So, you’ve decided to dive into the world of non-profit organizations. Congratulations! But, hold on a sec – there’s a bit of paperwork involved. Specifically, you’ll encounter IRS Forms 1023 and 1023-EZ. Now, let’s break down the nitty-gritty of these forms without getting too tangled up in jargon.

Form 1023 – The Comprehensive Route:

This form is the heavyweight champion, the thoroughbred of the IRS stable. Filing the 1023 involves a detailed examination of your organization’s purpose, activities, finances, and governance. 

But, why does this matter? Well, if your organization has a complex structure, engages in diverse activities, or anticipates receiving substantial donations, the 1023 is your go-to. It’s the thorough analysis that ensures your nonprofit stands on a solid foundation.

Now, here’s a stat to chew on: According to the National Center for Charitable Statistics, over 56,000 organizations filed Form 1023 in 2022. This suggests a sizable number of nonprofits opt for the comprehensive route.

Form 1023-EZ – The Quick and Simplified Route:

Contrastingly, the 1023-EZ is the swift, more straightforward sibling. If your nonprofit meets certain criteria – such as projected annual gross receipts under $50,000 and total assets under $250,000 – you might be eligible for this streamlined option.

But, why should you care about the 1023-EZ? It’s all about efficiency. With a simplified application process, you can gain tax-exempt status faster, enabling your organization to hit the ground running. In 2022, nearly 75% of organizations seeking tax-exempt status chose the 1023-EZ, as reported by the IRS.

Now, let’s tackle the elephant in the room – processing time. You file your paperwork and eagerly await the IRS’s verdict. Form 1023 can takes longer to process due to its comprehensive nature. On the flip side, the 1023-EZ typically has a shorter processing time. You can take a look at the current processing times here: https://www.irs.gov/charities-non-profits/charitable-organizations/wheres-my-application-for-tax-exempt-status

To best determine, whether you should choose Form 1023 or 1023-EZ along with receive a quote for us to help you bring your nonprofit dream to reality complete the simple form found here: https://nonprofitenthusiast.com/nonprofit-filings-service/ Let’s conquer that paperwork and help your nonprofit shine!