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. Non profit 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 make contributions to your organization, to deduct this expense on their personal tax returns. This makes it much more attractive to donate to your organization as now potential donors 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 1-2 business days from the time all information is received from you.
The IRS then takes anywhere from 3 weeks to 12 weeks to hear back depending on the type of application that is 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 501(c)(3) instead of filing on my own?
There are quite a few benefits to working with our company:
- Organizations can’t go back and file past years Form 990ns on the IRS’s website. They must file through an e-file provider to do so and 501(c)(3) Center is one such authorized IRS e-file provider.
- We send annual reminders to our clients regarding filing requirements. This makes sure you are up to date on all your federal filings. Additionally, since reminders are sent every year, if there is a change in officers for the organization , the reminder may actually be pivotal to the newest officer who may not be aware of the filing requirement or how to do so.
- We have found that some organizations were unsure of how to file the form on their own and we have made a more streamlined process for them that also means not having to research the requirements as well as not having to create a user login with the IRS in regards to the 990n.
- With you 501(C)(3) Center, Inc. you are getting a complete free of worry mindset that your filing is done correctly and timely.
- When filing the 990n not all organizations remember to make a copy of the filing as the IRS gives only one opportunity to print this. We make sure this is done and will have a record of this on file for you at your request.
- 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 either: 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?
In order apply for reinstatement please fill out the checklist noted 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 with 501c3 Center?
No you may file directly with the IRS for 990 and 501c3 application or with your State for Solicitation of Contributions applications. We are a 3rd 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 grant the organization exemption from federal income tax. To qualify as exempt from federal income tax, an organization must meet requirements set forth in the Internal Revenue Code.
How do I maintain my 501(C)(3) status with the IRS.
Once you are approved for tax exempt status, you must file an annual 990 with the IRS in order to stay in good standing. The deadline to file the 990 return is May 15th for December 31 fiscal year organizations.
On the 990n filing it asks if the organization’s revenue is normally below $50,000. How do you define normally?.
Gross receipts are considered to be normally $50,000 or less if the organization:
- Has been in existence for 1 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
- Is at least 3 years old and averaged $50,000 or less in gross receipts for the immediately preceding 3 tax years (including the year for which calculations are being made).