You can work with Free For Charity before the IRS recognizes your organization: that is what the Pre-501(c)(3) application is for. This page explains the usual path to 501(c)(3) status, which IRS form to file, how fiscal sponsorship fits in, and what you can do with us while you wait.
The usual path to 501(c)(3)
- Incorporate as a nonprofit in your state. You file articles of incorporation with your state, usually through the Secretary of State. The exact legal name on that filing is what goes in the application’s legal name field.
- Get an EIN from the IRS. It is free and takes minutes online: apply for an EIN online (IRS) (opens in a new tab). Never pay a website to get one for you.
- Adopt bylaws and hold an organizing board meeting. Bylaws set out how your board works. Record the meeting in minutes; the IRS and grantmakers may ask to see them. Our board requirements page explains the three officers every application asks for.
- File Form 1023 or Form 1023-EZ with the IRS for federal tax-exempt status (see below).
- Keep your status once you have it. Recognized charities file an annual return; for most small charities that is the free 990-N e-Postcard. Missing three years in a row means automatic revocation. See the IRS 990-N filing guide.
Form 1023 or Form 1023-EZ?
Two IRS forms grant federal tax exemption. Form 1023-EZ is a short online form for small organizations: generally those that expect under $50,000 a year in gross receipts, have under $250,000 in total assets, and pass the eligibility worksheet in the form’s instructions. Form 1023 (the long form) is required for everyone else, and it gives you a more thorough foundation if you expect to grow.
Both are filed online and carry an IRS user fee; check the IRS for the current amount. A 1023-EZ is often decided within weeks, while the long form can take several months. Read the IRS pages before you choose: About Form 1023-EZ (opens in a new tab) and About Form 1023 (opens in a new tab).
What you can do with FFC while you wait
- Apply now on the Pre-501(c)(3) application. You don’t have to wait for your determination letter.
- No EIN yet? On the pre-501(c)(3) application only, you may enter NONE in the EIN field, and we can help you get one.
- Your Candid profile, Zeffy donation form and Idealist page are optional on this form, because most groups cannot set them up before the IRS recognizes them.
- When your IRS determination letter arrives, let us know through our contact page so we can update your record.
Fiscal sponsorship
A fiscal sponsor is an existing 501(c)(3) that lets your project operate under its tax-exempt status, so donors can give tax-deductibly before you have your own. Here is how we work with sponsored projects:
- We work through the sponsor. The sponsoring 501(c)(3) applies on the 501(c)(3) application and confirms the project is officially theirs. That isn’t a formality: the Microsoft 365 and Google Workspace nonprofit grants attach to the sponsor’s 501(c)(3), so the sponsor has to be the applicant of record.
- Pursuing your own 501(c)(3) as well? Then your project applies on this Pre-501(c)(3) application.
- Corporate fiscal sponsors (such as Tides, Open Collective or Players Philanthropy Fund) and franchise or national-affiliate chapters (posts, lodges and chapters): please talk with us before applying. Our mission is building independent charities, so these arrangements need a conversation first.
- Only considering fiscal sponsorship? Talk with us first. We’ll help you weigh independence against speed.