Applying for 501(c)(3) Tax Exempt Staus

Churches and religious organizations, like many other charitable organizations, qualify for exemption from federal income tax under Internal Revenue Code Section 501(c)(3) and are generally eligible to receive tax-deductible contributions. To qualify for tax exemption, such organizations must meet the following requirements:

• The organization must be organized and operated exclusively for religious, educational, scientific or other charitable purposes,
• Net earnings may not inure to the benefit of any private individual or shareholder,
• No substantial part of its activity may be attempting to influence legislation,
• The organization may not intervene in political campaigns, and
• No part of the organization's purposes or activities may be illegal or violate fundamental public policy

Organizations that wish to be recognized as tax-exempt must submit written applications to the Internal Revenue Service within 27 months from the end of the month in which the organization is formed in order to be considered exempt as of the date the organization was formed. Applications must minimally include:

• Federal Employer Identification Number (FEIN)
• Articles of Incorporation
• By-Laws (in some states)
• Certificate of Incorporation
• Mission Statement
• History of Organization
• Charitable Objectives
• Roster of the Board of Directors
• Three-Year Financial Statement
• IRS Form 1023
• IRS Form 8718 & User Fee*

Michelle H. Mitchell Accounting & Tax Planning is eager to assist your organization in preparing, submitting and obtaining IRS application approval in a timely manner, typically in 2-3 months. For more information, contact us at michelle@mitchelltaxpro.com.

*The most recently published user fee can be found at the Exempt Organizations website under the IRS Tax Exempt and Government Entities division via www.irs.gov/eo or by calling toll-free at
(877) 829-5500.

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