Creating the pay.gov account
Register on pay.gov — search for "1023" and open the application. And note the user fee listed there before you begin.
This Form 1023 guide explains how to apply for 501(c)(3) status — by showing exactly what the IRS looks for and how your nonprofit should present its purpose and activities as well as finances. In a few clear actions, we outline what to prepare & how to file online and what happens after submitting the application.
Table of Contents
What is IRS Form 1023 and why does it matter?
IRS Form 1023 is simply the application you submit to the IRS — so your nonprofit can be officially recognized as tax-exempt in parallel to the section 501(c)(3) rules.
Upon the official approval, the organization may:
- prevent federal income tax on qualifying activities
- accept contributions that are deductible for many donors
- strengthen its standing with foundations and sponsors as well as partners
Form 1023 is filed electronically through pay.gov — and the IRS uses it to decide whether the group satisfies the legal standards for charitable status.
Who needs Form 1023 to apply for 501(c)(3) tax-exempt status?
Specific organizations that want to apply for 501(c)(3) tax-exempt status should submit Form 1023 — or the streamlined version if they qualify. The usual filers can be described as below:
- Charitable programs that present food & housing and health or relief services
- Educational programs like tutoring or literacy initiatives or scholarship funds
- Religious, scientific and literary groups along with similar groups that serve public interests
Specific entities, like churches and very small organizations satisfying specific gross-receipt thresholds, might be treated as exempt without applying — although many still choose to file to obtain a formal determination letter.
How do you complete the 501(c)(3) application step by step?
The 501(c)(3) application is completed by moving through Form 1023 section by section — fulfilling the official IRS Form 1023 instructions and keeping the answers consistent and specific. We present a detailed roadmap below:
Entering organization details — the basics
Provide legal name & EIN, address, contact person and date of formation along with the information on whether the entity replaced a prior organization.
Confirm the structure
The legal form should be identified — corporation or trust or unincorporated association — and the organizing document and any amendments should be attached as requested.
Presenting required language for 501(c)(3)
Make sure that the formation document covers language about charitable purposes and proper distribution of assets — if the organization closes. If it doesn't, you might need to amend it before application process.
Describing the activities in detail
Each program should be separately explained — what you do and who benefits, where it happens, and then how staff or volunteers carry it out.
Disclosing compensation and relationships
List officers and directors along with the key employees, their roles and any family or business ties among them. Describe how you prevent private benefits.
Providing financial information
Enter historical financials if you have them — plus following year projections — covering revenue sources and major expenses. Keep the scenario in your narrative fully aligned with the budgets presented.
Choosing the public charity classification
Answer the questions that determine whether you will be treated as a public charity — or a private foundation in parallel to the information on how your organization is to be funded.
Uploading all necessary documents & paying
Attach bylaws, organizing documents and schedules as well as any additional statements requested in the online checklist — and then authorize payment of the current user fee.
Saving copies for the files
Download the final submission and any confirmations for your own records — so future board members and your tax advisors are able to see exactly what the IRS reviewed.
When can you use Form 1023-EZ instead of the full version?
Form 1023-EZ might be used once your group satisfies strict size and eligibility tests on the IRS worksheet — and you are not a type of organization excluded from the simplified process. In order to check you qualifications, you must:
- complete the official eligibility worksheet for the streamlined form
- confirm that your projected gross receipts and total assets stay within the limits described
- make sure the organization type is not listed among those that must use the long form
In the case of passing every item on the worksheet, you can file the shortened online application — if you do not, the standard Form 1023 must be used.
| Question | Standard application — Form 1023 | Streamlined option — short form |
|---|---|---|
| Level of detail requested | Extensive narrative & schedules and attachments | Primarily eligibility statements and basic organizational data |
| Typical users | Larger or more complicated nonprofits | Smaller & less complicated groups fulfilling strict requirements |
| Review depth | Close look at programs & finances and governance | More limited review, based on attestations |
How can Helium Day Tax & CPAs support your Form 1023 filing?
Helium Day Tax & CPAs guides organizations through the Form 1023 process — from planning process to the final submission — so your leaders can focus on the core mission while the paperwork is managed precisely.
- Reviewing the distinct structure & mission statement and programs before application
- Checking whether the streamlined version fits your distinct situation — or whether the full filing is safer
- Drafting or refining narratives — so they completely match IRS expectations and your real-world plans
- Building budgets that line up with the programs as well as planned fundraising methods
- Organizing attachments and schedules along with internal records — so future reporting feels consistent
- Assisting you respond to follow-up questions from the IRS if they arise
If you want help turning this Form 1023 guide into a structured submission, reach out to the Helium Day Tax & CPAs team. Our professionals stand ready to present 360-degree support.
FAQs
What should I prepare before following a Form 1023 guide?
Before using any Form 1023 guide, gather your organizing documents, bylaws, and activity descriptions as well as draft budgets — so you can fulfill IRS Form 1023 instructions without stopping to hunt for major details.
When is Form 1023-EZ a better fit than the full 501(c)(3) application?
Form 1023-EZ can work when your nonprofit fulfills the IRS size and eligibility tests.
What if our activities change after Form 1023 is filed?
Minor shifts in programs are normal — however major changes in purpose or operations may necessitate updating the IRS — and could influence your 501(c)(3) classification.
Can we start fundraising before Form 1023 is approved?
Yes. It is possible to raise funds — before approval. Yet donors generally get a tax deduction only if the 501(c)(3) status is later granted — and made effective for that period.
Disclaimer: This Content is for informational purposes only. Nothing contained herein constitutes accounting, tax, financial, investment, legal or other professional advice, and, accordingly, the author and the distributor assume no liability whatsoever in connection with its use. This Content is not an exhaustive explanation of any topic, practice or process. You should seek the advice of a licensed professional before making any accounting, tax, financial, investment or legal decision.