Applying for Tax Exempt Status? Pitfalls to Watch Out For
If you’ve ever considered starting a nonprofit organization, then you’ve probably taken a look at the IRS’ Application for Recognition of Tax-Exempt Status. IRS Form 1023 is a daunting application to say the least. At one point, the IRS estimated that for the average person to properly complete and submit the form would take more than 100 hours. It is the equivalent of getting audited before your organization even gets started. And after putting in all of that work, nearly 15% of applications never get approved.
What are some of the common mistakes that could hinder or delay your application, effectively destroying your mission-driven project before it even gets off the ground?
Forming a Nonprofit Organization Part 2: Applying for Tax Exempt Status
There are two ways of applying for recognition as a tax-exempt organization: IRS Form 1023-EZ or IRS Form 1023.
Structuring a Social Enterprise: Non-Profits and Unrelated Business Income
This week we turn to one of the unique issues impacting non-profit organizations who try to raise money by starting a social enterprise–unrelated business income. As a non-profit (and for this blog post, we’re going to focus on 501(c)(3) organizations), how do you start a social enterprise without jeopardizing your charitable status and without incurring unexpected tax liabilities?
