We offer a complete suite of services for non-profit organizations: 1) preparation of 1023 & 1024 application packages, 2) preparation of the organization’s annual 990 or 990EZ returns, 3) and payroll service. For a startup organization, we can assist you in preparing the articles of incorporation and bylaws. We also provide consulting and seminar services to churches on establishing a budget, financial record keeping, and payroll reporting requirements
Applications for Recognition of Tax Exemption – Form 1023
With a couple of exceptions, any organization that is seeking to qualify as a section 501 (c)(3) organization must file a Form 1023. To qualify for a federal non-profit tax exemption, one of the following purposes must be satisfied:
In preparing the 1023 application package, the applicant will be asked to provide extensive information including:
- Provide a detailed narrative description of all the activities of the organization –past, present, and planned,
- Provide thorough documentation on the organization’s sources of financial support,
- Describe the organization’s fundraising program, both actual and planned, and
- Complete a statement of revenue and expenses for the current tax year and for each of the 3 years immediately before it. Organizations in existence for less than 1 year, must also provide proposed budgets for the 2 years following the current year.
There are a number of benefits to organizations receiving section 501 (c)(3) status such as:
- Public recognition of tax-exempt status.
- Assurance to donors of deductibility of contributions.
- Exemption from certain state taxes.
- Exemption from certain Federal excise taxes, etc.
We can assist newly-formed and already-established organizations in completing the 1023 application packet. The organizational applicant should already have completed the articles of incorporation and by-laws. For newly-formed organizations, completing the necessary financial statements is usually the most challenging activity. The IRS scrutinizes these statements very closely and will often reject 1023 applications based on insufficient financial data. Hence, we tend to devote more time to the client in preparing this section than to any other section of the application.