501c3 Requirements

The date an organization files its Form 1023 application can affect the effective date of its tax-exempt status, if granted. Most organizations must file Form 1023 by the end of the 15th month after they were created, with a 12-month extension available.

An organization that files its application before the deadline will be recognized as tax exempt under section 501(c)(3) from the date of its creation. An organization that files after the deadline may be recognized as tax exempt from the date of the application; it may also request exemption retroactive to the date of creation.

An organization that is not a private foundation is not required to file Form 1023 unless its annual gross receipts are normally more than $5,000. An organization must file Form 1023 within 90 days of the end of the year in which it exceeds this threshold.

Each organization should take into consideration these timeframes and the 501c3 requirements to determine the appropriate time to file Form 1023, keeping in mind that the application fee is changing in 2010.

User fees will increase for all applications for exemption (Forms 1023, 1024, and 1028) postmarked after January 3, 2010:

$400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period
$850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period
$3,000 for group exemption letters