Question: I am starting a nonprofit organization, and I need to secure our 501(c)3 status. I don’t know how to fill Form 1023, the Application for Recognition of Exemption, from the IRS. Do I need an attorney to complete it? Can you help?

Questions about the application for 501(c)3 status or form 1023 are by far the most common I get in my role as a professional-in-residence at the ASU Lodestar Center. The instructions from the IRS are almost 40 pages and the form itself is 26 pages, so it is no wonder the task may feel overwhelming! Fortunately, there are resources available, and a clear perspective will help focus your efforts. 

It’s a process, not just a form

Forming a nonprofit organization requires a great deal of organizational development, including defining your legal structure, enlisting a board of directors, clarifying your purpose and making plans for implementation and funding, among other things. Think of form 1023 as a report of efforts in forming a nonprofit organization instead of simply a form that needs to be filled out. In fact, form 1023 can provide a framework…

Question: I am starting a nonprofit organization, and I need to secure our 501(c)3 status. I don’t know how to fill Form 1023, the Application for Recognition of Exemption, from the IRS. Do I need an attorney to complete it? Can you help?

Questions about the application for 501(c)3 status or form 1023 are by far the most common I get in my role as a professional-in-residence at the ASU Lodestar Center. The instructions from the IRS are almost 40 pages and the form itself is 26 pages, so it is no wonder the task may feel overwhelming! Fortunately, there are resources available, and a clear perspective will help focus your efforts. 

It’s a process, not just a form

Forming a nonprofit organization requires a great deal of organizational development, including defining your legal structure, enlisting a board of directors, clarifying your purpose and making plans for implementation and funding, among other things. Think of form 1023 as a report of efforts in forming a nonprofit organization instead of simply a form that needs to be filled out. In fact, form 1023 can provide a…

Americans donate nearly $300 billion annually to more than 1.2 million charities and religious groups, according to Giving USA. Most donors believe that they are giving to worthwhile causes, but few conduct the necessary research to determine how effectively an organization uses donations to accomplish its mission. People who wouldn't dream of investing money without performing the necessary due diligence may blindly give money to organizations that use the majority of donations for executive salaries, fundraising and advertising. This is why due diligence is so important before making a donation.

Here are a few tips for vetting a nonprofit before you give:

Align your goals

The first step in choosing a charity is thinking about what you would like to accomplish. If the scope of your aspiration is local, find charities that are based in your neighborhood or city. If you're most concerned about national and global issues, like worldwide hunger or cancer, look for nonprofits that are equipped for such a large challenge. Remember that you can't always judge a big organization by its publicity, since that may just reflect a large advertising budget. Also, be on the lookout for questionable charities that have a name that closely resembles the name of a well-known, legitimate…

Welcome to Research Friday! As part of a continuing weekly series, each Friday we invite a nonprofit scholar, student, or professional to highlight current research reports or studies and discuss how they can inform and improve day-to-day nonprofit practice.

There are over 1.5 million nonprofits in the United States. Of those, three-quarters (almost 1.2 million) have annual budgets under $1 million, and most are even smaller. What these organizations lack in size, however, they make up for in impact. They respond to localized needs, are absolutely critical to community building, and are staffed by people with deep knowledge and caring for the communities where they live and work. These organizations often serve communities that have been abandoned by countless others. Yet, in the Nonprofit Finance Fund’s (NFF) work with small nonprofits (most recently through our Capital and Capacity for Economic Recovery Initiative), we’ve…

Don’t get me wrong. Google is my best friend. I shudder when I think of how difficult it was in the dark ages prior to this uber useful search engine. However, Google is a tool, and like other search engines, a data middleman, not the end result. I myself have been frustrated by even its super powers to extract data that I know is out there in cyberspace.

So how do we search so we can find that most wonderful of prizes? How to best use the Internet to find the data we need? How do we judge the quality of the hits we get?

Although I do not claim to be an expert, I am happy to share what I’ve learned in more than a decade of mining the Internet for information to support grant proposals.

Information search tips:

• Less is more. Try using fewer key words in your initial search, particularly if you are having problems getting hits.
• Having said that, I have had luck with long, specific searches although it is not typical. It doesn’t cost anything to try it though!
• Review the hits to help refine your search; if the search engine is picking up on the wrong key words get rid of them.
• Rearrange the words in your search; sometimes the search engine focuses too much on the first word in the string.
• Include words like “study” and “best practices” in the search to find research based information. I have found just adding “study” will give me much better hits.…