IRS Tax Status

by Cynthia M. Adams, CEO, GrantStation.com

If you already have your 501(c)(3) IRS tax status, keep copies close at hand as you will need to attach a copy with most grant proposals.

If you do not have an IRS tax status, then you need to get one. In order to apply to the federal government for a 501(c)(3) designation, you will need to accomplish the following:

1. Choose an available business name that meets the requirements of state law.
2. File formal paperwork, usually called "articles of incorporation," and pay a small filing fee (typically under $100).
3. Create corporate "bylaws," which set out the operating rules for your nonprofit corporation.
4. Appoint the initial Board of Directors. (In some states you must choose your initial directors before you file your articles because you must list their names in the document.)
5. Hold the first meeting of the Board of Directors.
6. Obtain licenses and permits that may be required for your corporation.

To apply for the IRS tax exemption, you must complete IRS Form 8718, User Fee for Exempt Organization...