AboutHarvey Mechanic Expertise Federal tax issues of nonprofit 501(c)(3) public charities only. Establishing and maintaining legal requirements for such non-profit organizations in the United States, including Internal Revenue service filings and requirements. I will not be working on this free forum to answer question about Nonprofit's Unrelated Business or how to fill out forms. This forum is only for legal questions about a specific nonprofit asked by members or those otherwise directly effected by the specific nonprofit organization.
Experience I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar.
Expert: Harvey Mechanic Date: 7/18/2008 Subject: 501 (c)(3) status
Question I've looked at form 1023 from the IRS to become recognized as a tax exempt 501(c)(3) non-profit organization. I cannot figure out what the application cost is. There are several different categories. What category does a booster club fall under? or how much is the application fee?
Answer See IRS Publication 557 "Tax Exempt Status for Your Organization"
www.irs.gov/pub/irs-pdf/p557.pdf
which has on page 18-19
---start of excerpt ---
Some organizations are not required to file Form
1023....[including any organization other than a private
foundation]...These organizations are exempt automati-
cally if they meet the requirements of section
501(c)(3).
1. During its first tax year the organization
received gross receipts of $7,500 or less,
2. During its first 2 years the organization had
a total of $12,000 or less in gross receipts,
and
3. In the case of an organization that has
been in existence for at least 3 years, the
total gross receipts received by the organi-
zation during the immediately preceding 2
years, plus the current year, are $15,000
or less.
--end of excerpt ---
If you file the IRS minimum filing fee for such a determination
letter is $300 and goes up to $750 if the annual gross
receipts of your organization are or plan to be $10,000
or more average for the first 3 years. See the top of page 12 of the exemption Form 1023
www.irs.gov/pub/irs-pdf/f1023.pdf
Instructions on page 16 of
www.irs.gov/pub/irs-pdf/i1023.pdf
Harvey Mechanic
Attorney At Law
Harvey108@hotmail.com
