NONPROFIT TAX EXEMPT STATUS & FUNDING OPTIONS

By this point you already have your Articles of Incorporation, EIN, statement of information, and Bylaws done and ready to go, what next? It’s time to talk about funding. With so many worthy nonprofit organizations raising funds can be difficult if you’re not strategically prepared. Let’s take a look at a few funding options, but not limited too:

• Friends & Family
• Fundraisers
• Community grants
• Private foundations
• Public grants
• Corporate donations
• Corporate sponsorships

Most grants require a 501c3 tax exemption status. Being exempt from federal income taxes is not the only benefit, donors can also deduct contributions they made to your organization. Your organization is also qualified to receive tax deductible bequest, devises, transfers and gifts. Applying for tax exemption can be done by filing either a 1023 or a 1023ez depending on the size of your organization, and it can be done online through the IRS website which uses pay.gov. Below is a sample template of the requirements to determine whether to file 1023 or 1023ez, and a sample of form 1023ez.