The IRS application organizations file to obtain recognition of tax-exempt status under section 501(c)(3). Requires articles of incorporation, bylaws, a narrative of activities, financial data, and a Pay.gov user fee. Smaller organizations may qualify for Form 1023-EZ instead.
Why it matters for your nonprofit
501(c)(3) status unlocks tax-deductible donations and many grant opportunities. Errors on Form 1023 delay approval and can trigger follow-up questions from the IRS.
How it shows up in daily work
You gather bylaws, conflict-of-interest policies, program narratives, and financial projections, then file through Pay.gov with the correct full or EZ form for your budget.
Common mistakes
- Submitting before your purpose and activities language match your actual programs.
- Choosing Form 1023-EZ when projected revenue exceeds EZ limits.
- Leaving out the sections that apply to your activities, such as schools, hospitals, or churches.
How AlignMint helps
AlignMint ties fund accounting, donor records, and reporting in one place so terms like Form 1023 show up correctly in your books—not only in a policy memo.