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Steps to form a 501 C3 Organization

First, does the Organization have an Appropriate Legal Form? The organization must be organized as a trust, a corporation, or an association.
When you incorporate the organization’s articles it must contain certain provisions.  In addition, an organization's assets must be permanently dedicated to an exempt purpose.  This means that if an organization dissolves, its assets must be distributed for an exempt purpose described in section 501(c)(3), to the federal government, to a state or the local government for a public purpose.  To establish that an organization's assets will be permanently dedicated to an exempt purpose, the organizing document should contain a provision insuring their distribution for an exempt purpose if the organization dissolves.
Second, the organization must apply for a EIN (Employer Identification Number) You can apply for an EIN online at or by completing Form SS-4. You may also obtain an EIN via telephone, by calling 1-800-829-4933.
Next, The organization must have an exempt purpose, it must be charitable, religious, scientific, literary, and/or nonprofit organizations.
Has the organization existed for at least three tax years?
If not, then new organizations must give financial statements for the current year and proposed budgets for the next two years, including a detailed breakdown of revenue and expenses. A section 501(c)(3) organization provides this information on Part IX, Form 1023 which will be discussed below.
Once the above three are complete, now you must complete and sign the correct application and attached exact copies of the organization's organizing documents .
To be recognized as exempt, an organization must submit a completed, signed, and dated application. If an organization is seeking recognition of exemption under section 501(c)(3) of the Code, it must complete and file Form 1023, Application for Recognition of Exemption.
Please note. Organizations described in section 501(c)(3) are commonly referred to as charitable organizations.
The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual.
Please note. A user fee is required for applications. User fees are discussed in part XI on Form 1023.
If you have completed everything above, then you are now ready to submit the organization's completed application to the following address:
Internal Revenue Service
P.O. Box 12192
Covington, KY 41012-0192
Applications shipped by express mail or delivery service should be sent to:
Internal Revenue Service
201 W. River center Blvd.
Attn: Extracting Stop 312
Covington, Ky. 41011

14 Comments to Steps to form a 501 C3 Organization:

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tax advisory services on Wednesday, July 17, 2013 2:30 AM
Thanks for sharing the information. It is a great help and everyone must read this post to have better knowledge of recent tax obligations.
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Virtual-Offices-London on Wednesday, August 14, 2013 3:13 AM
I agree with you that the information shared by blogger regarding the tax obligations for people or for an organization help the people.

maillot pays bas 2013 on Monday, July 22, 2013 3:54 AM
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Community Relations NYC on Wednesday, July 31, 2013 2:54 AM
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These tips and advices are really very much effective to form a 501 C3 Organization. Keep it up with sharing such useful information with us. Thanks for the post.
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San Diego Business Lawyer on Tuesday, February 25, 2014 8:38 AM
These are the great working steps to form a 501 C3 Organization.
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ukbestessays on Friday, July 21, 2017 3:55 PM
It seems that small and large companies are working at different places. We can find online sites of these organizations also. It is compulsory for organizations to pay tax. Organizations must be registered and these can pay tax with specific amount.
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Mani on Thursday, May 17, 2018 5:50 AM
Thanks for sharing
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christian louboutin outlet on Thursday, July 05, 2018 1:22 AM
In addition, an organization's assets must be permanently dedicated to an exempt purpose.
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