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Form 1023 Checklist: 501(c)(3) Application Requirements

Nonprofit Formation and IRS Compliance Resource

Streamline your 501(c)(3) application with our Form 1023 checklist. For nonprofit founders, attorneys, and formation services. Form 1023 is the IRS application for recognition of exemption under section 501(c)(3). Ensure your organizing document has the required charitable-purpose and dissolution language, gather narrative description of activities, governance and compensation information, conflict of interest policy, financial data and budget, public-support information if claiming public charity status, and required schedules and user fee so you file a complete application and avoid delays or requests for additional information. Use Form 1023-EZ if you qualify for the streamlined option.

Key Benefits

Gather all Form 1023 parts and attachments in one place
Confirm organizing document meets IRS required provisions
Prepare narrative, governance, and financial sections
Avoid common omissions that trigger IRS follow-up
Support timely filing for retroactive exemption
Professional nonprofit formation workflow

Common Use Cases

New 501(c)(3) organizations filing Form 1023 for the first timeAttorneys and CPAs preparing exemption applicationsNonprofit founders self-filing with IRSFormation services guiding clients through Form 1023Organizations checking eligibility for Form 1023-EZBoards ensuring documents support the application

Frequently Asked Questions

What is the difference between Form 1023 and Form 1023-EZ?
Form 1023 is the full application for 501(c)(3) recognition; it requires detailed narrative, financials, and schedules. Form 1023-EZ is a shorter, online form for organizations that meet eligibility (e.g. projected gross receipts and assets below thresholds, typically $50,000 and $250,000 in first three years). The IRS has an eligibility worksheet; if you qualify, 1023-EZ is faster and has a lower user fee.
What must be in the organizing document for 501(c)(3)?
The IRS requires the organizing document (articles of incorporation or trust agreement) to include: (1) a charitable purpose that falls under 501(c)(3)—religious, charitable, scientific, literary, educational, etc.; (2) a clause stating that assets upon dissolution will go to another 501(c)(3) or government; and (3) no activities that permit private inurement or lobbying/political campaign intervention beyond permitted limits. Exact language is in the Form 1023 instructions.
When must we file Form 1023 for retroactive exemption?
To have exemption apply from the date you were formed, file Form 1023 within 27 months of the end of the month in which you were incorporated (or formed). If you file later, exemption generally applies only from the postmark date of the application unless you qualify for an extension. File as soon as practicable after formation.
What is the Form 1023 user fee?
User fees for Form 1023 and 1023-EZ are set by the IRS and change periodically. Form 1023-EZ has a lower fee; full Form 1023 has a higher fee. Check the current IRS Form 1023 page and instructions for the exact amount and payment method (e.g. pay.gov). Fee is generally nonrefundable.

Checklist

Legal Documents

Organizing document (articles of incorporation or trust) with IRS-required language: charitable purpose, dissolution to 501(c)(3), no inurement
Required

Articles must include purpose that is exclusively 501(c)(3)-type; dissolution clause directing assets to another exempt org or government; and no private inurement. Amend articles if needed before or with the application.

Bylaws or other governing document (current, adopted)
Required

IRS may request bylaws. They should align with articles and reflect governance (board, officers, meetings). Adopt before or at organizational meeting; keep signed copy.

Application Narrative

Narrative description of past, present, and planned activities (Form 1023 Part IV)
Required

Detailed description of what the organization does and will do—programs, who is served, how. Be specific; generic language can trigger questions. Explain how activities further exempt purposes.

Governance & Compensation

Compensation and financial arrangements for officers, directors, and key employees (Parts V, XI)
Required

List all who receive or will receive compensation; amounts and basis. Document that compensation is reasonable. Family or insider relationships must be disclosed. No inurement.

Conflict of interest policy (adopted; attach copy if available)
Required

IRS expects 501(c)(3)s to have a conflict of interest policy. Adopt before filing; attach to application. Supports governance and reasonableness of transactions with insiders.

Financial

Financial data: actual income/expenses (if operating) and projected budget (Part IX and schedules)
Required

Report actual figures for years you have been in existence and projected figures for current and next year. Use IRS categories. Start-up organizations may have minimal or no revenue initially.

Public charity classification and public support information (Parts VII, X) if claiming public charity
Required

Most applicants claim public charity status (e.g. 509(a)(1) or 509(a)(2)). Complete the public support schedule and narrative as required. Private foundation rules apply if you do not qualify as public charity.

Application

Complete required schedules (A–H as applicable: activities, compensation, loans, etc.)
Required

Form 1023 instructions list which schedules apply. Common: Schedule A (activities), Schedule O (compensation, family relationships). Answer all questions; attach explanations where needed.

Submission

User fee payment (current amount per IRS; pay.gov or specified method)
Required

Check IRS Form 1023 page for current fee. Pay electronically (pay.gov) or as instructed. Include payment proof or confirmation with submission. Fee is generally nonrefundable.

File within 27 months of formation for retroactive exemption (or document extension)
Required

27 months from end of formation month for exemption to apply from formation. After that, exemption typically from postmark date only. Extensions may apply in limited circumstances; see instructions.

Ensure EIN, legal name, and address match across application and organizing documents
Required

Inconsistent name or EIN can delay processing. Use exact legal name and EIN from IRS EIN assignment. Confirm address for IRS correspondence.