Posts tagged ‘IRS’

Filing 501c3 Now Made Easier

Yeah!!!

There might finally be some relief in the backlog of 60,000+ applications the IRS has on hold as they attempt to review and process new applications for tax- exempt status under Section 501(c)3 codes. Their site indicates they are just processing applications submitted in October 2013 – a 9 month gap in a process that should take 6 to 8 weeks.

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In a July 1,2014 Internal Revenue Service press release they introduced a new, shorter application form, Form 1023-EZ, to help small charities apply for 501(c)(3) tax-exempt status more easily. Most organizations with annual gross receipts of $50,000 or less and assets of $250,000 or less are eligible.

Over 4 years ago IRS indicated on their website that a new online application process was to be released soon. Then that announcement disappeared until now. The change will allow the IRS to speed the approval process for smaller groups and free up resources to review applications from larger, more complex organizations while reducing the application backlog.

None of the basic eligibility requirements have been altered and the instructions include an eligibility checklist that organizations must complete before filing the form. What has changed is the former option of filing as an organization with less than $10,000 gross earning and completing a 26-page application form. Now would-be nonprofits with gross revenue of $50,000 or less and assets of $250,000 or less are now eligible to file a three-page online application.

Some nonprofits, such as hospitals, colleges, and universities, would not be eligible to use the new form, but the IRS predicts, about 70 percent of new applicants,  will be eligible for the short form.

What Does This Mean?

Even though an easier process has been launched, individuals should still first assess whether or not a new organization is needed.  Does an organization already exist that serves your passion, can you devote time and resources to support them? There are thousands of organizations in competition for similar funding resources and it is hard work.

However if creating a new one is the best solution, to move forward understand the process of starting an organization, and more important what it takes to run and create one that is sustainable for the long term. Are you knowledgeable and prepared for the actual cost to launch a solid organizational foundation? Is there a support system in place and consistently developing?

Great News! There is help available!

Make your passion a reality. Fortunately you do not have to embark on this process alone. For more information and/or support to launch your nonprofit, Dr. Victoria Boyd can assemble and submit all of the required documentation . Plus guide you through the process of setting up operational systems, website launch, program development, funding strategies, board development, and much more. At www.theGalaxyGrouplv.com get your free copy of 10 Tips for Effective Nonprofit Management.

Dr. Victoria Boyd has worked in the nonprofit sector for over 35 years internally and externally. Currently an instructor Nonprofit Management at UNLV, she also launched The Philantrepreneur which offers a digital journal, radio show and interactive website.

GALAXY GroupThe Philantrepreneur

 

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