Form 1023 Checklist: Everything You Need Before Filing

Filing for 501(c)(3) status is the single most important step in starting a nonprofit. A missing document or incorrect clause can delay your application by months — and the filing fee is non-refundable.

This checklist covers every document, requirement, and decision you need before submitting IRS Form 1023 or Form 1023-EZ. Use it alongside our interactive Form 1023 Preparation Checklist tool.

Choose Your Form First

Criteria	Form 1023-EZ	Form 1023 (Full)
Projected gross receipts	Under $50,000/year	$50,000+/year
Total assets	Under $250,000	$250,000+
Filing fee	$275	$600
Approval time	2-4 weeks	3-6 months
Financial projections	Not required	3 years required

If you qualify for Form 1023-EZ, use it. For a detailed walkthrough, see our Form 1023 Filing Guide.

Phase 1: Prerequisites Checklist

Complete every item before touching the IRS application.

Incorporation Documents

• Filed articles of incorporation with your state. See our state-by-state guide or find your state at the Start a Nonprofit hub.
• Articles include a purpose clause limiting activities to exempt purposes under Section 501(c)(3).
• Articles include a dissolution clause directing remaining assets to another 501(c)(3) organization.
• Articles include a no-private-inurement provision preventing insiders from benefiting.

Missing any of these clauses is the number one reason applications get rejected. If your articles are already filed without them, you must amend them with your state before applying.

Bylaws and Governance

• Adopted bylaws covering board structure, officer roles, meeting procedures, and amendment process. See our Bylaws Template.
• Conflict of interest policy included in or adopted alongside bylaws. The IRS specifically asks about this.
• Compensation policy documenting how the board will set and review compensation for officers and key employees.
• Board of directors in place meeting your state's minimum requirement. See Board Requirements.

Federal Identification

• Obtained an EIN (Employer Identification Number) from the IRS. This is free and instant online. See How to Get an EIN.

Mission and Activities

• Written mission statement that clearly describes your exempt purpose. See Mission Statement Guide.
• Detailed description of each planned activity including who benefits, where it happens, how often, and who conducts it.
• NTEE code selected — the National Taxonomy of Exempt Entities classification code for your organization type.

Phase 2: Financial Preparation (Full Form 1023 Only)

Form 1023-EZ filers can skip this section.

• Revenue projections for 3 years broken down by: gifts and grants, program service revenue, fundraising events, investment income, and other revenue.
• Expense projections for 3 years broken down by: compensation, professional fees, occupancy, travel, program costs, and administrative expenses.
• Balance sheet if you have been operating (actual figures for completed years).
• Public support calculation showing at least one-third of support comes from the general public, government grants, or a combination (required for 509(a)(1) public charity status).

Tips for financial projections:

• Be realistic — the IRS is skeptical of overly optimistic numbers
• Show that expenses don't wildly exceed revenue without explanation
• Include notes for any unusual items or large year-over-year changes
• If you haven't started operations, projections based on your business plan are acceptable

Phase 3: Narrative Preparation (Full Form 1023 Only)

Part IV of Form 1023 is the most important section. Prepare your narrative before you start filling out the form.

For each activity your organization will conduct, write:

1. What it is — specific, not vague. "Free after-school tutoring for grades 3-8" not "education programs."
2. Who benefits — the population, community, or cause served.
3. Where it happens — geographic area, facility, online or in-person.
4. When and how often — schedule, frequency, seasonal patterns.
5. Who conducts it — paid staff, volunteers, contractors, partners.
6. What percentage of resources it uses relative to your total operations.
7. How it furthers your exempt purpose — connect the activity to your 501(c)(3) mission.

Common narrative mistakes:

• Too vague: "We help people in our community"
• Too aspirational: "We will transform education nationwide"
• Missing the connection between activities and exempt purpose

Phase 4: Board and Compensation Details

• Full names and mailing addresses for all officers, directors, and trustees.
• Compensation amounts for each officer and director (even if $0 — list it).
• Compensation for the five highest-paid employees (if any, even if you haven't hired yet).
• Description of how compensation was determined — comparable data, board vote, independent review.
• Relationships between board members disclosed — the IRS checks for family members and business partners on the same board.

Phase 5: Filing Checklist

When everything above is ready, you're prepared to file.

For Form 1023-EZ:

• Go to Pay.gov and search for "Form 1023-EZ"
• Complete the online form (30-60 minutes)
• Pay the $275 fee
• Save your confirmation number
• Wait 2-4 weeks for your determination letter

For Full Form 1023:

• Go to Pay.gov and search for "Form 1023"
• Complete all parts online, uploading attachments
• Attach: articles of incorporation, bylaws, conflict of interest policy
• Attach: financial statements and projections
• Pay the $600 fee
• Save your confirmation number
• Wait 3-6 months — respond to any IRS follow-up within 28 days

After Approval: What Comes Next

Once you receive your determination letter:

1. Apply for state tax exemptions — this is separate from federal. Use our state-specific startup checklist.
2. Register for charitable solicitation — 41 states require this before you solicit donations.
3. Set up fund accounting to track restricted funds and generate Form 990 reports.
4. Start accepting tax-deductible donations — you're officially a 501(c)(3).
5. Mark your Form 990 deadline — missing three consecutive years means automatic revocation.

Common Rejection Reasons and How to Avoid Them

Reason	How to Avoid It
Missing purpose clause in articles	Check articles against IRS requirements before filing
Missing dissolution clause	Include specific 501(c)(3) dissolution language in articles
Vague activity descriptions	Use the 7-point framework in Phase 3 above
Unrealistic financial projections	Base numbers on actual research and comparable organizations
Private benefit concerns	Document independent board review of all compensation
Late response to IRS questions	Set a calendar reminder — you have 28 days to respond

Use our interactive Form 1023 Preparation Checklist to track every item as you go. For the complete startup process from mission to operations, start with How to Start a Nonprofit.

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Related:

• How to File IRS Form 1023 for Tax-Exempt Status
• How to Start a 501(c)(3): Step-by-Step Guide
• How to Write Nonprofit Bylaws
• How Much Does It Cost to Start a Nonprofit?
• Form 990 for New Nonprofits