Applying for 501(c)(3) Nonprofit Tax Exemption Status
Section 501(c) of the United States Internal Revenue Code addresses various business organizations that are exempt from federal taxation. Specifically, section 501(c)(3), the most common tax exempt organization, affords tax exempt status to corporations that are organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purpose, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals… This is called the nonprofit tax exemption.
Any organization seeking 501(c)(3) status must apply with the IRS. A standard application package for a nonprofit corporation seeking 501(c)(3) exemption status typically includes:
In addition to the required documents, the IRS may require additional information necessary to clarify the nature of the corporation, including a suggested new Conflicts of Interest Policy.