Obtaining 501(c)(3) Non-Profit Status
- Introduction
- Do You Need A 501(c)(3) Status?
- How Much Will It Cost?
- Create A Friends of the Shelter Group
- Choose A Meaningful Name
- Obtain an Employer Identification Number (EIN)
- Create A Board of Directors
- Articles of Incorporation
- Complete Form 1023 To Apply for Non-Profit Status
- Do You Need A Lawyer Or Accountant?
- Will We Need To File Taxes Once We're Non-Profit?
- Online Resources
How Much Will It Cost?
State incorporation
State incorporation fees for nonprofit entities are generally under $100, although a few states exceed that. Many states charge a fee between $25 and $50.
Federal tax-exempt status
When filing for 501(c)(3) tax-exempt status, fees are higher. If your organization's average gross receipts have exceeded or will exceed $10,000 annually over a four-year period, the fee when submitting your Form 1023 is $750. If your average gross receipts have not exceeded or will not exceed $10,000 annually over a four-year period, the fee is $300 (as of November 2008).
If you are a small group or an individual and you're thinking, "Wow, that's a lot of money," remember that if you are currently limiting your fundraising efforts due to your lack of tax-exempt status, the cost of a few spay surgeries will open doors to greater resources for your group and the homeless pets you save. How quickly might you recover that $300 if you were able to actively solicit donations and apply for grant opportunities?
If you are thinking "Hey, it's worth it, but I never have $300 in my pocket at one time when there are so many animals to save," that should not stop you from beginning the process by seeking state incorporation and completing IRS Form 1023. Sometimes $300 does come your way. You may find a supporter who would be willing to provide the fee to help your organization grow. When you do, you can have the paperwork ready and won't have to start at square one.
