Instructions for Form 1023 (Rev. June 2006)

Transcription

1 Instructions for Form 1023 (Rev. June 2006) Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code Department of the Treasury Internal Revenue Service Section references are to the Internal Contents Page Tax Map: an electronic research tool Revenue Code unless otherwise noted. Schedule G. Successors to and finding aid. Contents Page Other Organizations Tax Law frequently asked questions What s New... 1 Schedule H. Organizations (FAQs). How to Get Tax Forms and Providing Scholarships, Tax Topics from the IRS telephone Publications... 1 Fellowships, Educational response system. Overview of Section 501(c)(3) Loans, or Other Educational Fill-in, print, and save features for most Organizations... 1 Grants to Individuals and tax forms. Private Foundations Internal Revenue Bulletins. General Instructions Requesting Advance Toll-free and technical support. Purpose of Form... 3 Approval of Individual Grant The CD is released twice during the Obtaining Tax-Exempt Status Procedures year. What to File... 3 Appendix A. Sample Conflict of o The first release will ship the When to File... 4 Interest Policy beginning of January Where to File... 4 Appendix B. States with o The final release will ship the Filing Assistance... 4 Statutory Provisions Satisfying beginning of March Signature Requirements... 4 the Requirements of Internal Representation... 5 Purchase the CD from National Revenue Code Section 508(e) Public Inspection... 5 Technical Information Service at Appendix C. Glossary of Terms Foreign Organizations in gov/cdorders $25 (no handling fee) or call Index CDFORMS ( ) General... 5 toll-free to buy the CD for $25 (plus a $5 Specific Instructions handling fee). Price is subject to change. Part I. Identification of Applicant... 6 What s New By Phone and In Person Part II. Organizational The user fee for the initial application for recognition of exemption under IRC You can order forms and publications by Structure... 6 Section 501(c)(3) has been increased. calling TAX-FORM Part III. Required Provisions in Part XI of Form 1023 has been revised to ( ). You can also get most Your Organizing Document reflect the new fee. See Rev. Proc. forms and publications at your local IRS Part IV. Narrative Description , I.R.B. 245 for more office. of Your Activities... 8 information about user fees that may be Part V. Compensation and applicable to tax-exempt organizations. Other Financial Overview of Section Arrangements With Your Officers, Directors, Trustees, 501(c)(3) Organizations How To Get Forms and Employees, and Independent Publications Who Is Eligible for Section Contractors... 8 Part VI. Your Members and 501(c)(3) Status? Other Individuals, and Personal Computer Organizations organized and operated Organizations That Receive You can access the IRS website 24 hours exclusively for religious, charitable, Benefits From You... 9 a day, 7 days a week at to: scientific, testing for public safety, literary, Part VII. Your History... 9 Order IRS products online. or educational purposes, or to foster Download forms, instructions, and national or international amateur sports Part VIII. Your Specific publications. competition, or for the prevention of Activities... 9 Get answers to frequently asked tax cruelty to children or animals are eligible Part IX. Financial Data questions. to file Form 1023 to obtain recognition of Part X. Public Charity Status Search publications online by topic or exemption from federal income tax under Part XI. User Fee Information keyword. section 501(c)(3) of the Internal Revenue Schedule A. Churches Code. Send us comments or request help by Schedule B. Schools, . Form 1023 not necessary. The Colleges, and Universities Sign up to receive local and national following types of organizations may be Schedule C. Hospitals and tax news by . considered tax exempt under section Medical Research 501(c)(3) even if they do not file Form Organizations CD-ROM Schedule D. Section 509(a)(3) You can order Publication 1796, IRS Tax Churches, including synagogues, Supporting Organizations Products CD, and obtain: temples, and mosques. Schedule E. Organizations Not Current-year forms, instructions, and Integrated auxiliaries of churches and Filing Form 1023 Within 27 publications. conventions or associations of churches. Months of Formation Prior-year forms, instructions, and Any organization that has gross Schedule F. Homes for the publications. receipts in each taxable year of normally Elderly or Handicapped and Bonus: Historical Tax Products DVD not more than $5,000. Low-Income Housing Ships with the final release. Cat. No z

2 Even though the above organizations substantial amount limit, see Publication Public charities. The following 501(c)(3) are not required to file Form 1023 to be 557, Tax-Exempt Status for Your organizations are classified as public tax exempt, these organizations may Organization. charities. choose to file Form 1023 in order to For this purpose, legislation includes Churches. receive a determination letter that action by Congress, a state legislature, a Schools. recognizes their section 501(c)(3) status local council, or a similar governing body, Hospitals, medical research and specifies whether contributions to with respect to acts, bills, resolutions or organizations, and cooperative hospital them are tax deductible. similar items (such as legislative service organizations. confirmation of appointive offices). Organizations that receive substantial Qualification of a Section 501(c)(3) Legislation also includes action by the support from grants, governmental units, Organization public in a referendum, ballot initiative, and/or contributions from the general There are two key requirements for an constitutional amendment, or similar public. organization to be exempt from federal procedure. Legislation generally does not Organizations that normally receive income tax under section 501(c)(3). A include actions by executive, judicial, or more than one-third of their support from 501(c)(3) organization must be organized administrative bodies. contributions, membership fees, and and operated exclusively for one or more gross receipts from activities related to exempt purposes. Organizations may involve themselves their exempt functions, and not more than in issues of public policy without being Organized. An organization must be one-third of their support from gross engaged in legislative activity. For organized as a corporation (including a investment income and net unrelated example, organizations may conduct limited liability company), trust, or business income. educational meetings, prepare and unincorporated association. The Organizations that support other public distribute educational materials, or organizing document (articles of charities. otherwise consider public policy issues. incorporation if you are a corporation, Similarly, an organization may appear If an organization requests public articles of organization if you are a limited before a governmental body to offer charity classification based on receiving liability company, articles of association or testimony about a decision that may substantial public support, it must constitution if you are an association, or affect the organization s existence. continue to seek significant and trust agreement or declaration of trust if diversified public support contributions in you are a trust) must limit the A private foundation is not allowed later years. A new organization that organization s purpose(s) and TIP to influence legislation. cannot show it will receive enough public permanently dedicate its assets to support may request an advance ruling of exempt purposes. Political campaign intervention. All its status. After 5 years, it must file Form Operated. An organization must be 501(c)(3) organizations are absolutely 8734, Support Schedule for Advance operated to further one or more of the prohibited from directly or indirectly Ruling Period, showing its sources of exempt purposes stated in its organizing participating or intervening in any political support during the advance ruling period. document. Certain other activities are campaign on behalf of (or in opposition If the organization does not meet the prohibited or restricted, including, but not to) any candidate for elective public office. public support requirements during the limited to, the following activities. A Non-partisan voter education activities 5-year advance ruling period, it could be 501(c)(3) organization must: (including public forums and voter reclassified as a private foundation. a. Absolutely refrain from participating education guides) are permitted. Private foundation. A 501(c)(3) in the political campaigns of Similarly, non-partisan activities to organization that cannot meet one of the candidates for local, state, or federal encourage people to participate in the specific exceptions to be classified as a office. electoral process, such as voter public charity is a private foundation. b. Absolutely ensure that its assets registration and get-out-the-vote drives, Classification as a private and earnings do not unjustly enrich are not prohibited political campaign TIP foundation has nothing to do with board members, officers, key activity. However, voter education or the name of the organization. management employees, or other registration activities that (a) favor one There are many organizations that insiders. candidate over another, (b) oppose a include the word foundation in their c. Not further non-exempt purposes candidate in some manner, or (c) favor a names that are not private foundations (such as purposes that benefit private group of candidates, are prohibited. for tax purposes. interests) more than insubstantially. d. Not operate for the primary purpose Public Charities and Private Private operating foundations. A of conducting a trade or business that Foundations private foundation that lacks general is not related to its exempt purpose(s). Every organization that qualifies for public support but actively conducts e. Not engage in activities that are tax-exempt status under section 501(c)(3) exempt programs (as opposed to making illegal or violate fundamental public is further classified as either a public grants to other organizations to conduct policy. charity or a private foundation. For some exempt activities) may be treated as a f. Restrict its legislative activities. organizations, the primary distinction private operating foundation. Private between a public charity and a private operating foundations are subject to more foundation is an organization s source of favorable rules than other private Legislative activity. An organization financial support. foundations in terms of charitable does not qualify for section 501(c)(3) A public charity has a broad base of contribution deductions and attracting status if a substantial part of its activities support, while a private foundation grants from private foundations. In order is attempting to influence legislation. receives its support from a small number to be classified as a private operating Form Most public charities are of donors. This classification is important foundation, an organization must meet eligible to elect to make expenditures to because different tax rules apply to the certain support tests. influence legislation by filing Form 5768, Election/Revocation of Election by an operations of each entity. State Registration Requirements Eligible Section 501(c)(3) Organization To Deductibility of contributions to a Tax exemption under section 501(c)(3) is Make Expenditures To Influence private foundation is more limited than a matter of federal law. After receiving Legislation. By filing Form 5768, an contributions to a public charity. See federal tax exemption, you may also be eligible organization s legislative activities Publication 526, Charitable Contributions, required to register with one or more will be measured solely by an expenditure for more information on the deductibility of states to solicit for contributions or to limit rather than by the no substantial contributions. In addition, private obtain exemption from state taxes. The amount limit. For additional information foundations are subject to excise taxes National Association of State Charity on the expenditure limit or the no that are not imposed on public charities. Officials (NASCO) maintains a website -2- Instructions for Form 1023

3 that provides informational links to the total for each line on the financial Revenue Bulletin (I.R.B.) issued each various states for these purposes. It can statements. year). be accessed at For additional information on the user Purpose of Form fee, see Part XI. General Instructions Completed Form 1023 required for Group Exemption Section references are to the Internal section 501(c)(3) exemption. Form Form 1023 is not used to apply for a Revenue Code unless otherwise noted is filed by organizations to apply for group exemption. A group exemption is You and Us. Throughout these recognition of exemption from federal issued to a central organization that instructions and Form 1023, the terms income tax under section 501(c)(3). Upon recognizes on a group basis the you and your refer to the organization approval, we will issue a determination exemption of subordinate organizations that is applying for tax-exempt status. The letter that provides written assurance on whose behalf the central organization terms us and we refer to the Internal about the organization s tax-exempt has applied. See Publication 557 for Revenue Service. status, and its qualification to receive information on how to apply for a group tax-deductible charitable contributions. Definitions. Terms in bold type in Form exemption. Every organization qualifying for 1023 are defined throughout these exemption under section 501(c)(3) will Leaving a group exemption. If a instructions and in Appendix C. also be classified as either a public subordinate organization in an existing charity or a private foundation. group exemption wishes to apply for an Answers individual exemption, it should notify its Other organizations that may file parent organization of its intention to Answer items completely. Where a Yes Form Other organizations that leave the group ruling before filing Form or No reply is not requested, you may apply for tax-exempt status under section answer Not Applicable where 501(c)(3) by filing Form 1023 include appropriate. If you believe you have section 501(e) and (f) cooperative service previously answered the item, you may organizations, section 501(k) childcare What to File refer to your previous answer. organizations, and section 501(n) All applicants, unless otherwise noted, charitable risk pools. must complete Parts I through XI of Form Your answers must provide 1023, plus any required schedules and! sufficient detail about your past, Obtaining Tax-Exempt attachments. CAUTION present, and planned activities to prove that you are an exempt The following organizations must Status organization. We will not be able to complete additional schedules to Form To apply for tax-exempt status, file Form recognize you as tax exempt based on and pay the appropriate user fee. generalizations. Therefore, we need to Expedite Requests THEN you understand the specific activities you will IF your organization must file undertake to reach your charitable goals. is a(n)... Schedule... Financial data. Form 1023 asks you to We will only approve expedited processing of an application where a answer a series of questions and provide request is made in writing and contains a information to assist us in determining if compelling reason for processing the Church... A you meet the requirements for tax application ahead of others. School, College, or exemption under section 501(c)(3). One Circumstances generally warranting University... B of the key pieces of information requested expedited processing include: Hospital or Medical is financial data. This data, whether A grant to the applicant is pending and Research Organization.. C budgeted or actual, should be consistent the failure to secure the grant may have with other information presented in the an adverse impact on the organization s Section 509(a) Supporting application. ability to continue operations. Organization... D For example, if you are requesting The purpose of the newly created Organization Not Filing public charity status under one of the organization is to provide disaster relief to Form 1023 Within 27 public support tests, the financial data victims of emergencies such as flood and Months of Formation.... E should show contributions from the public hurricane. or receipts from providing exempt There have been undue delays in Home for the Elderly or services. Budgeted financial data should issuing a letter caused by problems within Handicapped and be prepared based upon your current the IRS. Low-Income Housing.... F plans. We recognize that the User Fee Successor to Other organization s actual financial results may The law requires payment of a user fee Organizations... G vary from the budgeted amounts. with each application. Submit the Organization Providing Past, present, and planned activities. appropriate user fee based on your Scholarships, Fellowships, Many items on Form 1023 are written in average annual gross receipts as Educational Loans, or the present tense; however, your answers indicated on Form Enclose Other Educational Grants should be based on your past, present, payment with your application. DO NOT to Individuals and Private and planned activities. STAPLE or otherwise attach your check Foundations Requesting Language and currency requirements. or money order to your application. Approval of Individual Prepare Form 1023 and attachments in You may pay your user fee with a Grant Procedures... H English. Provide an English translation if personal or certified check, bank check, the articles of organization or bylaws are or cashier s check. Processing your Assembly of Application in any other language. application will not be delayed by the form Package We may ask you to provide English of payment unless your check is returned To assist us in processing the application, translations of foreign language to us for insufficient funds. documents should be submitted in the publications you submit with your Form Generally, a user fee will be refunded following order only if we decline to issue a User fee enclosed but not attached to Report financial information in U.S. determination. Additional guidance the application form. dollars (specify the conversion rate used). regarding user fees is available in Rev. Form 1023 Checklist. Combine amounts from within and Proc , I.R.B. 245, or later Form 2848, Power of Attorney and outside the United States and report the revision (revised in the first Internal Declaration of Representative (if needed). Instructions for Form

4 Form 8821, Tax Information application, with all required information Publication 517, Social Security and Authorization (if needed). and user fee to: Other Information for Members of the Expedite request (if needed). Internal Revenue Service Clergy and Religious Workers Application (Form 1023, Checklist, and 201 West Rivercenter Blvd. Publication 526, Charitable Schedules A through H, as required). Attn: Extracting Stop 312 Contributions Organizing document. Covington, KY Publication 557, Tax-Exempt Status for Amendments to organizing document Your Organization in chronological order. Private Delivery Services Publication 598, Tax on Unrelated Bylaws or other rules of operation and In addition to the United States mail, you amendments. Business Income of Exempt can use certain private delivery services Documentation of nondiscriminatory Organizations designated by the IRS to meet the timely policy for schools, as required by Publication 1771, Charitable mailing as timely filing/paying rule for tax Schedule B. Contributions Substantiation and returns and payments. The most recent Form 5768, Election/Revocation of Disclosure Requirements list of designated private delivery services Election by an Eligible Section 501(c)(3) Publication 1828, Tax Guide for includes only the following: Organization To Make Expenditures To Churches and Religious Organizations DHL Express (DHL): DHL Same Day Influence Legislation (if filing). Service; DHL Next Day 10:30 AM; DHL Publication 3079, Gaming Publication All other attachments, including Next Day 12:00 PM; DHL Next Day 3:00 for Tax-Exempt Organizations explanations, financial data, and printed PM; and DHL 2nd Day Service. Publication 3833, Disaster Relief: materials or publications. Federal Express (FedEx): FedEx Providing Assistance through Charitable Priority Overnight, FedEx Standard Organizations Attachments Overnight, FedEx 2Day, FedEx Publication 4220, Applying for 501(c)(3) Use an attachment where there is International Priority, and FedEx Tax-Exempt Status insufficient space on the form for you to International First. legibly and accurately respond to a Publication 4221, Compliance Guide question. For any attachments submitted United Parcel Service (UPS): UPS Next for 501(c)(3) Tax-Exempt Organizations with your Form 1023: Day Air, UPS Next Day Air Saver, UPS Publication 78, Cumulative List of Use 8 2nd Day Air, UPS 2nd Day Air A.M., UPS 1 /2 x 11 inch paper. Organizations Described in Section Provide your name and Employer Worldwide Express Plus, and UPS 170(c) of the Internal Revenue Code of Identification Number (EIN) at the top of Worldwide Express (searchable online at each page. The private delivery service can tell eo) Identify the Part and line number to you how to get written proof of the mailing which the attachment relates. Philanthropic Research, Inc., aka date. GuideStar, a 501(c)(3) nonprofit Include any court decisions, rulings, organization, maintains information about opinions, or any other documents that will Filing Assistance specific section 501(c)(3) organizations assist us in processing your Form For help in completing this form or (searchable online at Generally, attachments in the form of general questions relating to an exempt tape, recordings or other electronic media organization, call the Exempt Signature Requirements are not acceptable unless accompanied Organization Customer Account Services by a transcript. toll free at You may also An officer, director, trustee, or other access information on our website at official who is authorized to sign for the Attachments must be in English. organization must sign Form 1023 at the end of Part XI. The signature must be When to File Listed below are a number of accompanied by the title or authority of If you file Form 1023 within 27 months publications that may be helpful to your the signer and the date. Please clearly after the end of the month in which you organization. print the accompanying information. were legally formed, and we approve the application, the legal date of formation will Figure 1. Table of Annual Returns be the effective date of your exempt status. Type of Annual Return Who Should File If you do not file Form 1023 within 27 months of formation, you may not qualify Form 990, Return of Organization Exempt Section 501(c)(3) public charities for exempt status before the date we receive Form The date considered from Income Tax to be the date we receive Form 1023 is Form 990-EZ, Short Form Return of Section 501(c)(3) public charities whose generally the postmark date. For Organization Exempt from Income Tax gross receipts during the year were less exceptions and special rules, including than $100,000 and total assets at the end automatic extensions, see Schedule E of of the year were less than $250,000 Form Schedule A (Form 990 or 990-EZ), Section 501(c)(3) public charities Where To File Organization Exempt under Section Send the completed Form (c)(3) application, with all required information, and the applicable Schedule B (Form 990, 990-EZ, or All section 501(c)(3) organizations user fee to: 990-PF), Schedule of Contributors Internal Revenue Service Form 990-PF, Return of Private Private foundations, including private P.O. Box 192 Foundation operating foundations Covington, KY Form 990-T, Exempt Organization Public charities and private foundations Business Income Tax Return that have gross unrelated business If you are using express mail or a delivery income of $1,000 or more service, send the completed Form Instructions for Form 1023

5 Representation You may also be required to the information or a copy of the TIP file other returns, such as information directly from you. Form Attach a completed Form employment tax returns or benefit 2848 if you want to authorize a An exempt organization may post the plan returns, which are not discussed representative to represent you regarding documents required to be available for here. your application. An individual authorized public inspection on its own website. The by Form 2848 may not sign the information return and exemption application unless that person is also an Public Inspection application materials must be posted officer, director, trustee, or other official exactly as filed with the IRS. Only the Information available for public who is authorized to sign the application. information that is not open for public inspection. If we approve exempt status inspection may be deleted. under section 501(c)(3), the following A centralized authorization file information will be open for public If an exempt organization posts the! (CAF) number is not required to inspection. documents on its website, it must provide CAUTION be listed on Form Your complete Form 1023 and any notice of the website address where the supporting documents. documents may be found, but it need not Form Form 8821 authorizes us to All correspondence between you and provide copies of the information. discuss your application with the person the IRS concerning Form 1023, including However, documents posted on an you have appointed. Form organization s website must still be made The letter we issue approving your available for public inspection without Form 8821 does not authorize your exemption. charge at its main office during regular appointee to advocate your position with Annual information returns (Forms 990, business hours. respect to the Federal tax laws; to execute waivers, consents, or closing 990-EZ, or 990-PF). Documents are not considered agreements; or to otherwise represent Schedule A, included with Forms 990 available for public inspection on a you before the IRS. If you want to or 990-EZ. website if the otherwise disclosable authorize an individual to represent you, Schedule B, included with Forms 990 information is edited or subject to editing use Form or 990-EZ, except the names and by a third party when posted. To date, the addresses of contributors and other IRS has not approved any third party After You Submit Form 1023 identifying information about contributors. websites for posting. Schedule B, included with Form We will acknowledge receiving your See Publication 557 for additional 990-PF, including names, addresses and application in writing. You may expect to guidance on public inspection. other identifying information about receive this notice within 21 days of the contributors. postmark date of the Form Read Foreign Organizations in the notice thoroughly because it will Information not available for public General provide further information about the inspection. The following items will not processing of your Form be open for public inspection. Foreign organizations are those that were created in countries other than the United No additional information needed. If Any information relating to a trade States, its territories, or its possessions. our initial review shows that you qualify, secret, patent, style of work, or apparatus Foreign organizations may apply for we will send you a letter stating that you that, if released, would adversely affect tax-exempt status on income earned in are exempt under section 501(c)(3) and you. (We must approve withholding this the United States in the same way that whether you are a public charity or a information.) domestic organizations apply for exempt private foundation. Any other information that would status. See, Language and currency adversely affect the national defense. requirements. Additional information needed. If (We must approve withholding this the initial review shows that we need A foreign organization applying for information.) additional information or changes, we will exempt status should complete all User fee check. assign Form 1023 to a specialist who will required parts of Form There are, Information only applications from the call or write you. Generally, we assign however, special rules below for some United States Virgin Islands, Bureau of applications in the order we receive them. Canadian organizations. Internal Revenue (BIR) and related Unless the application is approved for supporting documents. Contributions by U.S. residents to expedited processing, it will be worked in Contributors names and addresses TIP foreign organizations generally are the order received. and identifying information about not deductible. Tax treaties If the additional information indicates contributors included with Forms 990 or between the U.S. and certain foreign that you qualify, we will send you a letter 990-EZ and the Schedule B, filed with countries provide specific limited stating that you are exempt under section these forms. exceptions. 501(c)(3) and whether you are a public Form 990-T, Exempt Organization Annual returns for foreign charity or a private foundation. If we Business Income Tax Return. organizations. A foreign organization conclude that you do not qualify for When applying for tax-exempt status, that obtains exemption as a public charity exemption, we will send you a letter that you must clearly identify any information must file an information return annually explains our position and your appeal that is not open for public inspection by (Form 990 or Form 990-EZ). A foreign rights. separately marking it as NOT SUBJECT organization that is a private foundation TO PUBLIC INSPECTION and attaching must file Form 990-PF annually. Annual Filing Requirements an explanation of why you are asking for However, a foreign organization, other If an annual information return or tax the information to be withheld. We will than a private foundation, may be relieved return is due while the Form 1023 is decide whether to withhold the identified from filing Form 990 or Form 990-EZ in pending, complete the return, mark information from public inspection. any year in which it has gross receipts Application Pending in the heading, and from U.S. source income of $25,000 or send the return to the address indicated Making documents available for public less and has not conducted significant in the instructions. inspection. Both you and the IRS must activity in the United States. See the make the information that is subject to Instructions for Form 990 and Form Information on return filing disclosure available for public inspection. 990-EZ, and the Instructions for Form requirements and exceptions may be The public may contact us toll-free at 990-PF for further information. A foreign found in Publications 557 and 598 and in to request public organization that is subject to unrelated the instructions to the annual returns inspection or copies of the information. business income tax must file Form listed in Figure 1. The public may also request inspection of 990-T. Instructions for Form

6 Canadian Organizations an attorney or certified public accountant Canadian organizations that have Specific Instructions for whom you have submitted a received a Notification of Registration completed Form 2848, with the Form from the Canada Customs and Revenue Part I. Identification of Agency (formerly, Revenue Canada), and Line 7. If you wish to be represented by whose registrations have not been Applicant an authorized representative, a revoked ( Canadian registered charities ), completed Form 2848 must be attached Line 1. Full name of organization. are automatically recognized as section to the Form Enter your complete name exactly as it 501(c)(3) organizations and are not appears in your organizing document, Line 8. Provide information about required to file Form Canadian including amendments. persons, other than your officers, registered charities are also presumed to directors, trustees, employees, or be private foundations. A Canadian Line 2. c/o Name. If you have an in care authorized representative(s), whom you registered charity may complete certain of name, enter it here. paid, or promised to pay, to assist you in portions of the Form 1023 in order to be Line 3. Mailing address. Enter your establishing your organization, developing listed as a section 501(c)(3) organization complete address where all programs to solicit funds, or otherwise in IRS Publication 78, or to request correspondence will be sent. If mail is not advising you about organizational, classification as a public charity, rather delivered to the street address and you financial, or tax matters. than a private foundation. A Canadian have a P.O. Box, show the box number instead of the street address. For example, provide information registered charity should only complete about a paid consultant who advised you and submit the following documents. For a foreign address, enter the about obtaining tax exemption. Copy of its Notification of Registration. information in the following order: city, Line 9a. Organization s website. Enter province or state, and country. Follow the Part I of Form your complete website address if you country s practice in placing the postal Part X of Form 1023 (if requesting have one. Also, list any websites code in the address. Do not abbreviate public charity classification). maintained on your behalf. The the country name. information on your website should be Signature line in Part XI of Form Line 4. Employer Identification Number consistent with the information in your Form 8833, Treaty-Based Return (EIN). Enter the nine-digit EIN assigned Form Position Disclosure Under Section 6114 to you. Line 9b. (optional). Enter your or 7701(b). Do not submit this application until address to receive educational No user fee is required.! you have obtained an EIN. information from us in the future. Because CAUTION of security concerns, we cannot send confidential information via . Organizations Created in United An EIN is your account number with us However, we can use a fax to contact States Territories and and is required regardless of whether you you. Possessions have employees. If you need an EIN, you can apply for one by: Line 10. Generally, organizations not Organizations created in possessions and required to file Form 990 (or Form territories of the United States are 1. Calling EZ) include churches, certain church generally treated as domestic 2. Calling , if you are affiliated organizations, certain affiliates of organizations. These organizations located outside the United States. a governmental unit, and organizations complete all required parts of Form Mailing Form SS-4 to the IRS. with annual gross receipts normally not to apply for exempt status under section 4. Faxing Form SS-4 to a location more than $25,000. For more information, 501(c)(3). Special rules, discussed below, provided in the Instructions for Form see the Instructions for Form 990 and apply to some Virgin Islands SS-4. Form 990-EZ. organizations. You can get Form SS-4 online at www. Private foundations must file Form irs.gov, or by calling , to TIP 990-PF regardless of the amount Charitable contributions to order IRS tax forms and publications. of their gross receipts. organizations created in United States If you previously applied for an EIN possessions and territories are deductible Line 11. List the date you were legally and have not yet received it, or you are by the donors if the organization qualifies created by month, day, and year (for unsure whether you have an EIN, please for exempt status under section 501(c)(3). example, 02/01/2004). The date should call our toll-free customer account be consistent with your organizing services number, , for document described in Part II. Virgin Islands Organizations assistance. Line 12. For purposes of completing this The United States Virgin Islands, Bureau Line 5. Month the annual accounting application, you are formed under the of Internal Revenue (BIR) may request an period ends (01-12). Enter the month laws of a foreign country if you are not information only letter concerning the that your annual accounting period ends, formed under the laws of (1) the United exempt status under section 501(c)(3) of using a two-digit number format. For States, its territories and possessions, (2) an organization formed in the Virgin example, if your annual accounting period federally recognized Indian tribal or Islands. The organization itself does not ends December 31, enter 12. Your Alaska Native governments, or (3) the seek U.S. recognition of exempt status. annual accounting period is the 12-month District of Columbia. The information only procedure requires period on which your annual financial the BIR to complete Form 1023 and records are based. Your first tax year Part II. Organizational supporting documents for the could be less than 12 months. organization, but does not require a user Check your bylaws or other rules of Structure fee payment. The application and operation for consistency with the annual Only trusts, unincorporated associations, supporting documents are not open for accounting period entered in line 5. or corporations (including limited liability public inspection (see Public Inspection, Line 6a. Primary contact. Your primary companies) are eligible for tax-exempt for more information). contact person may be an officer, status under section 501(c)(3) of the director, trustee, or other individual who is Code. Sole proprietorships, partnerships, All other Virgin Islands organizations permitted to speak with us according to or loosely affiliated groups of individuals that seek U.S. recognition of exempt your bylaws or other rules of operation. are not eligible. status under section 501(c)(3) must follow Your primary contact person may also be To qualify for tax-exempt status, you the normal application process. an authorized representative, such as must check Yes on either line 1, 2, 3, or -6- Instructions for Form 1023

7 4 and submit a copy of your organizing Line 4a. A trust may be formed by a trust However, if the purposes listed in your document. agreement or declaration of trust. A trust organizing document are broader than Line 1. A corporation is an entity may also be formed through a will. those listed in section 501(c)(3), you organized under a Federal or state If your trust agreement copy does not should amend your organizing document statute, or a statute of a federally contain the proper signatures, you may before applying. A reference to section recognized Indian tribal or Alaskan native submit a written declaration that states 501(c)(3) will not ensure that your government. A corporation s organizing your copy is a complete and accurate purposes are limited to those described in document is its articles of incorporation. copy of the signed and dated original. section 501(c)(3). All of the language in Your declaration should clearly indicate your organizing document must be Certification of filing. If formed under the original date that it was signed. considered. The following is an example state statute, your articles of incorporation of an acceptable purpose clause: must show certification of filing. This Trust created by a will. For trusts means your articles show evidence that created by a will, include a copy of the The organization is organized on a specific date they were filed with and death certificate or a statement indicating exclusively for charitable, religious, approved by an appropriate state the date of death, and a copy of the educational, and scientific authority. The document must be an relevant portions of the will. purposes under section 501(c)(3) exact copy of what is on file with your Trust agreement and non-charitable of the Internal Revenue Code, or state. interests. If your trust agreement corresponding section of any provided for distributions for future federal tax code. If you do not have a copy of your articles of incorporation showing evidence non-charitable interests, indicate the date on which these interests expired. If your See Publication 557 for further of having been filed and approved by an trust agreement continues to provide for information and examples of how to limit appropriate state official, you may submit these interests, you will not qualify for your purposes. a substitute copy of your articles of incorporation. This substitute copy may tax-exempt status. Any amendment to your articles of be handwritten, typed, printed, or organization you submit should show Line 4b. Generally, a trust must be otherwise reproduced. It must be evidence that it was signed, dated, and funded with property, such as money, real accompanied by a declaration, signed by certified as described in Part II. estate, or personal property to be legally an officer authorized to sign for you, that it created. Line 2a. Dissolution clause. Your is a complete and correct copy of the organizing document must permanently articles of incorporation and that it Line 5. Bylaws are generally the dedicate your assets for a section contains all the powers, principles, internal rules and regulations of an 501(c)(3) purpose. This means that if you purposes, functions, and other provisions organization. If you have bylaws, you dissolve your organization in the future, by which you currently govern yourself. should submit a current copy. your assets must be distributed for an Bylaws do not need to be signed exempt purpose described in section Line 2. A limited liability company (LLC) unless they are the organizing document 501(c)(3), or to the federal government, or that files its own exemption application is as described in line 3 above. to a state or local government for a public treated as a corporation rather than a purpose. partnership. Instead of articles of incorporation, an LLC s organizing Part III. Required If your organizing document states that document is its state-approved articles of your assets would be distributed to Provisions in Your organization. If it has adopted an members or private individuals or for any operating agreement, then this Organizing Document purpose other than those provided in document is also part of its organizing section 501(c)(3), you must amend your Line 1. Purpose clause. Your organizing document. organizing document to remove such document must limit your purposes to statements. An LLC may only have 501(c)(3) those described in section 501(c)(3). Those purposes are: charitable, religious, If multiple amendments are required, member(s) to qualify for an exemption. An educational, scientific, literary, testing for they may be done at the same time. For LLC should not file an exemption public safety, fostering national or example, if you are a corporation and are application if it wants to be treated as a international amateur sports competition, required to amend both your purpose and disregarded entity by its tax-exempt and preventing cruelty to children or dissolution clauses, you may file a single member. animals. amending document with your Line 3. An unincorporated association appropriate government authority. formed under state law must have at least The generally accepted legal definition The following is an example of an two members who have signed a written of charitable includes relief of the poor, acceptable dissolution clause: document for a specifically defined the distressed, or the underprivileged; purpose. advancement of religion; advancement of Upon the dissolution of this education or science; erecting or organization, assets shall be The articles of organization of an maintaining public buildings, monuments, distributed for one or more exempt unincorporated association must include or works; lessening the burdens of the name of your organization, your purposes within the meaning of government; lessening neighborhood purpose, the date the document was section 501(c)(3) of the Internal tensions; eliminating prejudice and adopted, and the signatures of at least Revenue Code, or corresponding discrimination; defending human and civil two individuals. If your copy does not section of any future federal tax rights secured by law; and combating contain the proper signatures and date of code, or shall be distributed to the community deterioration and juvenile adoption, you may submit a written federal government, or to a state delinquency. Therefore, the phrase relief declaration that states your copy is a of the poor in your organizing document or local government, for a public complete and accurate copy of the signed properly limits your purposes. purpose. and dated original. Your declaration should clearly indicate the original date of If your purposes are limited in some Naming a specific organization to adoption. way by referring to section 501(c)(3), your receive your assets upon dissolution will organizing document also properly limits only be acceptable if your articles state Bylaws may be considered an your purposes. For example, the phrase that the specific organization must be TIP organizing document only if they relief of the elderly within the meaning of exempt under section 501(c)(3) at the are properly structured (includes section 501(c)(3) in your organizing time your dissolution takes place and your name, purpose, signatures, and intent to document also properly limits your articles provide for an acceptable form an organization). purposes. alternative if the specific organization is Instructions for Form

8 not exempt. See Publication 557 for For each past, present, or planned their compensation as employees and for further information and examples of activity, include information that answers all other services should be reported in acceptable language for dedication of the following questions. line 1a. assets in your organizing document. What is the activity? Line 1c. Independent contractors are Line 2c. Operation of state law. If you Who conducts the activity? persons who are not treated as are a corporation formed in the following When is the activity conducted? employees for employment tax purposes. states, then you do not need a specific Where is the activity conducted (for For information on determining if an provision in your articles of incorporation example: Los Angeles and San individual is an employee or an providing for the distribution of assets Francisco, California)? independent contractor, see Publication upon dissolution. How does the activity further your 15-A, Employer s Supplemental Tax exempt purposes? Guide. What percentage of your total time is Arkansas Minnesota allocated to the activity? Line 2a. Describe family or business California Missouri How is the activity funded? (This relationships between your officers, Louisiana Ohio should agree with the financial data in directors, or trustees. Related refers to Massachusetts Oklahoma Part IX.) both family and business relationships. If you are a testamentary charitable List any alternate names under which Family relationships include the trust formed in the following states, then you operate, including any aka (also individual s spouse, ancestors, children, you do not need a specific provision in known as) or dba (doing business as) grandchildren, great grandchildren, your trust agreement or declaration of names. siblings (whether by whole or half blood), trust providing for the distribution of and the spouses of children, If you have a website, you may attach assets upon dissolution. grandchildren, great grandchildren, and a paper copy to support your narrative siblings. description of activities. Alabama South Dakota Business relationships include employment and contractual Louisiana Virginia Part V. Compensation and relationships, and common ownership of Pennsylvania a business where any officers, directors, Other Financial or trustees, individually or together, If you are a testamentary charitable Arrangements With Your possess more than a 35% ownership trust formed in the states listed below and interest in common. Ownership means the language of your trust instrument Officers, Directors, voting power in a corporation, profits provides for a general intent to benefit Trustees, Employees, and interest in a partnership, or beneficial charity, then you do not need a specific interest in a trust. provision in your trust agreement or Independent Contractors Line 2b. Describe family or business declaration of trust providing for the distribution of assets upon dissolution. Compensation. For purposes of Part V, relationships between you and any of compensation includes salary or wages, your officers, directors, or trustees other Arkansas Minnesota deferred compensation, retirement than their position with you as an officer, California Mississippi benefits, whether in the form of a qualified director, or trustee. Colorado Missouri or non-qualified employee plan (pensions Line 2c. Describe family or business Connecticut Nebraska or annuities), fringe benefits (personal relationships between your officers, vehicle, meals, lodging, personal and Delaware New Hampshire directors, or trustees and your five highest family educational benefits, low interest District of Columbia New Jersey compensated employees or five highest loans, payment of personal travel, Florida North Carolina compensated independent contractors entertainment, or other expenses, athletic Georgia Ohio who will receive more than $50,000 in or country club membership, and taxable or non-taxable compensation per Illinois Oklahoma personal use of your property), and year. Indiana Oregon bonuses. Line 3b. Common control means that Iowa Rhode Island Example. Assume an organization Kansas Tennessee you and one or more other organizations compensates its director as follows: Kentucky Texas have (1) a majority of your governing boards or officers appointed or elected by Maine Vermont Wages the same organization(s), or (2) a majority Maryland Washington Director Compensation $ 2,500 of your governing boards or officers Massachusetts Wisconsin Salary as Chief Executive 40,000 consist of the same individuals. Common Michigan Officer control also occurs when you and one or Deferred retirement 2,000 more commonly controlled organizations Operation of state law is based on Health insurance policy 5,000 have a majority ownership interest in a Rev. Proc. 82-2, C.B Use of a vehicle 5,000 corporation, partnership, or trust. See the Foreign organizations. Foreign Total Compensation $ 54,500 instructions for line 2a, above, for a organizations may be able to rely upon definition of ownership. the applicable laws of their jurisdiction in Information in Part V must be consistent Line 4. By adopting these recommended a similar manner. You must provide a with the information provided in Part IX. compensation-setting practices, such as copy of the applicable law with an English Financial Data. by resolution of your governing board, translation. Line 1a. For each person listed, state you will be establishing procedures aimed their total annual compensation, or at helping to prevent your top officials Part IV. Narrative proposed compensation, for all services from receiving excess compensation to the organization, whether as an officer, benefits. Description of Your employee, or other position. Use actual Line 4e. Similarly situated Activities figures, if available. Officers, directors, organizations means tax-exempt or Describe completely and in detail your and trustees may use the organization s taxable organizations of a comparable past, present, and planned activities. Do address for mailing. size, purpose, and resources. not refer to or repeat the purposes in your Line 1b. Employees may use the Adjustments due to geographic area, and organizing document. You may refer to organization s address for mailing. Report other specific conditions are appropriate, other parts of the application rather than total compensation. For employees who but should be documented. The source(s) repeat information provided elsewhere. are also officers, directors, or trustees, of comparable compensation data, both -8- Instructions for Form 1023