If you’re starting a nonprofit to support a good cause in your community, there’s a fair chance it will be except from taxes, allowing you to do even more with your funding if you follow the correct filing process. There are several steps to complete the process of 501(c)(3) application, including:

1. Make sure your nonprofit’s mission qualifies for tax-exempt status

2. File to be a nonprofit in the State of Florida

3. Get an EIN from the Internal Revenue Service (IRS)

4. File Form 1023 or 1023-EZ and get approval

Ready to start making a difference through nonprofit work? Here’s a breakdown of everything you need to know to fill out your 501(c)(3) application to receive tax-exempt status in Florida.

Print this checklist for helpful reference as you complete your application.

Benefits of Tax-Exempt Status

Why does the government allow certain organizations to be tax-exempt? Put simply, organizations that are granted this status are those that provide public benefit. They are providing services to the public that would otherwise need to be funded by the government.  

The benefits for the nonprofits include no federal income tax, allowing donors to deduct donations from their taxes, eligibility for grants, sales and property tax exemptions and lower postage rates. It also creates a sense of trust and credibility for the organization in the community.  

Step 1: Check Your Eligibility 

According to the IRS, your organization must “be organized and operated exclusively for exempt purposes set forth in section 501(c)(3)” to be tax exempt. This typically includes: 

• Charities 

• Religious Groups 

• Educational Programs

• Scientific Research 

• Literary/Arts Causes 

You can read the full list of exempt organization types from the IRS here. It’s important to make sure your nonprofit meets these key criteria to avoid delays or rejection in your tax-exempt status later. 

Step 2: File Your Articles of Incorporation 

Now that you have your mission clearly defined, it’s time to file Articles of Incorporation with the Florida Department of State. You will need a name that is unique in the state (you can search the records on Sunbiz to confirm), a board of directors with at least three members and a $35 filing fee plus $35 for the designation of a registered agent. You may also need to pay additional fees for certified copies of the documents.  

What’s Included in Your Articles of Incorporation 

1. The name of your organization 

2. A purpose clause (which fits within the IRS’s qualifications for a nonprofit). 

3. A registered agent and office with a physical address to receive legal documents on behalf of the nonprofit. 

4. An incorporator (the person filing the articles). 

5. Duration of the organization (in many cases, it is listed as “perpetual”). 

6. A dissolution clause (explains what will happen to your assets if the nonprofit is shut down).  

It typically takes one to two business days to get your Articles approved when filing online and longer (five to 10 days plus mailing time) when filing by mail. Review these instructions from the Florida Department of State for more information about how to file your Articles of Incorporation. 

Step 3: Obtain an Employer Identification Number

Now that your nonprofit is official with the state, the next step toward your 501(c)(3) application is getting an Employer Identification Number (EIN) with the IRS. This quick (and free) process designates a number for your nonprofit, similar to a Social Security number. 

Step 4: Fill Out IRS Form 1023-EZ or 1023 

Now that your nonprofit is official with both the state and the IRS, it’s finally time to fill out IRS Form 1023-EZ  or Form 1023 for your 501(c)(3) status on pay.gov.  Which form you’ll file depends on the size and complexity of your nonprofit.

You can review these instructions from the IRS to determine whether you qualify for the streamlined EZ form. It’s always a good idea to check with an accountant to confirm you are compliant with all the requirements. 

To file either form, you’ll need: 

• A straightforward description of your nonprofit’s mission and programs 

• A list of your board members 

• Your budget, including your projected income and expenses for the next three years 

• Organizing documents for your nonprofit, such as your bylaws 

Once you apply, it can take two to four weeks for Form 1023-EZ approval and three to six months for Form 1023. You might receive a request for clarification before you get approval.  

The Finish Line: Earning Your Tax-Exempt Status

Finally, the IRS will send you a determination letter. Congratulations! Your organization is officially tax-exempt. Be sure to keep a copy readily available in your records. You will also need to maintain compliance for tax-exempt nonprofits (such as avoiding political endorsements) and file IRS Form 990 every year.  

If you are filing for tax-exempt status in Georgia or another state, the process is largely the same with some slightly different fees and requirements. Be sure to review the requirements for your state to ensure compliance. You can also read this list of frequently asked questions from the IRS for additional information on the 501(c)(3) application process. 

Call in the Experts 

If you want to start a nonprofit but are intimidated by the 501(c)(3) application process, remember that you don’t have to tackle it alone. Working with an accountant can make the process faster, easier and more manageable, leaving you with more time to do what you do best.  

At Harvard & Associates, CPA, we provide expert accounting solutions tailored to your needs, helping you save time, reduce stress and maximize your financial potential. Our team of CPAs is experienced, knowledgeable and dedicated to providing financial guidance, strategic tax planning and reliable accounting solutions. 

With offices in Tallahassee, FL and Thomasville, GA, Harvard & Associates can provide you with the bookkeeping, tax and financial services you need. Whether you're an individual, a small business or a growing enterprise, we're here to help. Call us at (850) 224-9008 or contact us online to start a long-term relationship with the local accounting expertise and service you expect. 

DISCLAIMER: This blog is for informational purposes only and does not constitute legal, financial or tax advice.