For information on the status of your
filing, to get help with an exemption application, tax return,
advance ruling period or to order forms, you may call the IRS
toll-free at (877) 829-5500 or look online for the IRS's Tax
Information for Charities and Nonprofits site.
1. Apply for an Employer Identification Number by filing IRS
Form SS-4 with the Internal Revenue Service.
2. Prepare IRS Form 1023 (Application for Recognition of Exemption
under Section 501(c)(3) of the Internal Revenue Code) and prepare
a check payable to Internal Revenue Service for applicable filing
fee ($300 or $750).
3. Assemble information to be set forth in IRS Form 1023, including:
- a narrative description of organization's past, present
and planned activities
- organization's sources of current and proposed financial
support
- its actual and planned fundraising program
- financial information: if the organization is newly created,
current year and the two following years' projected budgets;
otherwise, budgets for the current year and three previous
years
4. If requesting an advance ruling, prepare two IRS Forms 872-C
(Consent Fixing Period of Limitation Upon Assessment of Tax
under Section 4940 of the Internal Revenue Code).
5. Adopt a resolution authorizing filing for tax exemption and
all documents related to application, and authorize an officer
or attorney-in-fact to sign the application. If attorney-in-fact
is authorized, you must prepare IRS Form 2848 (Power of Attorney
and Declaration of Representative).
6. Obtain a conformed copy of Certificate of Incorporation and
By-laws if any have been adopted.
7. File application with IRS Exempt Organizations Division.
To order forms, call (800) 829-3676. Application should include:
- IRS Form 1023
- 2 IRS Forms 872-C (if requesting advance ruling)
- IRS Form 8718 and check payable to IRS in appropriate
filing fee amount
- Conformed copy of Certificate of Incorporation and By-laws
- IRS Form 2848 if attorney-in-fact is representing organization
8. A request for 501(c)(3) status may take six months or more
to be granted. In the meantime, you must indicate to interested
parties: "Application for 501(c)(3) tax exemption pending."
9. If your application is granted, you may apply to the Illinois
Department of Revenue (312/814-3142) for state tax exemption.
If your application is rejected, you must inform past, present
and future donors of the rejection in order to protect them
from tax liability.
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