Ask a Nonprofit Specialist - Applying for 501c3 status with new 1023-EZ form

posted by
Anne Byrne,
ASU Lodestar Center


 Question: I am starting a nonprofit organization and need to apply for 501c3 status.  Can I fill out the new 1023-EZ form?  

The Internal Revenue Service recently released Form 1023-EZ, the streamlined application for recognition of exemption of 501c3 status. This form is significantly shorter and easier to complete than the regular application, which is a welcome change for aspiring small nonprofit organizations. In order to utilize the streamlined applications, organizations must meet eligibility requirements and complete the Form 1023-EZ Eligibility Worksheet. There are 21 questions on the worksheet and an affirmative answer to any of the questions makes your organization ineligible to utilize the streamlined application.

Organizations with Budgets and Previous Expenses Less than $50,000 per year
The streamlined application is intended for small organizations, so only those with projected budgets of less than $50,000 per year are eligible. If the organization has been operating already, gross receipts from each of the last three years also must be less than $50,000 per year and total assets cannot exceed $250,000.