two entrepreneurs start a nonprofit tech training program. They are eligible size-wise now (first-year budget $40k), but have a pledge of $200k next year if things go well. They wonder if they should do the EZ now.	EZ with Caution or Long Form: Technically, in year one they qualify for Form 1023-EZ (under $50k). They could get fast approval and start operations. However, with a likely revenue jump, they risk overshooting the EZ criteria. If they’re confident in that $200k pledge, honesty dictates they might not meet the “next 3 years under $50k” condition – so the safer route is to use Form 1023. If they proceed with EZ (assuming uncertainty about the pledge), they should be prepared for closer IRS scrutiny down the line when their 990s show big growth, and ensure absolute compliance.

These scenarios show that Form 1023-EZ is usually a no-brainer for small, local initiatives that meet the criteria. In contrast, organizations like churches or those expecting rapid growth or complexity should default to the standard process. Always evaluate your unique situation.

Debunking Common Myths About Form 1023-EZ

There are a few myths and misconceptions floating around about the streamlined application. Let’s clear those up:

• Myth: “Form 1023-EZ is a loophole that gives you tax exemption with no oversight.”
  Reality: While the EZ process is simplified, you are still fully subject to IRS oversight. The IRS does random reviews and audits of EZ-approved charities. In fact, they’ve increased post-approval examinations to ensure organizations are following the rules. If you abuse the form or misrepresent facts, the IRS can revoke your status retroactively.
• Myth: “Any small nonprofit can just use the EZ – there’s no need to read the fine print.”
  Reality: Not true – many small nonprofits do not qualify for the EZ due to their purpose or structure. For example, a tiny private school or an upstart church with $40k budget is still disqualified from using 1023-EZ because of what it is, not its size. Always use the eligibility worksheet. Ignoring the details can lead to rejection and lost time.
• Myth: “If I file Form 1023-EZ, donors might not take us seriously compared to if we filed the long form.”
  Reality: The IRS determination letter you receive via Form 1023-EZ is identical in effect to that from the long form. Most donors and grantors only care that you have 501(c)(3) status, not which form you used. However, some very sophisticated donors (or foundations) might ask more questions about your programs if there wasn’t a detailed IRS review. In such cases, you can voluntarily share info (like a business plan or budget) to satisfy them. But there’s generally no “asterisk” on your status because you used the EZ.
• Myth: “We don’t even need to incorporate or have bylaws – the EZ form is so simple, anyone can do it overnight.”
  Reality: You absolutely need to properly form your organization (incorporate or create a trust) before applying. The simplicity of the form can lure folks into skipping essential steps like adopting bylaws, preparing conflict of interest policies, or ensuring the organizing document language is correct. The result can be a later catastrophe, such as losing exemption or having governance issues. The form is simple, but the foundation you lay (state incorporation, internal policies) must still be solid.
• Myth: “Once we get 501(c)(3) status via Form 1023-EZ, we’re done with compliance.”
  Reality: Receiving your tax exemption is just the beginning. You must file annual Form 990s or 990-N, even if you used the EZ to apply. If you fail to file for three years, guess what – automatic revocation (and you’d have to go through this process again). Additionally, you must comply with all operational restrictions of 501(c)(3) organizations (no private inurement, not too much lobbying, etc.). Form 1023-EZ doesn’t exempt you from any ongoing rules – it just made the entry easier.

Understanding these realities will help you use Form 1023-EZ wisely without falling for hearsay. When in doubt, consult reputable sources or professional advisors rather than rumors.

After IRS Approval: Federal and State Compliance (California, Texas, New York)

Getting your IRS determination letter is a huge milestone – but there’s more to do, especially at the state level. Federal 501(c)(3) status applies nationwide for federal tax purposes (and is a prerequisite for many state-level benefits). However, states have their own rules for taxes and charitable solicitation. Let’s highlight what comes next in general, then specifics for California, Texas, and New York:

Federal Ongoing Compliance: Once approved, you’ll need to:

• File an annual return or notice with the IRS (Form 990, 990-EZ, or 990-N depending on your size). Most small EZ filers qualify for the 990-N e-Postcard (very short online notice) if revenues remain under $50k.
• Maintain proper records of your revenues, expenses, and activities. The IRS can ask for documentation in an audit.
• Adhere to 501(c)(3) regulations (no private benefit, no political campaigns, limited lobbying, etc.).
• If anything changes (like your name or address or mission significantly), update the IRS or reflect it in your 990.

Now, for state considerations:

California

In California, obtaining federal 501(c)(3) status is just step one:

• State Tax Exemption: California does not automatically recognize the IRS exemption. You need to apply to the California Franchise Tax Board (FTB) for state income tax exemption. The good news is California provides a form called FTB 3500A which is a short application if you already have your IRS determination letter. You submit 3500A with a copy of your IRS letter to get state tax-exempt status. (Without this, your nonprofit might technically owe CA franchise tax or minimum taxes, so don’t skip it.)
• Charitable Solicitation Registration: California charities must register with the Attorney General’s Registry of Charitable Trusts before soliciting donations. This is done by filing Form CT-1 (Initial Registration) along with your organizing documents and IRS letter, typically within 30 days of initially receiving assets. After that, you’ll file annual reports (Form RRF-1 and possibly copies of your 990) to the AG’s office.
• Corporate Filings: If you incorporated in CA, remember to file your Statement of Information with the Secretary of State as required (usually every two years for nonprofits).
• State-specific Governance: California has particular laws on governance (e.g., certain transaction approvals, audit requirements if revenue above $2M, etc.) – be aware as you grow.

Texas

Texas has some unique aspects:

• State Tax Exemption: Texas doesn’t have a state income tax on individuals, but it does have a franchise (margin) tax that can apply to corporations, and sales tax. As a nonprofit, you’ll want to secure exemption from these. You must apply to the Texas Comptroller’s Office for tax exemption. Typically, you fill out Form AP-204 (Texas Application for Exemption) and provide your IRS determination letter. Once approved, your nonprofit will be exempt from Texas franchise tax and can also get a sales tax exemption on purchases for your exempt purpose.
• No General Charitable Registration: Texas, unlike many states, currently doesn’t require a general charity solicitation registration with the state. (There are some specific cases like public safety organizations needing to register, but no broad charity registry as in CA or NY.) However, truth-in-fundraising laws still apply.
• Corporate Notice: If you incorporated in Texas, ensure you stay in good standing with the Texas Secretary of State (file any periodic reports, and maintain a registered agent).
• Local Taxes: In Texas, you might also seek exemption from local property taxes if you own property and meet certain criteria (like being a religious org, school, etc., there are specific provisions).

New York

New York has a robust regulatory environment for nonprofits:

• State Tax Exemption: For New York State corporate taxes, you should file Form CT-247 (Application for Exemption from Corporation Franchise Taxes) with the NY Department of Taxation and Finance. Attach your IRS 501(c)(3) letter. This, if approved, means your corporation won’t be subject to NY corporate income/franchise tax (assuming you’re operating as a nonprofit should).
• Sales Tax Exemption: To avoid paying NY sales tax on purchases for your nonprofit, you must apply for a Sales Tax Exemption Certificate. This involves submitting Form ST-119.2 to the Tax Department. If approved, you get Form ST-119, which you can present to vendors to not pay sales tax.
• Charity Registration: Most nonprofits active in New York must register with the New York Charities Bureau (part of the Attorney General’s Office) before soliciting donations. The initial form is CHAR410 (Registration Statement for Charitable Organizations) along with your founding documents and IRS letter. Annual financial reporting (CHAR500, which often includes attaching your IRS 990) is then required. Some very small or certain religious organizations might be exempt from registering, but most 501(c)(3)s are required to.
• New York Incorporation: If you formed a New York nonprofit corporation, you likely had to get AG or Education Dept. consent for certain purpose types during the incorporation process. Post-IRS approval, ensure you remain compliant with any state consent conditions (like if you’re a NY nonprofit that said it would seek IRS status, they’ll expect you to have done so).

Major Reminder: The above state steps are in addition to your IRS obligations. Getting 501(c)(3) status is wonderful, but don’t overlook state law:

• Some states automatically respect federal exemption for income tax (others require a form, as we saw).
• Almost all states have some form of charitable solicitation law – if you’ll fundraise outside your home state, you might need to register in those other states too (there’s a multistate registration form for that).
• If you expand operations or open offices in other states, you may need to register there as a foreign nonprofit.

Staying in compliance federally and in your state ensures you retain your exemption and good standing. Many new charities trip up by celebrating the IRS letter and forgetting to file something locally – leading to penalties or loss of state-level privileges. Don’t let that happen to you.

Common Mistakes to Avoid

Filing Form 1023-EZ may be easier than the long form, but there are still plenty of pitfalls. Here are common mistakes and how to avoid them:

• Skipping the Eligibility Check: The #1 blunder is not carefully reviewing the eligibility rules. If you submit the EZ form while ineligible (say, you’re actually a private school or you expect high revenue), the IRS will reject your application outright. Always complete the worksheet and be truthful with yourself. It’s better to take a bit more time with Form 1023 than to be rejected and start over.
• Not Incorporating or Organizing Properly First: Some people mistakenly try to fill out Form 1023-EZ for a “nonprofit” that isn’t actually formed yet. Remember, you need an entity (with an EIN and organizing documents) before applying. If you haven’t filed your Articles of Incorporation or executed the trust document and gotten back any necessary state approvals, do that first. The IRS needs the formation date and jurisdiction, and you attested to having the organizing document.
• Organizing Document Lacks Required Clauses: As discussed in Part II, if your Articles of Incorporation don’t include a 501(c)(3) purpose clause and a proper dissolution clause, you’re on shaky ground. Many DIY incorporators or ill-informed attorneys miss this. The IRS might approve your EZ application based on your attestation, but if your articles are deficient, that status could be jeopardized upon examination. It’s a mistake to think “The form didn’t ask for attachments, so it must not matter.” It does matter – fix your founding paperwork now, not later.
• Inconsistency in Information: Ensure that names, dates, and numbers are consistent across your documents, the EIN letter, and the application. For example, if your nonprofit’s name is The Friends of City Park, Inc., don’t put Friends of City Park on the form dropping “The” and “Inc.” – match exactly. If your EIN letter has a different address, update it or use that address on the form (you can change it later). Little inconsistencies can cause confusion or delays.
• Too Vague Mission Description: That 250-character description in Part III is small, but don’t waste it. A mistake is to copy-paste a generic purpose like “to benefit the community” without specifics. The IRS might still approve you, but you lose a chance to clearly establish your case. Worse, if you’re randomly picked for further review, a vague mission could invite follow-up questions. Clearly state what you actually do.
• Assuming “Nonprofit” = 501(c)(3) Automatically: Some founders think that once they form a nonprofit corporation at the state level, they’re all set – and they either delay applying or don’t apply at all, continuing to operate and even fundraise. This is dangerous: until the IRS approves you, donations are not tax-deductible (unless you later get retroactive reinstatement). One should apply as soon as reasonably ready. Using the EZ form definitely helps speed this up, so don’t procrastinate or operate for years unrecognized.
• Failing to Plan for Ongoing 990 Filing: As soon as you have your exemption, mark your calendar for the annual IRS filing requirement. A common mistake is to forget those tiny 990-N e-Postcards for three years and get automatically revoked. It happens more often than you’d think to EZ filers because their operations are small and informal. No matter how small you are, put a reminder in every year to file the 990-N (if under $50k) or 990-EZ/990 if above. It’s free and takes minutes to file the e-Postcard.
• Ignoring State Compliance: We highlighted state registrations above – failing to do those is a big mistake. For instance, if you’re in California and forget to send Form 3500A, your corporation might owe California minimum franchise tax ($800) each year unnecessarily, or you might get penalties for soliciting funds without registering with the AG. Similarly in New York, not registering with the Charities Bureau can lead to fines or the inability to fundraise legally. Don’t let the victory at the IRS lull you into skipping state paperwork.
• No Bylaws or Poor Governance Practices: While bylaws are not required by the IRS in the application, not having them is a mistake. Strong bylaws and conflict of interest policies help your board govern properly and avoid trouble (like conflicts of interest, financial mismanagement). Many EZ filers are small groups of friends – great, but put things in writing and follow governance best practices. The IRS expects you to have, for example, a conflict of interest policy (the long form asks for one). They didn’t ask on EZ, but that doesn’t mean you shouldn’t have it. Lacking basic governance documents can lead to internal issues and, if examined, the IRS could question whether you’re operating for public interest.
• Overlooking Required Schedules on Long Form (if mistakenly on EZ): This is specific: sometimes people start an EZ but realize mid-way they shouldn’t – like a small credit counseling org trying EZ, not allowed. Or they complete EZ and later IRS finds they shouldn’t have. That’s a big waste. If you are in a gray area, don’t try to shoehorn into EZ. Use the correct process.
• Not Saving a Copy of Your Submission: Pay.gov allows you to print your completed Form 1023-EZ before submitting. Always save a PDF or printout of exactly what you submitted. It might be needed for reference (like when you do state filings or if a question arises later). It’s surprising how often people submit online forms and then forget what they put.

Avoiding these pitfalls will smooth your journey. When in doubt, consult the IRS instructions (they’re more readable than you expect) or seek professional advice. Double-check everything before you sign and pay. A little diligence upfront prevents big headaches down the road.

FAQs – Frequently Asked Questions about Form 1023-EZ

Can any nonprofit just file Form 1023-EZ?
No. Only small U.S.-based nonprofits meeting strict eligibility criteria (≤$50k revenue, ≤$250k assets, not a church/school/hospital, etc.) can use Form 1023-EZ.

Is Form 1023-EZ approval as good as regular 501(c)(3) approval?
Yes. An IRS determination letter from Form 1023-EZ confers the same 501(c)(3) status. The difference is in the application process, not the end status.

How long does it take to get approved with Form 1023-EZ?
Often about 2–4 weeks. The IRS processes most 1023-EZ applications very quickly (80% within around 22 days). Complex cases or random reviews can take a bit longer.

What is the user fee for Form 1023-EZ?
$275, paid online at the time of submission. It’s non-refundable, even if your application is denied or rejected, so ensure you qualify and complete the form correctly.

Do I need a lawyer to fill out Form 1023-EZ?
Not necessarily. Many small organizations successfully DIY the 1023-EZ thanks to its simplicity. However, consulting a nonprofit attorney or expert can help, especially to confirm eligibility and review organizing documents.

Can I file Form 1023-EZ before I have my EIN or incorporation done?
No. You must have an EIN and be legally formed (incorporated or organized as a trust/association) before applying. The form asks for your formation date, state, and EIN.

What if I submit Form 1023-EZ and later realize I was not eligible?
The IRS will likely catch ineligibility and reject your application. You’ll receive a rejection letter explaining why. You won’t get the $275 back, and you’ll need to apply again using the correct Form 1023.

Can we start fundraising as soon as we submit Form 1023-EZ?
You can solicit funds, but be careful: donations are only tax-deductible once you have 501(c)(3) status. If you file within 27 months of formation, the approval (when granted) is retroactive to formation – meaning donations in that interim become deductible. It’s wise to communicate “pending 501(c)(3) approval” to donors until you get the determination letter.

Do we need to send in our bylaws or bank statements with the EZ form?
No attachments are required with Form 1023-EZ. It’s all attestations. However, you should have those documents internally. The IRS could request supporting materials during a review or later examination.

What happens after we’re approved?
You’ll receive an IRS determination letter (often electronically). Then you must comply with annual filing requirements (Form 990 series) and maintain your operations within 501(c)(3) rules. Also, follow up on any necessary state-level filings (for tax exemption, fundraising registration, etc., as discussed).

Can a private foundation use Form 1023-EZ?
Yes, if it meets the size criteria and isn’t otherwise barred. Many private foundations are started by families with over $250k in assets, which would make them ineligible for EZ. But a very small family foundation under the thresholds could technically use 1023-EZ (and then be classified as a private foundation in Part IV).

What if our Form 1023-EZ is denied by the IRS?
Denials are rare for EZ if you truly qualify, but it can happen (for example, if the IRS believes your activities aren’t actually charitable). If denied, the letter will explain reasons. You can appeal the decision or reapply with a full Form 1023 addressing the issues. It’s better to prevent denial by ensuring your purposes and description clearly show a charitable nature.