FAQS

Frequently Asked Questions

What are the main benefits of obtaining a 501(C)(3) status for my organization?
There are 2 major benefits of receiving a 501(C)(3) exemption:

1. Nonprofit organizations exempt under 501c3 do not pay federal income taxes. If you do not apply for the exemption, you most likely will be subject to these.

2. Becoming exempt under 501C3 could allow donors who contribute to your organization to deduct this expense from their personal tax returns. This would make it much more attractive to donate to your organization, as potential donors would now receive an individual benefit for doing so.

How long does the 501(C)(3) application process take?
The processing time for us to complete and file the application typically ranges from 1-2 business days from the time we receive all information from you.

The IRS then takes 3 to 12 weeks to hear back, depending on the type of application submitted.

You can check to see the status online directly with the IRS at https://apps.irs.gov/app/eos/

For the 990 series, why should I work with the 501(c)(3) Center instead of filing on my own?

There are quite a few benefits to working with our company:

  1. Organizations can’t go back and file past years’ Form 990ns on the IRS’s website. To do so, they must file through an e-file provider, and 501(c)(3) Center is one such authorized IRS e-file provider.
  2. We send annual reminders to our clients regarding filing requirements. This ensures that you are up to date on all your federal filings. Additionally, since reminders are sent every year, if the organization’s officers change, the reminder may be pivotal to the newest officer, who may not be aware of the filing requirement or how to do so.
  3. We found that some organizations were unsure of how to file the form on their own, so we have made it more streamlined for them. This also means not having to research the requirements or create a user login with the IRS regarding the 990n.
  4. With 501(C)(3) Center, you are getting a worry-free mindset that your filing is done correctly and promptly.
  5. Not all organizations remember to make a copy of the filing when filing the 990n, as the IRS gives only one opportunity to print this. We ensure this is done and will have a record on file for you at your request.
  6. Our customer support staff always answers questions within 24 hours and can be reached through our contact page.

What are the most common types of 501(c)(3) organizations?
The most common type of 501(c)3) organization is one whose following purposes are charitable, religious, educational, scientific, literary, testing for public safety, fostering amateur sports competition, or preventing cruelty to children or animals.

My 501(c)(3) was revoked; how do I get it back?
To apply for reinstatement, please complete the checklist on the home page under the 3-step process. Once this is completed and we submit the reinstatement application to the IRS, you can check your status at https://apps.irs.gov/app/eos/

Are you required to submit your forms to the 501c3 Center?
No, you may file directly with the IRS for 990 and 501c3 applications or with your State for Solicitation of Contributions applications. We are a third-party filing company, not to be confused with any local government agency or the IRS.

What are the fees for using your service?
Our fees can be found on the pricing page by clicking here.

I incorporated my nonprofit with my State. Am I automatically tax-exempt?
Nonprofit status is a state law concept. Nonprofit status may make an organization eligible for certain benefits, such as state sales and property tax exemptions. Organizing as a nonprofit organization at the state level does not automatically exempt the organization from federal income tax. To qualify as exempt from federal income tax, an organization must meet the Internal Revenue Code requirements.

How do I maintain my 501(C)(3) status with the IRS?
Once approved for tax-exempt status, you must file an annual 990 with the IRS to stay in good standing. The deadline to file the 990 return is May 15th for December 31 fiscal year organizations.

The 990n filing asks if the organization’s revenue is normally below $50,000. How do you define “normally”?
Gross receipts are considered to be usually $50,000 or less if the organization:

    • Has been in existence for one year or less and received, or donors have pledged to give, $75,000 or less during its first taxable year;
    • Has been in existence between 1 and 3 years and averaged $60,000 or less in gross receipts during each of its first two tax years; and
    • It is at least three years old and averaged $50,000 or less in gross receipts for the immediately preceding three tax years (including the year for which calculations are made).