How To Start a 501(c)(3)

Labyrinth, Inc. does not help start up new charities. We help existing nonprofits, register in various states so that they can solicit contributions from donors in these states. If you need help starting a nonprofit (i.e. incorporating or getting 501(c)(3) status) we suggest hiring The Marker Law Firm.

To apply for recognition by the IRS of exempt status as an organization
described in § 501(c)(3) of the Code, use
Package 1023, Application for
Recognition of Exemption
. The application must be complete and accompanied
by the appropriate user fee. The organization should also request an
employer identification number using
Form SS-4, Application
for Employer Identification Number
, (even if the organization does not have any
employees). For more information, download
Publication 557, Tax-Exempt
Status for Your Organization

Except for churches, their integrated auxiliaries, and public charities whose annual gross receipts are normally less than $5,000, organizations will not be treated as described in § 501(c)(3) unless they notify the IRS that they are applying for recognition of § 501(c)(3) status. Organizations that are described in § 501(c)(3) but do not so notify the Service within 15 months of their creation will be treated as Private Foundations. An organization described in § 501(c)(3) will be a private foundation unless it meets the criteria set forth in § 509(a).

A charitable organization must make available for public inspection its approved application for recognition of exemption with all supporting documents and its last three annual information returns. Pursuant to the Taxpayer Bill of Rights 2, the organization is required to provide copies of these documents upon request without charge (other than a reasonable fee for reproduction and copying costs). Penalties are provided for failure to comply with these requirements. For more information, see the final regulations published in
Internal Revenue Bulletin 1999-17.

While you can apply for 501(c)(3) tax-exempt status yourself, you can also use a firm to help you get your IRS tax-exempt status. One good option is The Marker Law Firm., who can help you file your 1023 form and help your organization become tax-exempt..