Form 1023-EZ: A Simplified Solution for Nonprofit Status

Form 1023-EZ is a simplified version of the standard Form 1023, designed to help smaller nonprofits apply for tax-exempt status under Section 501(c)(3) of the Internal Revenue Code. It’s a faster, easier option for organizations with straightforward operations and limited budgets, cutting down on paperwork while still meeting IRS requirements.

This form is specifically for nonprofits with projected annual gross receipts of $50,000 or less and total assets under $250,000. If your nonprofit exceeds these limits or has more complex activities, the full Form 1023 is required. For smaller organizations, however, Form 1023-EZ can save time and resources, helping them get started without unnecessary hurdles.

Not every nonprofit is eligible to file Form 1023-EZ. Groups like churches, schools, and hospitals are excluded because their activities require a closer review by the IRS. To determine eligibility, applicants must complete an IRS checklist that confirms their organization meets the criteria for this simplified application.

The form itself is straightforward. You’ll need to provide basic details like your Employer Identification Number (EIN), copies of your governing documents (such as your articles of incorporation), and a summary of your mission and planned activities. While the requirements are less detailed than the standard form, you must still certify that your organization complies with all rules for 501(c)(3) nonprofits.

Form 1023-EZ is a great option for small nonprofits looking to establish tax-exempt status quickly and efficiently. It simplifies the process, letting you focus on your mission instead of paperwork. As long as you meet the eligibility requirements and fill out the form accurately, it’s a practical way to gain the benefits and recognition that come with 501(c)(3) status.