IRS 1023-EZ Eligibility Quiz

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Will the nonprofit MOSTLY do lobbying and government relations or will want to endorse candidates? (i.e. a PAC or Super PAC or other 501(c)(4)
YESNO
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End Result = 1024-A.
Based on your answers, the nonprofit is NOT eligibile to apply using the 1023 Form.

Your answers indicate you need to become a 501(c)(4) because a "substantial" portion of your work will be lobbying or the endorsement of candidates.

Apply using the 1024-A

See https://www.irs.gov/forms-pubs/about-form-1024-a for more details.

Also file a Form 8976 - Notice of intent to operate as a c4

See https://www.irs.gov/charities-non-profits/electronically-submit-your-form-8976-notice-of-intent-to-operate-under-section-501c4 for more details.

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Are you starting a business league, chamber of commerce, board of tourism or a trade association?
YESNO
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Are you starting a country club, recreational club or social club that serves a small group of members who have exclusive use of resources?
YESNO
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Are you starting an agricultural or horticultural producers organization? These groups preserve the existence of a traditional ag product or focus on production efficiency. For example, an association of heritage chicken breeders; society for the preservation of heirloom fruits
YESNO
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End Result = 1024
Based on your answers, the nonprofit is NOT eligibile to apply using the 1023.

Your answers indicate you are not a public charity and instead likely need to become a:
- 501(c)(5) labor / agriculture / horticulture assocaitions
- 501(c)(6) business or trade associations
- 501(c)(7) recreational / social clubs

Apply for income tax-exemption using the 1024

See https://www.irs.gov/forms-pubs/about-form-1024 for more details.
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Is the nonprofit applying for exemption a church, mosque, temple, synagogue, or other similar religious house of worship?(this does not apply to a ministry or faith based nonprofit - the question is a house of worship with regular services)
YESNO
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Will the nonprofit invest over 5% of it's assets into private investments? For example: securities, private equity funds, or other funds NOT publicly traded.
YESNO
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Will the nonprofit become business partners with for-profit entities or individual taxpayers? (This includes arrangements that are treated as partnerships for federal tax purposes. It means *legal* business partnership, not the feel-good nonprofit "partners" you might have sponsor a charity event or vendors you simply purchase services from)
YESNO
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Will the nonprofit send money to foreign countries? Or has on-the-ground international programs?This isn't asking if you have international board members - only if you send resources to other countries.
YESNO
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Where is the nonprofit incorporated?
United States & territories
Foreign Country
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Has your nonprofit ever had income tax exemption before?
No, we have never applied for IRS tax exemption before
No, we used to be a for-profit and are now seeking tax exemption as a nonprofit
Yes, we used to be a 501(c)(__) and lost our status due to not filing our 990 3 years in a row
We used to be a 501(c)(3) but were revoked because the IRS investigated us
Yes, we used to be a 501(c)(__) and want to become a 501(c)(3) now
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What kind of entity is this nonprofit?
Nonprofit corporation or nonprofit trust
Nonprofit LLC (limited liability company)
For-profit corporation, For-profit LLC, etc.
We formed a for-profit corporation or LLC but want to change to tax-exempt now
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Where is the nonprofit's mailing address?
United States & territories
Foreign Country
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The 1023-EZ application is for small, simple nonprofits. If you're a small nonprofit you might qualify.

What's not a small, simple, nonprofit?

The following types of "big" nonprofits cannot use the 1023-EZ form. Please review this list. If any of these are you, you must file the full form 1023.

Schools / Higher Education:

Schools (grade school, middle, or high school, private or public)

Colleges

Universities

Agricultural research organizations associated with universities

Educational cooperative service investment organizations

Hospitals / Health Care Insitutions

Hospitals (required to be licensed by the state)

Hospital Cooperative Service Organizations

Hospital affiliated medical research facilities

Health Maintenance Organizations (HMO)

Accountable Care Organizations (ACO)

Consumer Credit Counseling Organizations

Orgs that exist to provide consumer credit counseling

Mortgage foreclosure assistance organizations

Consumer debt consolidation or debt negotiations organizations

Others:

Consumer safety / public safety product testing organizations

Organizations that sell carbon credits or carbon offsets

Organizations that host one or more Donor Advised Funds

Private Operating Foundations (generally associated with a single corporation who supplies all their funding)

Qualified charitable risk pools for 501c3 members

If you're here, probably none of these apply to you. These are large orgnaizations usuing formed by big in house lawyers or lawyers in big law firms.

So, let's ask a few more questions to see if your small nonprofit qualifies...
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The 1023EZ specifically, limits the financial size of applicant. Are you a small organization?Not sure? Say yes and we'll ask a few more questions
YESNO
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If you've already been doing business, has your total revenue been MORE than $50,000/yr over the past 3 years?
Yes, we've already had MORE than $50,000/yr in gross revenue
No, not yet, still under $50,000/yr in gross revenue
Not really doing business yet
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Are you REALISTICALLY going to bring in total revenue MORE than $50,000/year in the next 2 years?
Yes, we will for sure exceed $50,000/year in gross revenue
No, we are unlikely to get more than $50,000/year in gross revenue any time soon
I hope that we do, but have no real proof that we will exceed $50,000/year in gross revenue
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Does the nonprofit ALREADY have assets worth MORE than $250,000? (assets means cash in the bank, real estate, inventory, big equipment, etc.)
Yes, the nonprofit owns more than $250,000 worth of cash and property
No, the nonprofit does NOT own more than $250,000 in cash and property
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Nonprofits that are the successor (taking over from a prior nonprofit) or in anyway controlled by a "Suspended Entity" may not use the 1023EZ.

Suspended Entities are generally deemed terrorist organizations and aren't allowed to get charitable contributions.

If your nonprofit is related to a known terrorist group you are not allowed to use the 1023-EZ application.

The list of Suspended Entities is available by copying and pasting the link below into a new browser tab:
https://www.irs.gov/charities-non-profits/charitable-organizations/suspensions-pursuant-to-code-section-501p
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End Result = 1023 Full Form

Based on your answers, the nonprofit is NOT eligibile to apply using the 1023-EZ Form.

The IRS will need more details about your group before granting exemption, therefore the EZ is not an option for this nonprofit.

See the IRS 1023-EZ Eligibility Worksheet for more details.

Apply with the 1023 Full Form
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End Result = 1023EZ - or - Full Form

Based on your answers, the nonprofit CAN use the 1023-EZ

OR you may choose to apply with the 1023 Full Form

Know that the EZ version of the application can be seen as "less professional" by funders and major donors. But the upside is the filing fee is lower and the form is shorter with a shorter turn around time. You can choose either direction.
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