How Long is the IRS Taking to Approve Form 1023 Applications for Exemption?

Question:  If my nonprofit corporation files its IRS Form 1023 today, how long will it take before the IRS issues a letter approving the corporation as a tax-exempt Section 501(c) charitable organization?

Answer:  See the the IRS’ web page called “Where Is My Exemption Application?” to determine how far behind the IRS is in reviewing applications for tax-exemption.  We know of organizations that have received favorable IRS determination letters as quickly as six weeks and as long as two years after submitting applications for tax exemption.

2018-01-14T10:38:15-07:00October 4th, 2013|Applications for Exemption, FAQs|0 Comments

Newspaper Publication of Articles Eliminated for Maricopa & Pima Counties

Effective January 1, 2017, Arizona nonprofit corporation law was modified to eliminate the previous requirement that all new Arizona nonprofit corporations must publish their Articles of Incorporation in a newspaper approved by the Arizona Corporation Commission.  That’s the good news.  The bad news is that the publication requirement will continue for all Arizona nonprofit corporations that have a known place of business in a county other than Maricopa or Pima.

DOL Proposed Overtime Reforms Impacts Nonprofits

National Council of Nonprofits:  “The U.S. Department of Labor has proposed sweeping new regulations designed to expand overtime protections for millions of workers employed by nonprofits, for-profits, and governments. The draft regulations, which will not go into effect (if at all) until after a period of public comment and analysis, would more than double the minimum salary level that white-collar employees must be paid (from $23,660 to $50,400) to exempt them from overtime pay of time and half of wages for hours worked in excess of 40 in any week. The Labor Department is also proposing raising the minimum salary level for ‘highly compensated employees’ from $100,000 to over $120,000 per year, and seeking comments on whether the government should establish a mechanism for automatically raising these salary levels in the future.  The National Council of Nonprofits encourages all nonprofits to conduct a mission-based analysis of these proposed regulations.

To learn more download the National Council of Nonprofits’ white paper called “DOL Proposed Overtime Reforms and the Impact on Nonprofits.”

2019-05-11T17:53:45-07:00September 26th, 2015|Employment|0 Comments

Starting a Charity? Here’s What to Do, and What Not to Do

Wall St. Journal:  “Underestimating paperwork and placing relatives on the board are among the bungles.  People who are passionate about a cause typically have several options. They can volunteer their time. They can donate money to a charitable organization.  Or, if they are especially passionate and ambitious, they can start a charity. . . . Here are four common mistakes people make when they start a charity—and how to avoid them:”

2018-01-14T10:38:13-07:00September 20th, 2015|Start Up Issues|0 Comments

Criminals Test Stolen Credit-Card Numbers on Charity Websites

The Chronicle of Philanthropy:  “Criminals are using poorly protected charity websites to test the validity of stolen credit-card numbers, cybersecurity experts said this week, costing some groups thousands of dollars. Simplified online donation pages make it easy for people to give — but also serve as prime testing ground for credit-card thieves.  ‘There’s a giant target painted on the industry’s back that is very advantageous for credit-card thieves,’ said Kevin Conroy, chief product officer at GlobalGiving.  Although not a new problem, it is now “near universal,” said Matt Holford, chief technology officer at”

2015-09-26T08:40:14-07:00September 17th, 2015|Charity News|0 Comments

Tax Exemptions Protect Religious Freedom

Washington Post:  “Instead of asking whether churches and religious organizations deserve to be tax-exempt, we should ask why governments should be able to tax them at all. Taxation, after all, involves interference by the state, and in a free society such interference needs to be justified.  The power to tax involves the power to destroy, as Daniel Webster argued in the Supreme Court nearly two centuries ago. While our government does have the right to levy taxes, it’s only because ‘We the People’ have authorized it to do so — in order to raise the funds needed to provide for the common good. But should we give our government this “power to destroy” over churches and religious institutions?

2015-09-26T08:34:54-07:00September 15th, 2015|Religious Institutions|0 Comments

Tax Exemptions for Religious Institutions: A Primer

Washington Post:  “Today, the IRS’s requirements for any group seeking tax-free status are relatively simple. The organization must be set up and operated “exclusively for religious, educational, scientific, or other charitable purposes,” its earnings shouldn’t benefit private individuals, it shouldn’t attempt to influence legislation or intervene in political campaigns, and its purpose and activities may not be illegal or violate fundamental public policy. The current IRS tax guide states that churches automatically qualify for federal income tax exemption under rule 501(c)(3) without even needing to apply. . . . But recent developments may mean things are about to change.”

2018-01-14T10:38:13-07:00September 14th, 2015|Religious Institutions|0 Comments

Executive Compensation – The Legal Issues

Nonprofit Law Blog:  “Determining the appropriate amount of compensation to pay an executive is one of the most important decisions a board is asked to make. Board members must balance budgetary concerns with the need to find a qualified candidate. Traditionally, it was not uncommon for nonprofits to expect executives to work for significantly less than they might earn elsewhere because of their passion for the organization’s mission. However, that’s a poor business strategy to rely on for recruiting or retaining the right person for the most pivotal position to the organization’s success.”

Read the entire article on this very important topic.

2018-01-14T10:38:13-07:00September 10th, 2015|Employment, Legal Issues|0 Comments

First Church of Cannabis Gets 501(c)(3) Tax Exemption from IRS

USA Today:  “Emotions appeared to be sky high at the newly formed First Church of Cannabis after the Internal Revenue Service granted it nonprofit status.  The designation means donors can deduct gifts to the church on their federal tax returns if they itemize and the church is eligible for a property-tax exemption in Indiana. The organization has raised $10,905 in a solicitation but has not found a home yet.  “What a GLORIOUS DAY it is folks,” the founder and grand poohbah, Bill Levin, wrote May 26 in a Facebook post announcing the church’s IRS approval as 501 (c) (3) charitable organization.

2018-01-14T10:38:13-07:00June 6th, 2015|Charitable Organizations, Charity News, IRS News|0 Comments