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Nonprofit Law/Schedule B. School (Form 1023)

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Question
Greetings. I am filling out Form 1023. It is unclear to me whether I need to include "Schedule B. Schools..." with our 1023 application. Although we plan to have a school in the future, and it is one of the items listed in our bylaws of activities, it is not the primary emphasis of our organization - it would only be a part of our overal vision and mission. Additionally, we do not have the school in operation at this time. Part III. Line 19 states: "Do you or will you operate a school? If “Yes,” complete Schedule B. Answer “Yes,” whether you operate a school as your main function or as a secondary activity." The answer is yes; however when I look at Schedule B. it seems to be written for organizations that already have a school in operation (see line line 1a for example). MY QUESTION IS: DO I NEED TO INCLUDE SCHEDULE B? IF SO, DO I FILL IT OUT AS IF THE SCHOOL WERE IN OPERATION NOW? Thank you.

Answer
are sincere now. See the  instructions to the Application
for Exemption which is available at
www.irs.gov/pub/irs-pdf/i1023.pdf and on page 12 column
1 they state that you need to put in "reasonable and good
faith estimate of your future finances for your current
year and each year you have not existed for a
total of 3 years of financial information."

If you plan to have a school during that period, then you would complete Schedule B.

Harvey Mechanic, Attorney at Law -
Harvey108@hotmail.com

P.S. This response is intended to be a general statement of law, should not be relied upon as legal advice and does not create an attorney/client relationship.  

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Harvey Mechanic

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I am an attorney and I volunteer time to answer general questions about U.S. Federal income tax issues of nonprofit 501(c)(3) public charities only. Those questions could be about 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 questions about Nonprofit's possible unrelated or for-profit businesses or how to fill out forms. This forum is only for general questions about federal tax law, not as the law applies to your specific situation. If you do not make your question public then I will not be spending much of my donated time on answers that would not benefit the public. If you have other questions, please contact me at Harvey108@hotmail.com I will reply from my email. In any case, do not reveal confidential information to me until after I have contracted with you to provide personal legal services. My responses on this forum are intended to be general statements of law, should not be relied upon as legal advice, and do not create an attorney/client relationship. For me to consider your individual situation and how the law applies, I would need to gather extensive information about the situation. To search my previous answers you can do a Google search by "site:allexperts.com/q/nonprofit" without the quotes and then add your search terms before hitting enter.

Experience

I have been practicing law and especially the law of nonprofit organizations since 1990 when I was admitted to the New York Bar and I have maintained my status with the Bar since that time.

Education/Credentials

B.S. Columbia University in New York City, 1970

J.D. (Law Degree) Brooklyn Law School, 1990 -- Cum Laude.


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