Instructions for Form 1023

(Rev. January 2020)

Application for Recognition of Exemption Under Section 501(c)(3) of the Internal 

Revenue Code

Department of the Treasury

Internal Revenue Service

Section references are to the Internal Revenue 

Code unless otherwise noted.

Contents Page

Future Developments ............ 1

What's New .................. 1

Overview of Organizations 

Described in Section 501(c)

(3) ..................... 1

General Instructions ............. 2

Answers .................... 2

Purpose of Form ............... 3

What To File ................. 3

When To File ................. 4

Filing Assistance ............... 4

Signature Requirements .......... 4

Authorized Representative ........ 4

Public Inspection ............... 4

Foreign Organizations ........... 5

Specific Instructions ............. 6

Part I. Identification of Applicant ..... 6

Part II. Organizational Structure ..... 6

Part III. Required Provisions in 

Your Organizing Document ..... 7

Part IV. Your Activities ........... 8

Part V. Compensation and Other 

Financial Arrangements ...... 10

Part VI. Financial Data .......... 11

Part VII. Foundation 

Classification ............. 13

Part VIII. Effective Date .......... 15

Part IX. Annual Filing 

Requirement ............. 15

Part X. Signature .............. 16

Schedule A. Churches .......... 16

Schedule B. Schools, Colleges, 

and Universities ........... 17

Schedule C. Hospitals and 

Medical Research 

Organizations ............. 18

Schedule D. Section 509(a)(3) 

Supporting Organizations ..... 20

Schedule E. Effective Date ....... 21

Schedule F. Low-Income 

Housing ................ 22

Schedule G. Successors to Other 

Organizations ............. 22

Schedule H. Organizations 

Providing Scholarships, 

Fellowships, Educational 

Loans, or Other Educational 

Grants to Individuals and 

Private Foundations 

Requesting Advance 

Approval of Individual Grant 

Procedures .............. 22

Appendix A: Sample Conflict of 

Interest Policy ............. 25

Appendix B: States With Statutory 

Provisions Satisfying the 

Requirements of Internal 

Contents Page

Revenue Code Section 

508(e) .................. 27

Appendix C: Glossary of Terms .... 29

Appendix D: National Taxonomy of 

Exempt Entities (NTEE) 

Codes ................. 37

Index ..................... 40

Note. Keep a copy of the completed 

Form 1023 for your permanent records.

Future Developments

For the latest information about 

developments related to Form 1023 and 

its instructions, such as legislation 

enacted after they were published, go to 

IRS.gov/Form1023.

Reminder

Don't include social security numbers 

on publicly disclosed forms. Because 

the IRS is required to disclose approved 

exemption applications and information 

returns, don't include social security 

numbers on this form. Documents subject 

to disclosure include supporting 

information filed with the form and 

correspondence with the IRS about the 

filing.

Phone Help

If you have questions and/or need help 

completing Form 1023, please call 

877-829-5500. This toll-free telephone 

service is available Monday through 

Friday.

Email Subscription

The IRS provides a subscription-based 

email service for tax professionals and 

representatives of tax-exempt 

organizations. We send subscribers 

periodic updates regarding exempt 

organization tax law and regulations, 

available services, and other information. 

To subscribe, visit IRS.gov/Charities.

What's New

Organizations requesting recognition of 

tax-exempt status under section 501(c)(3) 

must complete and submit their Form 

1023 (or Form 1023-EZ, if eligible) 

applications electronically (including 

paying the correct user fee) using 

Pay.gov.

How To Get Forms and 

Publications

Internet. You can access the IRS website 

24 hours a day, 7 days a week, at IRS.gov 

to do the following.

• Download forms, instructions, and 

publications.

• Order IRS products online.

• Research your tax questions online.

• Search publications by topic or 

keyword.

• Use the online Internal Revenue Code, 

regulations, or other official guidance.

• View Internal Revenue Bulletins (IRBs) 

published since 1995.

• Sign up at IRS.gov/Charities-NonProfits to receive local and national tax 

news by email.

Tax forms and publications. You can 

download or print all of the forms and 

publications you may need at IRS.gov/

FormsPubs. Otherwise, you can go to 

IRS.gov/OrderForms to place an order 

and have forms mailed to you. You should 

receive your order within 10 business 

days.

Overview of Organizations 

Described in Section 

501(c)(3)

How To Request Recognition of 

Tax-Exempt Status Under 

Section 501(c)(3)

Section 501(c)(3) describes organizations 

organized and operated exclusively for 

religious, charitable, scientific, testing for 

public safety, literary, or educational 

purposes, or to foster national or 

international amateur sports competition, 

or for the prevention of cruelty to children 

or animals. Unless an exception applies, 

an organization must file Form 1023 or 

Form 1023-EZ (if eligible) to obtain 

recognition of exemption from federal 

income tax under section 501(c)(3). You 

can find information about eligibility to file 

Form 1023-EZ at IRS.gov/Charities.

Organizations not required to 

obtain recognition of exemption. The 

following types of organizations may be 

considered tax exempt under section 

501(c)(3) without filing Form 1023 (or 

Form 1023-EZ).

• Churches, including synagogues, 

temples, and mosques.

Feb 03, 2020 Cat. No. 17132z
• Integrated auxiliaries of churches and 

conventions or associations of churches.

• Any organization that has gross 

receipts in each tax year of normally not 

more than $5,000. For more information 

on gross receipts exceptions, go to 

IRS.gov/Charities.

Even though these organizations aren't 

required to seek recognition of exemption, 

they may choose to file Form 1023 (or 

Form 1023-EZ, if eligible) to receive a 

determination letter stating they are 

recognized as exempt under section 

501(c)(3) status. The determination letter 

will also state whether an organization 

must file annual information returns or 

notices and will specify whether 

contributions to that organization are tax 

deductible.

Requirements for Tax-Exempt 

Status Under Section 501(c)(3)

To qualify for exemption under section 

501(c)(3), an organization must be 

organized and operated exclusively for 

one or more exempt purposes.

Organized. An organization must be 

organized as a corporation, a limited 

liability company (LLC), an 

unincorporated association, or a trust. 

Its organizing document (corporate 

articles of incorporation, LLC articles of 

organization, articles of association or 

constitution of an unincorporated 

association, or trust agreement or 

declaration of trust) must limit the 

organization's purpose(s) and 

permanently dedicate its assets to exempt 

purposes.

Operated. An organization described in 

section 501(c)(3) must be operated to 

further one or more of the exempt 

purposes stated in its organizing 

document. Certain other activities are 

prohibited or restricted, including, but not 

limited to, the following activities. A 

section 501(c)(3) organization must:

• Absolutely refrain from participating in 

the political campaigns of candidates for 

local, state, or federal office;

• Ensure its assets and earnings don’t 

unjustly enrich board members, officers, 

key management employees, or other 

insiders;

• Not further non-exempt purposes (such 

as purposes that benefit private interests) 

more than insubstantially;

• Not operate for the primary purpose of 

conducting a trade or business that isn’t 

related to its exempt purpose(s);

• Not engage in activities that are illegal 

or violate fundamental public policy; and

• Limit its legislative activities.

Legislative and political campaign intervention. Section 501(c)(3) denies 

exemption to an organization if a 

substantial part of its activities is 

attempting to influence legislation or if it 

directly or indirectly participates or 

intervenes in any political campaign on 

behalf of (or in opposition to) any 

candidate for elective public office. These 

issues are described in more detail in the 

instructions for Part IV, lines 5 and 6.

Public Charities and Private 

Foundations

Every organization described in section 

501(c)(3) is classified as a private 

foundation unless it qualifies for one of 

the public charity exceptions. For some 

organizations, the primary distinction 

between a public charity and a private 

foundation is its sources of financial 

support.

Public charities. The following section 

501(c)(3) organizations are classified as 

public charities.

• Organizations that are public charities 

based upon their activities (without regard 

to their sources of support), such as 

churches, schools, hospitals, medical 

research organizations, and cooperative 

hospital service organizations and 

agricultural research organizations 

(sections 509(a)(1) and 170(b)(1)(A)(i), 

(ii), (iii), and (ix)).

• Organizations that normally receive 

substantial support from grants, 

governmental units, and/or contributions 

from the general public (sections 509(a)(1) 

and 170(b)(1)(A)(iv) and (vi)).

• Organizations that normally receive 

more than one-third of their support from 

contributions, membership fees, and 

gross receipts from activities related to 

their exempt functions, and not more than 

one-third of their support from gross 

investment income and net unrelated 

business income (section 509(a)(2)).

• Organizations that support other public 

charities (supporting organizations) 

(section 509(a)(3)).

• Organizations that test for public safety 

(section 509(a)(4)).

Private foundations. Section 501(c)(3) 

organizations that don’t fit into any of the 

foundation classifications above are 

private foundations. Private foundations 

are further classified as nonoperating 

private foundations or private operating 

foundations (section 4942(j)(3)).

Nonoperating private foundations. 

Nonoperating private foundations 

generally accomplish their exempt 

purpose by making grants and don’t 

otherwise engage directly in charitable 

activities.

Private operating foundations. A 

private operating foundation actively 

conducts exempt programs. Private 

operating foundations are subject to more 

favorable rules than other private 

foundations in terms of charitable 

contribution deductions and attracting 

grants from private foundations. In order to 

be classified as a private operating 

foundation, an organization must meet 

certain support tests. Search for “private 

operating foundations” at IRS.gov for more 

information.

Key distinctions between public charities and private foundations. 

Foundation classification is important 

because different tax rules apply to the 

operations of each entity. For more 

information on the different rules, see 

IRS.gov/Charities-Non-Profits/EOOperational-Requirements-PrivateFoundations-and-Public-Charities.

Foundation classification has 

nothing to do with the name of the 

organization. Many organizations 

that aren't private foundations include the 

word “foundation” in their names.

State Registration Requirements

Tax exemption under section 501(c)(3) is 

a matter of federal law. After receiving 

federal tax exemption, an organization 

may also be required to register with one 

or more states where it holds assets or 

where it will solicit contributions. The 

organization may also need to seek 

exemption from state taxes. The National 

Association of State Charity Officials 

(NASCO) maintains a website that 

provides informational links to the various 

states for these purposes. It can be 

accessed at www.nasconet.org .

General Instructions

Social Security number. Don't enter 

social security numbers on this form or 

any attachments because the IRS is 

required to disclose approved exemption 

applications and information returns. 

Documents subject to disclosure include 

supporting information filed with the form 

and correspondence with the IRS related 

to the application.

“You” and “us.” Throughout these 

instructions and Form 1023, the terms 

“you” and “your” refer to the organization 

that is applying for tax-exempt status. The 

terms “us” and “we” refer to the IRS.

Definitions. Terms in bold type in Form 

1023 are defined throughout these 

instructions and in Appendix C.

Answers

Form 1023 asks you to answer a series of 

questions and provide information to 

assist us in determining if you meet the 

requirements for tax exemption under 

section 501(c)(3). Answer questions 

completely. If you believe you previously 

answered the question, you may refer to 

your previous answer.

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-2- Instructions for Form 1023
Your answers must provide 

sufficient detail about your past, 

present, and planned activities to 

demonstrate that you're described in 

section 501(c)(3). We won't be able to 

recognize you as tax exempt based on a 

mission statement (such as providing 

assistance to the poor) unless you also 

describe the activities that further 

accomplish your mission. We need to 

understand the specific activities you will 

undertake to accomplish your section 

501(c)(3) exempt purpose(s).

Financial data. Financial data, whether 

budgeted or actual, should be consistent 

with other information presented in your 

application.

For example, if you're requesting public 

charity classification under one of the 

public support tests, your financial data 

should show contributions from the public 

or receipts from providing exempt 

services. Budgeted financial data should 

be prepared based upon your current 

plans. We recognize that your actual 

financial results may vary from the 

budgeted amounts.

Past, present, and planned activities.

Many items on Form 1023 are written in 

the present tense; however, base your 

answers on your past, present, and 

planned activities.

Language and currency requirements.

Prepare Form 1023 and attachments in 

English. Provide an English translation if 

the articles of organization, bylaws, or any 

other attachments are in any other 

language.

Report financial information in U.S. 

dollars (specify the conversion rate used). 

Combine amounts from within and outside 

the United States and report the total for 

each on the financial statements.

Purpose of Form

Completed Form 1023 required to apply for recognition of section 501(c)(3) 

exemption. Use Form 1023, including 

the appropriate user fee, to apply for 

recognition of exemption from federal 

income tax under section 501(c)(3). If 

approved, we will issue a determination 

letter that describes your tax-exempt 

status and your qualification to receive 

tax-deductible charitable contributions. 

The determination letter will also show 

your specific foundation classification 

(described earlier) and annual filing 

requirements.

Form 1023-EZ. You may be 

eligible to file Form 1023-EZ, 

Streamlined Application for 

Recognition of Exemption Under Section 

501(c)(3) of the Internal Revenue Code, 

which is a streamlined version of Form 

1023. Complete the Form 1023-EZ 

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Eligibility Worksheet in the Instructions for 

Form 1023-EZ to determine if you're 

eligible to file Form 1023-EZ. You can visit 

IRS.gov/Charities for more information on 

application requirements.

Leaving a group exemption. A 

subordinate organization under a group 

exemption can use Form 1023 to leave the 

group and obtain individual exemption. If 

you're a subordinate organization and 

wish to leave a group, you should notify 

your parent organization of your intention 

to leave the group ruling before filing Form 

1023.

Application for Reinstatement 

of Exempt Status and 

Retroactive Reinstatement

If your tax-exempt status was 

automatically revoked for failure to file a 

return or notice 3 consecutive years, you 

must apply to have your tax-exempt status 

reinstated. You must complete and submit 

Form 1023, including Schedule E (or, if 

eligible, Form 1023-EZ), and pay the 

appropriate user fee.

If your application is approved, your 

date of reinstatement will generally be the 

filing date of the application, unless you 

qualify for reinstatement of exemption 

retroactive to your date of automatic 

revocation. See Rev. Proc. 2014-11, 

2014-03 I.R.B. 411 for details, including 

additional requirements for retroactive 

reinstatement.

Requesting Expedited Review

We generally review applications for 

exemption in the order we receive them. 

We only expedite processing of an 

application where a written request 

presents a compelling reason for 

processing the application ahead of 

others. This does not mean your 

application will be immediately approved 

or denied. Circumstances generally 

warranting expedited processing include 

the following.

• A grant to the applicant is pending and 

the failure to secure the grant may have an 

adverse impact on the organization's 

ability to continue operations.

• The purpose of the newly created 

organization is to provide disaster relief to 

victims of emergencies such as floods and 

hurricanes.

• An IRS error has caused delays in 

review of the application.

User Fee

The law requires payment of a user fee 

with each application. You must pay this 

fee through Pay.gov when you file Form 

1023.

Payments can be made directly from 

your bank account or by credit or debit 

card. You won't be able to submit Form 

1023 without paying the correct fee.

User fee amounts are listed in Rev. 

Proc. 2020-5, updated annually. For the 

current Form 1023 user fee, go to Rev. 

Proc. 2020-5, 2020-1 I.R.B. 241, at 

IRS.gov/Charities-Non-Profits/User-Feesfor-Tax-Exempt-and-Government-EntitiesDivision. You can also call 877-829-5500.

Group Exemption

Don't use Form 1023 to apply for a group 

exemption. We may issue to a central 

organization a group exemption that 

recognizes on a group basis the 

exemption of subordinate organizations 

on whose behalf the central organization 

has applied. See Pub. 557 for information 

on how to apply for a group exemption.

What To File

All applicants, unless otherwise noted, 

must complete Parts I through X of Form 

1023, plus any required schedules and 

attachments.

The following organizations must 

complete additional schedules to Form 

1023.

IF you’re

THEN you 

must 

complete 

Schedule 

A church ........... A

A school, college, or 

university .......... B

A hospital or medical 

research organization . . C

A section 509(a)(3) 

supporting 

organization ........ D

Filing this application more 

than 27 months from your 

date of formation and/or 

applying for reinstatement 

of tax-exempt status after 

being automatically 

revoked ........... E

A low-income housing 

organization ........ F

A successor to other 

organizations ........ G

An organization providing 

scholarships, fellowships, 

educational loans, or other 

educational grants to 

individuals and/or a private 

foundation requesting 

approval of individual grant 

procedures ......... H

Attachments To Form 1023

A complete application will include one or 

more documents in addition to Form 1023. 

Instructions for Form 1023 -3-
Pay.gov can accommodate only one 

uploaded file. Before submitting Form 

1023, consolidate your attachments into a 

single PDF file. Combine your 

attachments in the following order.

• Organizing document (required).

• Amendments to your organizing 

document in chronological order (required 

if applicable).

• Bylaws or other rules of operation and 

amendments (if adopted).

• Form 2848, Power of Attorney and 

Declaration of Representative (if 

applicable).

• Form 8821, Tax Information 

Authorization (if applicable).

• Supplemental responses (if your 

response won't fit in the provided text 

field) and any additional information you 

want to provide to support your request 

(optional).

• Expedite request (optional).

Put your name and EIN on each page 

of your supplemental response and 

identify the part and line number to which 

the information relates.

When To File

Generally, if you file Form 1023 within 27 

months after the end of the month in which 

you were legally formed, and we approve 

your application, the effective date of your 

exempt status will be your legal date of 

formation.

If you don’t file Form 1023 within 27 

months, the effective date of your exempt 

status will be the date you filed Form 

1023. For exceptions and special rules, 

see Part VIII. Effective Date and 

Schedule E.

How to File

As of January 31, 2020, the IRS requires 

that Form 1023 applications for 

recognition of exemption be submitted 

electronically online at Pay.gov. The IRS 

will provide a 90-day grace period during 

which it will continue to accept paper 

versions of Form 1023. To submit Form 

1023, you must:

1. Register for an account on 

Pay.gov.

2. Enter "1023" in the search box and 

select Form 1023.

3. Complete the form.

Filing Assistance

For help in completing this form or general 

questions relating to an exempt 

organization, you may access information 

on our website at IRS.gov/EO.

You may find the following publications 

available on IRS.gov helpful.

• Pub. 517, Social Security and Other 

Information for Members of the Clergy and 

Religious Workers.

• Pub. 526, Charitable Contributions.

• Pub. 557, Tax-Exempt Status for Your 

Organization.

• Pub. 598, Tax on Unrelated Business 

Income of Exempt Organizations.

• Pub. 1771, Charitable Contributions 

Substantiation and Disclosure 

Requirements.

• Pub. 1828, Tax Guide for Churches and 

Religious Organizations.

• Pub. 3079, Tax-Exempt Organizations 

and Gaming.

• Pub. 3833, Disaster Relief: Providing 

Assistance Through Charitable 

Organizations.

• Pub. 4220, Applying for 501(c)(3) 

Tax-Exempt Status.

• Pub. 4221-PC, Compliance Guide for 

501(c)(3) Public Charities.

• Pub. 4221-PF, Compliance Guide for 

501(c)(3) Private Foundations.

Signature Requirements

An officer, director, trustee, or other official 

who is authorized to sign for the 

organization must digitally sign Form 1023 

at the end of Part X. The signature must 

be accompanied by the title or authority of 

the signer and the date.

Authorized Representative

Form 2848. Upload a completed Form 

2848 if you want to authorize a 

representative to represent you regarding 

your application. An individual authorized 

by Form 2848 may not sign the application 

unless that person is also an officer, 

director, trustee, or other official who is 

authorized to sign the application.

A Centralized Authorization File 

(CAF) number isn’t required to be 

listed on Form 2848.

Form 8821. Upload a completed Form 

8821 if you want to authorize us to discuss 

your application with the person you have 

appointed on that form.

Form 8821 doesn’t authorize your 

appointee to advocate your position with 

respect to the federal tax laws; to execute 

waivers, consents, or closing agreements; 

or to otherwise represent you before the 

IRS. If you want to authorize an individual 

to represent you, use Form 2848.

After You Submit Form 1023

Unless we approve a request for 

expedited processing, we will assign and 

work your application in the order we 

received it.

No additional information needed. If 

our review shows that you meet the 

requirements for tax-exempt status under 

section 501(c)(3), we’ll send you a 

determination letter stating that you’re 

exempt under section 501(c)(3) and 

identifying your foundation classification.

CAUTION

!

Additional information needed. If we 

can’t make a determination without more 

information, we’ll write or call you. 

Examples of the types of questions we 

may ask you are available at IRS.gov/

Charities-Non-Profits/CharitableOrganizations/Exempt-OrganizationSample-Questions. If the additional 

information you provide shows that you 

meet the requirements for exemption, we'll 

send you a determination letter stating that 

you're exempt under section 501(c)(3). If 

we determine that you don't qualify for 

exemption, we will send you a letter that 

explains our position and your appeal 

rights.

Annual Return or Notice While 

Your Application Is Pending

Unless you qualify for an exception from 

the requirement to file an annual return or 

notice, your filing obligations begin as 

soon as you were formed. If you have an 

information return or tax return due while 

your Form 1023 is pending, complete the 

return, mark the “Application Pending” box 

in the heading, Item B, and submit the 

return as indicated in those instructions.

If you’re eligible to file a Form 990-N, 

e-Postcard, call 877-829-5500 and 

request to be set up to allow filing of Form 

990-N (note, it takes the IRS up to 6 

weeks to update its records before you 

can file your Form 990-N).

You can find information on return filing 

requirements and exceptions in Pubs. 557 

and 598 and in the instructions to the 

annual returns listed in Figure 1.

You may also be required to file 

other returns, such as 

employment tax returns or benefit 

plan returns, which aren't discussed here.

If a Form 990-series return is due 

while your application is pending, 

complete and submit the return 

according to Form 990-series form's 

instructions.

Public Inspection

Information available for public inspection. If we approve exempt status 

under section 501(c)(3), the following 

information that will be open for public 

inspection includes the following.

• Your complete Form 1023 and any 

supporting documents.

• All correspondence between you and 

the IRS concerning Form 1023, including 

Form 2848.

• Your determination letter.

• Annual information returns (Forms 990, 

990-EZ, or 990-PF).

• Schedule A, included with Forms 990 or 

990-EZ.

• Schedule B, included with Forms 990 or 

990-EZ, excluding the names and 

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CAUTION

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-4- Instructions for Form 1023
addresses of contributors and other 

identifying information about contributors.

• Schedule B, included with Form 

990-PF, including names, addresses, and 

other identifying information about 

contributors.

• Exempt Organization Business Income 

Tax Return (Form 990-T).

Information not available for public 

inspection. The following items won’t be 

open for public inspection.

• Any information relating to a trade 

secret, patent, style of work, or apparatus 

that, if released, would adversely affect 

you (we must approve withholding this 

information).

• Any other information that would 

adversely affect national defense (we 

must approve withholding this 

information).

• User fee payment information.

• Contributors' names and addresses 

and identifying information about 

contributors included with Forms 990 or 

990-EZ and the Schedule B filed with 

these forms.

When applying for tax-exempt status, 

you must clearly identify any information 

that isn’t open for public inspection by 

marking it as “NOT SUBJECT TO PUBLIC 

INSPECTION” and include an explanation 

of why you’re asking for the information to 

be withheld. We will decide whether to 

withhold the identified information from 

public inspection.

Making documents available for public 

inspection. Both you and the IRS must 

make the information that is subject to 

disclosure available for public inspection. 

The public may request a copy of the 

information available for public inspection 

from us by submitting Form 4506-A. The 

public may also request inspection of the 

information or a copy of the information 

directly from you.

You may post the documents required 

to be available for public inspection on 

your own website. Information returns and 

your exemption application materials must 

be posted exactly as filed with the IRS. 

You may only delete the information that 

isn’t open for public inspection.

If you post the documents on your 

website, you can give any person 

requesting copies the website where the 

documents may be found, but you don’t 

need to provide copies of the information. 

However, even if these documents are 

posted on your website, you must still 

allow public inspection without charge at 

your main office during regular business 

hours.

Documents aren’t considered available 

for public inspection on a website if the 

otherwise disclosable information is edited 

or subject to editing by a third party when 

posted. To date, the IRS hasn’t approved 

any third-party websites for posting.

See Pub. 557 for additional information 

on public inspection requirements.

Foreign Organizations

Foreign organizations are those that were 

created in countries other than the United 

States, its territories, or its possessions. 

Foreign organizations may apply for 

tax-exempt status on income earned in the 

United States in the same way that 

domestic organizations apply for exempt 

status. See Language and currency 

requirements, above.

If you’re a foreign organization applying 

for exempt status, you must complete all 

required parts of Form 1023. However, 

see the special rules below for certain 

Canadian organizations.

Contributions by U.S. residents to 

foreign organizations generally 

aren’t deductible. Tax treaties 

between the U.S. and certain foreign 

countries provide specific limited 

exceptions.

Annual returns for foreign organizations. A foreign organization that obtains 

exemption as a public charity must file an 

information return annually (Form 990 or 

Form 990-EZ). A foreign organization that 

is a private foundation must file Form 

990-PF annually. However, a foreign 

organization, other than a private 

foundation or a section 509(a)(3) 

supporting organization, may file Form 

990-N (e-Postcard) instead of Form 990 or 

Form 990-EZ when its gross receipts from 

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U.S. sources are normally $50,000 or less 

and it hasn’t conducted significant activity 

in the United States. See the Instructions 

for Form 990 and Form 990-EZ, and the 

Instructions for Form 990-PF for further 

information. A foreign organization that is 

subject to unrelated business income tax 

must file Form 990-T.

Canadian Organizations

Canadian organizations that have 

received a Notification of Registration from 

the Canada Revenue Agency (formerly 

Canada Customs and Revenue Agency), 

and whose registrations haven’t been 

revoked (“Canadian registered charities”), 

are automatically recognized in the U.S. 

as section 501(c)(3) organizations and 

aren’t required to file Form 1023. 

Canadian registered charities are also 

presumed to be private foundations. If 

you’re a Canadian registered charity and 

want to be listed as a section 501(c)(3) 

organization on IRS.gov or request 

classification as a public charity rather 

than a private foundation, mail or fax the 

information below to:

Internal Revenue Service

Exempt Organization Determinations

Room 6403

P.O. Box 2508

Cincinnati, OH 45201

(855) 204-6184

No user fee is required.

• A letter stating the organization’s 

request (listing as a section 501(c)(3) 

organization on IRS.gov or classification 

as a public charity).

Figure 1. 990 Series Forms Filed by Exempt Organizations

Type of Annual Return Who Should File

Form 990, Return of Organization 

Exempt from Income Tax

Section 501(c)(3) public charities 

Form 990-EZ, Short Form Return of 

Organization Exempt from Income Tax

Section 501(c)(3) public charities whose 

gross receipts during the year were less 

than $200,000 and total assets at the 

end of the year were less than $500,000 

Form 990-PF, Return of Private 

Foundation

Private foundations, including private 

operating foundations, regardless of 

financial status

Form 990-T, Exempt Organization 

Business Income Tax Return

Public charities and private foundations 

that have gross unrelated business 

income of $1,000 or more

Form 990-N Electronic Notice 

(e-Postcard) for Tax-Exempt 

Organizations Not Required to File Form 

990 or Form 990-EZ

Most small public charities with gross 

receipts of $50,000 or less can file a 

Form 990-N, if they choose not to file a 

Form 990 or Form 990–EZ instead.

Instructions for Form 1023 -5-
• The legal name and complete mailing 

address of the organization.

• The organization’s EIN.

• The month its tax year ends.

• The organization’s date of formation.

• A contact name and telephone number.

• The public charity status it is requesting 

(if applicable) and information 

demonstrating how it meets the 

requirements of that status (see Part VII, 

line 1, and related questions and 

schedules).

• This penalty of perjury statement:

I declare under the penalties of perjury 

that I have examined this request, 

including the accompanying documents, 

and to the best of my knowledge and 

belief, the request contains all the relevant 

facts relating to the request, and such 

facts are true, correct, and complete.

• The signature of an officer, director, 

trustee, or other authorized person.

• A copy of the organization’s Notification 

of Registration.

• Form 8833, Treaty-Based Return 

Position Disclosure Under Section 6114 or 

7701(b).

Organizations Created in U.S. 

Territories and Possessions

Organizations created in possessions and 

territories of the U.S. are generally treated 

as domestic organizations. If you were 

created in a U.S. possession or territory, 

you must complete all required parts of 

Form 1023 to apply for exempt status 

under section 501(c)(3).

Charitable contributions to you are 

deductible by donors if you qualify for 

exempt status under section 501(c)(3).

Annual filing requirements for an 

organization created in a U.S. territory or 

possession are similar to those outlined 

above for foreign organizations (see Rev. 

Proc. 2011-15 at IRS.gov/pub/irs-irbs/

irb11-03.pdf).

Specific Instructions

Part I. Identification of 

Applicant

Line 1a. Enter your complete name 

exactly as it appears in your organizing 

document, including amendments.

Line 1b. If you have an “in care of” name, 

enter it here; otherwise, leave this space 

blank.

Line 1c-i. Enter your complete address 

where all correspondence will be sent. If 

mail isn’t delivered to your street address 

and you have a P.O. box, list your P.O. 

box information instead of your street 

address.

For a foreign address, enter your 

province or state and foreign postal code 

where indicated.

Line 2. Employer Identification Number (EIN). You must have your own EIN. 

Enter the 9-digit EIN the IRS assigned to 

you. If you don’t have an EIN, you must 

apply for one before submitting your 

application. You can find out how to apply 

for an EIN by visiting IRS.gov and search 

for “apply for an EIN.” You may apply for 

an EIN online or by fax or mail. 

International applicants may call 

267-941-1099 (toll call).

Don’t apply for an EIN more than 

once. If you’re unsure of your EIN 

or whether you have one, call 

877-829-5500 for assistance.

Don’t use the EIN of a related or 

other organization.

Line 3. Month tax year ends. Select the 

month your tax year (annual accounting 

period) ends. Your tax year (annual 

accounting period) is the 12-month period 

on which your annual financial records are 

based.

Check your bylaws or other rules 

of operation for consistency with 

the tax year (annual accounting 

period) you enter here.

Line 4. Person to contact. Enter the 

name and title of the person you want us 

to contact if we need more information. 

The person to contact may be an officer, 

director, trustee, or other individual who is 

permitted to speak with us according to 

your bylaws or other rules of operation. 

Your person to contact may also be an 

authorized representative, such as an 

attorney, certified public accountant, or 

enrolled agent, for whom you’re submitting 

a completed Form 2848 with the Form 

1023.

Line 5. Provide a daytime telephone 

number for the contact listed on line 4.

Line 6. You may provide a fax number for 

the contact listed on line 4.

Line 7. Pay.gov will populate this field 

with the current user fee for filing Form 

1023.

Line 8. Enter your complete website 

address if you have one. Also, list any 

websites maintained on your behalf. The 

information on your website should be 

consistent with the information in your 

Form 1023.

Line 9. Officers, directors, and trustees. Enter the full names, titles, and 

mailing addresses of your officers, 

directors, and/or trustees. You may use 

the organization’s address for mailing. If 

you have more than five officers, directors, 

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or trustees, check the box provided to add 

more officer, director, and/or trustee 

information.

The person who is signing Form 1023 

must be listed within the first five entries of 

line 9.

Part II. Organizational 

Structure

You must be a corporation, limited liability 

company, unincorporated association, or 

trust to be tax exempt under section 

501(c)(3). Sole proprietorships, 

partnerships, or loosely affiliated groups of 

individuals aren’t eligible.

Line 1. Type of organization and copy 

of organizing document. Select your 

type of organization, and before 

submitting the form, upload a copy of your 

organizing document (including any 

amendments) as part of the required 

attachment.

Corporation. A corporation is an entity 

organized under a federal or state statute, 

or a statue of federally recognized Indian 

tribal or Alaskan native government.

Copy of organizing document 

(articles of incorporation and any 

amendments). A corporation’s 

organizing document is its “articles of 

incorporation. ” If you formed under state 

statute, your articles of incorporation (and 

any amendments) must show 

certification of filing. This means your 

articles show evidence that on a specific 

date they were filed with and approved by 

an appropriate state authority. The 

document must be an exact copy of what 

is on file with your state.

If you don’t have a copy of your articles 

of incorporation showing evidence of 

having been filed and approved by an 

appropriate state official, you may submit 

a substitute copy of your articles of 

incorporation. This substitute copy may be 

handwritten, typed, printed, or otherwise 

reproduced. It must be accompanied by a 

declaration, signed by an officer 

authorized to sign for you, that it is a 

complete and correct copy of the articles 

of incorporation and that it contains all the 

powers, principles, purposes, functions, 

and other provisions by which you 

currently govern yourself.

Limited liability company. A limited 

liability company (LLC) that files its own 

exemption application is treated as a 

corporation rather than a partnership.

Copy of organizing document 

(articles of organization and operating 

agreement (if adopted) and any 

amendments). Instead of articles of 

organization, an LLC’s organizing 

document is its state-approved “articles 

of organization.” If it has adopted an 

“operating agreement,” then this 

-6- Instructions for Form 1023
document is also part of its organizing 

document. If you formed under state 

statute, your articles of organization (and 

any amendments) must show certificate 

of filing. This means your articles show 

evidence that on a specific date they were 

filed with and approved by an appropriate 

state authority. The document must be an 

exact copy of what is on file with your 

state. If you don’t have a copy of your 

articles of organization showing evidence 

of having been filed and approved by an 

appropriate state official, you may submit 

a substitute copy of your articles of 

organization. This substitute copy may be 

handwritten, typed, printed, or otherwise 

reproduced. It must be accompanied by a 

declaration, signed by an officer 

authorized to sign for you, that it is a 

complete and correct copy of the articles 

of organization and that it contains all the 

powers, principles, purposes, functions, 

and other provisions by which you 

currently govern yourself.

If you are an LLC and want to be 

treated as a disregarded entity by 

a tax-exempt member, don’t file 

an exemption application.

Unincorporated association. An 

unincorporated association formed 

under state law must have at least two 

members who have signed a written 

document that creates an entity with a 

specifically defined purpose.

Copy of organizing document 

(articles of association or constitution 

and any amendments). Your organizing 

document must include the name of the 

organization, its purpose, the date the 

document was adopted, and the 

signatures of at least two individuals. If 

your copy doesn’t contain the proper 

signatures and date of adoption, you may 

submit a written declaration that states 

your copy is a complete and accurate 

copy of the signed and dated original. 

Your declaration should clearly indicate 

the original date of adoption.

Bylaws may be considered an 

organizing document only if they 

include the required elements 

listed above.

Trust. A trust may be formed by a trust 

agreement or declaration of trust. A trust 

may also be formed through a will. 

Generally, a trust must be funded with 

property, such as money, real estate, or 

personal property.

Copy of organizing document (trust 

agreement/declaration of trust or will 

and any amendments). Your trust 

agreement (and any amendments) must 

be signed by at least one trustee. If your 

trust agreement copy isn’t signed, you 

may submit a written declaration that 

states your copy is a complete and 

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accurate copy of the signed and dated 

original. Your declaration should clearly 

indicate the original date that it was 

signed. For trusts created by a will, include 

a copy of the death certificate or a 

statement indicating the date of death, 

and a copy of the relevant portions of the 

will.

If your trust agreement continues 

to provide for distributions for 

non-charitable interests, you won’t 

qualify for tax-exempt status.

Line 2. Formation date. The date you 

enter should be consistent with your 

organizing document.

• If you’re a corporation, enter the date 

that your articles of incorporation were 

filed and approved by the appropriate 

authority.

• If you’re an LLC, enter the date that the 

appropriate authority filed your articles of 

organization or other organizing 

document.

• If you’re an unincorporated association, 

enter the date that your organizing 

document was adopted by the signatures 

of at least two individuals.

• If you’re a trust (other than a trust 

formed by a will), enter the date your trust 

was funded. If your trust agreement 

provided for any non-charitable interests, 

enter the date that non-charitable interests 

expired. If you were formed by a will, enter 

the date of death or the date any 

non-charitable interests expired.

Line 3. State of formation. Enter the 

jurisdiction (for instance, the state or the 

federally recognized tribal government) 

under the laws of which you were 

incorporated or otherwise formed. This 

may not be the place in which you’re 

physically located. For example, if you’re 

physically located in New York, but 

incorporated under Massachusetts law, 

enter Massachusetts.

For purposes of completing this 

application, you’re formed under the laws 

of a foreign country if you’re not formed 

under the laws of the United States, its 

territories and possessions, federally 

recognized Indian tribal or Alaska native 

governments, or the District of Columbia.

Line 4. “Bylaws” are generally the 

internal rules and regulations of an 

organization. If you have bylaws, upload a 

current copy (including any amendments). 

Bylaws don’t need to be signed unless 

they are your organizing document as 

described in the instructions for line 1 

above.

Line 5. Successor organization. You 

are a “successor” if you:

• Took over activities previously 

conducted by another organization,

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• Took over 25% or more of the fair 

market value of the net assets of another 

organization, or

• Were established upon the conversion 

of an organization from for-profit to 

non-profit status.

If you’re a successor organization, 

complete Schedule G, Successors to 

Other Organizations.

Your predecessor organization 

may have been either a 

tax-exempt or non-exempt 

organization.

Part III. Required 

Provisions in Your 

Organizing Document

Line 1. Purpose clause. Your 

organizing document must limit your 

purposes to those described in section 

501(c)(3). Those purposes are charitable, 

religious, educational, scientific, literary, 

testing for public safety, fostering national 

or international amateur sports 

competition, and preventing cruelty to 

children or animals.

The generally accepted legal definition 

of “charitable” includes relief of the poor, 

the distressed, or the underprivileged; 

advancement of religion; advancement of 

education or science; erecting or 

maintaining public buildings, monuments, 

or works; lessening the burdens of 

government; lessening neighborhood 

tensions; eliminating prejudice and 

discrimination; defending human and civil 

rights secured by law; and combating 

community deterioration and juvenile 

delinquency. Therefore, the phrase “relief 

of the poor” in your organizing document 

properly limits your purposes.

Limiting your purposes by reference to 

section 501(c)(3) generally will be 

sufficient to meet the organizational test 

under section 501(c)(3). Your organizing 

document may also sufficiently limit your 

purpose by reference to a specific 

charitable purpose such as “relief of the 

elderly within the meaning of section 

501(c)(3).”

However, purposes listed in your 

organizing document broader than those 

listed in section 501(c)(3) may cause you 

to fail the organizational test. In that case, 

you will need to amend your organizing 

document before applying. A reference to 

section 501(c)(3) won’t ensure that your 

purposes are limited to those described in 

section 501(c)(3) if other provisions 

describing your purposes include one or 

more non-exempt purposes. The following 

is an example of an acceptable purpose 

clause.

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Instructions for Form 1023 -7-
The organization is organized 

exclusively for charitable, 

religious, educational, and 

scientific purposes under 

section 501(c)(3) of the Internal 

Revenue Code, or 

corresponding sections of any 

future federal tax code.

See Pub. 557 for further information 

and examples of how to limit your 

purposes.

Line 2. Dissolution clause. Your 

organizing document must provide for 

the permanent dedication of your assets 

to a section 501(c)(3) purpose. This 

means that if you dissolve your 

organization in the future, your assets 

must be distributed for an exempt purpose 

described in section 501(c)(3), or to the 

federal government, or to a state or local 

government, for a public purpose. In 

certain states, you may rely on state law to 

establish the permanent dedication of 

assets for exempt purposes. This is based 

on Rev. Proc. 82-2, 1982-1 C.B. 367. For 

additional information, search “Operation 

of state law” at IRS.gov.

Foreign organizations may be able to 

rely upon the applicable laws of their 

jurisdiction in a similar manner. If relying 

on a foreign law, you must provide a copy 

of the applicable law with an English 

translation.

Naming a specific organization to 

receive your assets upon dissolution will 

be acceptable only if your organizing 

document requires that the specific 

organization to be exempt under section 

501(c)(3) at the time your dissolution takes 

place and provides for a qualified 

alternative recipient if the named 

organization isn’t exempt under section 

501(c)(3) at that time.

If your organizing document states that 

your assets would be distributed to 

members or private individuals or for any 

purpose other than those provided in 

section 501(c)(3), you must amend your 

organizing document to remove such 

statements.

The following is an example of an 

acceptable dissolution clause.

Upon the dissolution of this 

organization, assets shall be 

distributed for one or more 

exempt purposes within the 

meaning of section 501(c)(3) of 

the Internal Revenue Code, or 

corresponding section of any 

future federal tax code, or shall 

be distributed to the federal 

government, or to a state or 

local government, for a public 

purpose. 

See Pub. 557 for further information 

and examples of acceptable language for 

dedication of assets in your organizing 

document.

Part IV. Your Activities

Reminder

Answer all questions in this part as they 

pertain to your past, present, and future 

activities.

Line 1. Describe completely and in detail 

your past, present, and planned activities. 

Don’t refer to or repeat the purposes in 

your organizing document or speculate 

about potential future programs. Your 

narrative description of activities should be 

thorough and accurate because we 

determine whether you qualify for section 

501(c)(3) exempt status based on the 

information in your application. You should 

describe either actual or planned 

activities. For example, if you plan to 

further educational purposes by operating 

an afterschool homework club, you would 

describe that activity rather than cite that 

you will further educational purposes. If 

you were also contemplating offering 

scholarships in the future, but currently 

have no plans to do so, then the 

scholarship activity would be speculative, 

and you should not describe it.

Some organizations (such as credit 

counseling organizations (see Part IV, 

line 8), childcare organizations (see Part 

IV, line 12), agricultural research 

organizations (see Part VII, line 1), or 

cooperative hospital service organizations 

(see Schedule C)) must meet specific 

operational requirements to qualify for 

exemption under section 501(c)(3). If 

you’re such an organization, be certain to 

include an explanation in your activity 

description of how activities you conduct 

(or don’t conduct, if the specific 

operational requirement limits permissible 

activities) satisfy those specific 

operational requirements.

For each past, present, or planned 

activity, include information that answers 

the following questions.

• What is the activity?

• Who conducts the activity?

• Where is the activity conducted?

• What percentage of your total time is 

allocated to the activity? (Combined time 

percentages should add up to 100%.)

• How is the activity funded (for example, 

donations, fees, etc.) and what 

percentage of your overall expenses is 

allocable to this activity?

• How does the activity further your 

exempt purposes?

Line 2. National Taxonomy of Exempt 

Entities (NTEE) code. An NTEE code is 

a three-character series of letters and 

numbers that generally describes a type of 

organization. Enter the code that best 

describes your organization from the list of 

NTEE codes, located in Appendix D. For 

more information and more detailed 

definitions of these codes developed by 

the National Center for Charitable 

Statistics (NCCS), visit the Urban Institute 

NCCS website at www.nccs.urban.org.

NTEE codes are also used for 

purposes other than identification 

of organizations described in 

section 501(c)(3). Therefore, all codes in 

the list don't necessarily correspond to a 

section 501(c)(3) purpose.

Line 3. If programs are limited to specific 

individuals, describe how you select or 

identify those individuals. If programs are 

available only for members, describe 

membership criteria, any membership 

dues, any different membership levels, 

and the benefit each membership level 

receives.

Line 4. Describe any business or family 

relationship between individuals who 

receive goods, services, or funds through 

your programs and any officers, directors, 

trustees, or highest compensated 

employees or independent contractors.

For purposes of this form, “highest 

compensated” employees or independent 

contractors are persons to whom you pay 

over $100,000 of compensation, 

including compensation from related 

organizations.

Line 5. You participate in a political 

campaign if you promote or oppose the 

candidacy of an individual for public office. 

Candidate debates and nonpartisan voter 

education and registration may be 

permitted. See Rev. Rul. 2007-41, 

2007-25 I.R.B. 1421 at IRS.gov/irb/

2007-25_I.R.B. 1421 and Pub. 1828 for 

more information and examples.

Organizations described in 

section 501(c)(3) are prohibited 

from supporting or opposing 

candidates for public office in any political 

campaign. If you answer “Yes,” you aren’t 

qualified for tax exemption under section 

501(c)(3) and should reconsider whether 

the filing of application Form 1023 is 

appropriate for you. See Pub 557 for a 

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-8- Instructions for Form 1023
description of other code sections under 

which you may qualify.

Line 6. You are attempting to influence 

legislation if you directly contact or urge 

the public to contact members of a 

legislative body for the purpose of 

proposing, supporting, or opposing 

legislation. You are also attempting to 

influence legislation if you advocate the 

adoption or rejection of legislation. If you 

answer “Yes,” your explanation should 

include the percentage of your total time 

and total funds spent on such legislative 

activities.

Organizations described in section 

501(c)(3) are prohibited from engaging in 

a substantial amount of legislative 

activities. Whether you’re engaged in 

substantial legislative activities depends 

on all of the facts and circumstances.

For this purpose, “legislation” includes 

action by Congress, a state legislature, a 

local council, or a similar governing body, 

with respect to acts, bills, resolutions or 

similar items (such as legislative 

confirmation of appointive offices). 

Legislation also includes action by the 

public in a referendum, ballot initiative, 

constitutional amendment, or similar 

procedure. Legislation generally doesn’t 

include actions by executive, judicial, or 

administrative bodies.

Organizations may involve themselves 

in issues of public policy without being 

engaged in legislative activity. For 

example, organizations may conduct 

educational meetings, prepare and 

distribute educational materials, or 

otherwise consider public policy issues. 

Similarly, an organization may appear 

before a governmental body at its request 

to offer testimony about a decision that 

may affect the organization’s existence.

A private foundation isn’t allowed 

to engage in any activities to 

influence legislation.

Line 6a. Form 5768. Most public 

charities are eligible to elect to make 

expenditures to influence legislation by 

filing Form 5768, Election/Revocation of 

Election by an Eligible Section 501(c)(3) 

Organization To Make Expenditures To 

Influence Legislation. By filing Form 5768, 

your legislative activities will be measured 

solely by an expenditure limit under 

section 501(h) rather than by whether the 

legislative activity is considered 

substantial. Form 5768 describes the 

types of organizations that are eligible to 

make an election. You must file Form 

5768 by mailing it to the address on the 

form. For a discussion of influencing 

legislation and the requirements of section 

501(h), see Pub 557.

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Churches and private foundations 

aren’t eligible to make this section 

501(h) election.

Line 7. Intellectual property includes 

the following;

• Patents (for inventions);

• Copyrights (for literary and artistic 

works such as novels, poems, plays, films, 

musical works, drawings, paintings, 

photographs, sculptures, architectural 

designs, performances, recordings, film, 

and radio or television programs);

• Trade names, trademarks, and service 

marks (for symbols, names, images, and 

designs); and

• Formulas, know-how, and trade 

secrets.

Line 8. These activities involve the 

education of the consumer on budgeting, 

personal finance, financial literacy, 

mortgage foreclosure assistance, or other 

consumer credit areas. These activities 

may also involve assisting the consumer 

in consolidating debt and negotiating 

between debtors and creditors to lower 

interest rates and waive late and over-limit 

fees. If you answer “Yes,” you may be 

subject to the requirements of section 

501(q). Search “501(q)” on IRS.gov for 

information on these requirements and 

whether they apply to you.

Line 9. A “relationship” between you 

and the recipient organization includes the 

following situations.

• You control the recipient organization, 

or it controls you through common 

officers, directors, or trustees, or through 

authority to approve budgets or 

expenditures.

• You and the recipient organization were 

created at approximately the same time 

and by the same persons.

• You and the recipient organization 

operated in a coordinated manner with 

respect to facilities, programs, employees, 

or other activities.

• Persons who exercise substantial 

influence over you also exercise 

substantial influence over the recipient 

organization.

Line 9b. Answer “Yes,” if you make 

grants, loans, or other distributions (such 

as goods) to a foreign organization.

Line 9g–i. The Office of Foreign Assets 

Control (OFAC) of the U.S. Department of 

the Treasury administers and enforces 

economic and trade sanctions based on 

U.S. foreign policy and national security 

goals against certain governments, 

entities, and individuals, as directed in 

Executive Orders. As part of the 

comprehensive and sustained campaign 

against terrorist financing, all U.S. 

persons, including U.S.–based charities, 

are prohibited from dealing with persons 

(individuals and entities) identified as 

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being associated with terrorism on 

OFAC’s Specially Designed Nationals and 

Blocked Persons List (OFAC SDN List). 

Information about OFAC sanction 

programs and the OFAC SDN List are 

available at www.treasury.gov/ofac.

Line 10. A “foreign country” is a 

country other than the U.S., its territories 

and possessions, and the District of 

Columbia.

Line 10a–c. See instructions for lines 9g–

i.

Line 11. You are a sponsoring 

organization of a donor-advised fund if 

you establish separate accounts that you 

own or control for a donor whereby the 

donor or donor-advisor may make 

recommendations about the investments 

of or distributions from the account. See 

Pub. 557 for more information on the 

definitions of sponsoring organizations 

and donor-advised funds.

You can't sponsor a 

donor-advised fund if you're a 

private foundation.

Line 12. A “school” is an educational 

organization whose primary function is the 

presentation of formal instruction and 

which normally maintains a regular faculty 

and curriculum and that normally has a 

regularly enrolled body of pupils or 

students in attendance at the place where 

its educational activities are regularly 

carried on. A school may include the 

following.

• Primary, secondary, preparatory, or 

high school.

• College or university.

• Trade or technical school.

• Nursery or pre-school.

• School that you operate as an activity, 

such as a school that is operated as an 

activity of a museum, historical society, or 

church.

If you're a nursery or pre-school 

that doesn't meet the description 

of a school, answer “No,” to 

line 12.

If you’re a nursery, pre-school, or 

child care organization that 

doesn’t meet the description of a 

school, you may still further an educational 

purpose if substantially all the care you 

provide is for the purpose of enabling 

individuals to be gainfully employed and 

your services are available to the general 

public (section 501(k)).

If you’re a school, or if you operate a 

school as an activity (even if it is a 

secondary activity), complete Schedule B. 

See Pub. 557 for additional information.

Line 13. “Hospital” or “medical care” 

includes the treatment of any physical or 

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Instructions for Form 1023 -9-
mental disability or condition, whether as 

an inpatient or outpatient. A hospital 

includes the following.

• Hospitals and rehabilitation institutions, 

outpatient clinics, or community mental 

health or drug treatment centers if the 

principal purpose or function is the 

providing of medical or hospital care or 

medical education or research.

• Medical research organizations if the 

principal purpose or function is the 

continuous active conduct of medical 

research in conjunction with a hospital.

If you provide “hospital or medical 

care,” or you’re a medical research 

organization, complete Schedule C.

See Pub. 557 for additional 

information.

Line 14. “Low-income housing” refers 

to rental or ownership housing provided to 

persons based on financial need. If you 

provide low-income housing, complete 

Schedule F.

Line 15. Answer “Yes,” if you pay money 

to an individual as a scholarship, 

fellowship, or education loan; for travel, 

study, or other similar purposes. Also, 

answer “Yes,” if you pay such amounts on 

behalf of an individual to a school or a 

tuition or educational savings program. 

Complete Schedule H—Section I.

Travel, study, or other similar purposes 

include payments made to enhance a 

literary, artistic, musical, scientific, 

teaching or other similar capacity, skill, or 

talent of the individual recipient. These 

payments include, for example, amounts 

paid to:

• Vocational high school students to be 

used to purchase basic tools;

• Teachers to induce them to teach in a 

public school system in an economically 

depressed area; and

• A scientific researcher to underwrite 

that individual’s research project.

Educational grants don’t include 

amounts you pay to an individual as 

compensation, such as payments made to 

a consultant for personal services or to 

produce a report for you.

Educational grants don’t include 

amounts paid to another organization that 

distributes your funds as a scholarship to 

an individual if you have no role in the 

selection process.

If you're a “private foundation” 

as described in Part VII, you must 

obtain advance approval of your 

grant-making procedures. You can use 

Schedule H—Section II, to request 

advance approval as part of this 

application process. You can complete 

Section II when you complete Part VII. 

Foundation Classification.

Line 16. “Fundraising”includes efforts 

to raise funds through appeals for financial 

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support. Fundraising may be conducted 

by your employees or volunteers, through 

an agent, or through an independent 

contractor. Check all the boxes that apply.

For purposes of this application, 

“bingo” is a game of chance played with 

cards that generally are printed with five 

rows of five squares each on which 

participants place markers to form a 

pre-selected pattern to win the game. 

“Other (non-bingo) gaming activities” 

include pull-tabs, raffles, keno, 

split-the-pot, and other games of chance.

Gaming doesn’t further an 

exempt purpose under section 

501(c)(3). Except to the extent 

that an exception may apply, your revenue 

from gaming activities will be subject to 

unrelated business income tax. See 

Pub. 3079 for further information about 

gaming.

Part V. Compensation and 

Other Financial 

Arrangements

Reminder. Answer all questions in this 

part as they pertain to your past, present, 

and future activities.

For purposes of Part V, compensation 

includes:

• Salary or wages;

• Deferred compensation;

• Retirement benefits, whether in the 

form of a qualified or non-qualified 

employee plan (pensions or annuities);

• Fringe benefits (personal vehicle, 

meals, lodging, personal and family 

educational benefits, low-interest loans, 

payment of personal travel, entertainment, 

or other expense, athletic or country club 

membership, and personal use of your 

property); and

• Bonuses.

Example. An organization could 

compensate a director as follows:

Wages

 Director 

Compensation . . .

$2,500

 Salary as Chief Executive

 Officer . . . . . . . . . . . . . . . 40,000

Deferred retirement . . . . . . 2,000

Health insurance policy . . . 5,000

Use of a vehicle . . . . . . . . 5,000

Total Compensation $54,500

Make sure the information you provide in 

Part V is consistent with the information 

you enter in Part VI. Financial Data.

Line 1. Compensation. Check “Yes,” if 

you do or you will compensate your 

officers, directors, or trustees. Also, check 

TIP

“Yes,” if you will or you do have highest 

compensated employees or highest 

compensated independent contractors.

For purposes of this form, “highest 

compensated” employees or independent 

contractors are persons to whom you pay 

over $100,000 of compensation, 

including compensation from related 

organizations.

For information on determining if an 

individual is an employee or an 

independent contractor, see Pub. 15-A, 

Employer’s Supplemental Tax Guide.

Line 1e. “Similarly situated 

organizations” means tax-exempt or 

taxable organizations of comparable size, 

purpose, and resources. Adjustments due 

to geographic area and other specified 

conditions are appropriate, but you should 

document the adjustments. You should 

document the sources(s) of comparable 

compensation data, both taxable and 

non-taxable, and retain copies in your 

permanent records.

Line 1g. “Reasonable compensation” 

is the amount that would ordinarily be paid 

for like services by like organizations 

under like circumstance as of the date the 

compensation arrangement is made. 

Establishing and documenting your 

decisions about compensation is 

important because excess compensation 

(including cash and other benefits that 

aren’t accounted for as reasonable 

compensation for services) may result in 

excise taxes on both the individual and 

you, and may jeopardize your tax 

exemption.

Line 2. A conflict of interest arises when a 

person in a position of authority over an 

organization, such as a director, officer, or 

manager, may benefit personally from a 

decision he or she could make. A sample 

Conflict of Interest Policy is included as 

Appendix A. This sample conflict of 

interest policy doesn’t prescribe any 

specific requirements. Therefore, 

organizations should use a conflict of 

interest policy that best fits their 

organizations.

Adoption of a conflict of interest policy 

isn’t required to obtain tax-exempt status. 

However, by adopting the sample policy or 

a similar policy, you will be choosing to put 

in place procedures that will help your 

officers, directors, and trustees recognize 

situations that could present potential or 

actual conflicts of interest so that you can 

take steps to reduce the risk that those in 

positions of authority over you may 

receive an inappropriate benefit.

The sample conflict of interest 

policy in Appendix A includes 

items marked “Hospital insert–for 

hospitals that complete Schedule C” that 

are intended to be adopted by hospitals.

TIP

-10- Instructions for Form 1023
Line 3. A fixed payment means a 

payment that is either a set dollar amount 

or fixed through a specific formula where 

the amount doesn’t depend on discretion. 

For example, a salary of $200,000 that is 

adjusted annually based on the increase 

in the Consumer Price Index is a fixed 

payment.

A “non-fixed payment” means a 

payment that depends on discretion. For 

example, a bonus of up to $100,000 that is 

based on an evaluation of performance by 

the governing board is a non-fixed 

payment because the governing body has 

discretion over whether the bonus is paid 

and on the amount of the bonus.

Line 4. Don’t include purchases or sales 

of goods and services in your normal 

course of operations that are available to 

the general public under similar terms and 

conditions.

Answer “Yes,” if any of your officers, 

directors, or trustees:

• Is an officer, director, or trustee of 

another organization (other than a section 

501(c)(3) organization) that you will 

purchase or sell goods, services, or 

assets from or to; or

• Possesses more than 35% ownership 

interest in any organization that you will 

purchase or sell goods, services, or 

assets from or to.

Arm’s length. An arm’s length 

standard exists where the parties have an 

adverse (or opposing) interest. For 

example, a seller wants to sell his goods 

at the highest possible price, while a buyer 

wants to buy at the lowest possible price. 

These are adverse interests.

In negotiating with a person, an 

adverse interest is assumed if that person 

is otherwise unrelated to you in the sense 

of not being in a position to exercise 

substantial influence over you or your 

affairs. If the person is in a position to 

exercise substantial influence over your 

affairs, then an arm’s length standard 

requires additional precautions to 

eliminate the effect of the relationship.

Using a conflict of interest policy, 

information about comparable 

transactions between unrelated parties, 

and reliable methods for evaluating the 

transaction, are examples of precautions 

that would help make the negotiation 

process equivalent to one between 

unrelated persons.

Fair market value. This is the price at 

which property or the right to use property 

would change hands between a willing 

buyer and a willing seller, neither being 

under any compulsion to buy, sell, or 

transfer property or the right to use 

property, and both having reasonable 

knowledge of relevant facts.

Line 5. Answer “Yes,” if any of your 

officers, directors, or trustees:

• Is an officer, director, or trustee in 

another organization (other than a section 

501(c)(3) organization) that has a lease, 

contract, loan, or other agreement with 

you; or

• Possesses more than a 35% ownership 

interest in any organization that has a 

lease, contract, loan, or other agreement 

with you. For example, answer “Yes,” if 

one of your directors is an officer for a 

section 501(c)(4) organization with whom 

you have a lease for office space, or if one 

of your directors owns more than 35% of 

the voting stock of a corporation to which 

you made a loan.

Line 6. “Develop” means the planning, 

financing, construction, or provision of 

similar services involved in the acquisition 

of real property, such as land or a building. 

For example, you should provide 

information regarding the services of a 

consultant who arranges your acquisition 

of a facility through the issuance of 

tax-exempt bonds.

Line 7. “Manage” means to direct or 

administer. For example, you would 

provide information about an organization 

hired to administer a museum gift shop.

Line 8. A “joint venture” is a legal 

agreement in which the persons jointly 

undertake a transaction for mutual profit. 

Generally, each person contributes assets 

and shares risks. Like a partnership, joint 

ventures can involve any type of business 

transaction and the persons involved can 

be individuals, groups of individuals, 

companies, or corporations.

Part VI. Financial Data

Line 1. Select the option that best 

describes you to determine the years of 

revenues and expenses you need to 

provide.

Completed less than 1 year. If 

you’ve existed for less than 1 year, 

provide projections of your likely income 

and expenses for your current year and 

projections of your likely income and 

expenses for the next 2 years based on a 

reasonable and good faith estimate of 

your future finances for a total of 3 years of 

financial information. Place financial 

information for the year you’re filing this 

application in the column marked Current 

tax year.

Completed more than 1 year, fewer 

than 5 years. If you’ve existed for more 

than 1 year but fewer than 5 years, 

provide your actual income and expenses 

for each completed year you’ve existed 

and projections of your likely income and 

expenses based on a reasonable and 

good faith estimate of your future finances 

for your current year and each year you 

haven’t existed, for a total of 4 years of 

financial information. Place financial 

information for the year you’re filing this 

application in the column marked Current 

tax year.

Completed 5 years or more. If 

you’ve existed for 5 years or more, provide 

your actual income and expenses for your 

5 most recently completed tax years. 

Place financial information for your most 

recently completed tax year in the column 

marked Current tax year.

We may request financial 

information for more than 5 years.

A. Statement of Revenue and 

Expenses

Preparing the statement. Prepare the 

statement using the method of accounting 

you use in keeping your books and 

records.

Prepare the statement using the 

accounting period entered on Part I, line 3. 

Enter “0” if a particular revenue or 

expense doesn’t apply to you.

Your financial information should reflect 

your activities described in this 

application.

Line 1. Enter the total gifts, grants, and 

contributions you receive (other than 

membership dues reported on line 2 and 

described below). Include items of value 

that you receive as gifts, grants, or 

contributions. For example, if one of your 

activities is a food drive, include the value 

of the donated food on this line. Also 

include on this line payments a 

governmental unit makes to enable you to 

both accomplish your exempt purpose(s) 

and to provide a service or facility directly 

to the general public.

See the instructions for line 9 if you’re 

uncertain whether revenue should be 

included as a grant on line 1 or as gross 

receipts on line 9. Include unusual 

grants on line 12 and not on line 1.

Examples. 

1. A city pays the symphony orchestra 

to provide free music programs in the 

public schools. The programs are open to 

the public. This income received from a 

governmental unit accomplishes the 

orchestra's exempt purpose and directly 

provides a service to the general public. 

This income is a grant to the symphony 

orchestra that should be listed on line 1.

2. The symphony orchestra sells 

tickets to the public for its fall season. 

Such income is gross receipts received 

from the general public in performance of 

the symphony orchestra’s exempt function 

and should be listed on line 9.

3. The public school system pays the 

orchestra to create several musical pieces 

CAUTION

!

Instructions for Form 1023 -11-
suitable for the school system’s 

elementary music curriculum. This 

payment by a governmental unit for the 

music compositions is primarily for the 

school system’s own use, not for the direct 

benefit of the public. Therefore, this 

income is gross receipts received from a 

governmental unit in performance of the 

orchestra’s exempt function that should be 

listed on line 9.

Line 2. Enter the amount you receive 

from members to provide support to the 

organization. Don’t include payments from 

members or on behalf of members to 

purchase admissions, merchandise, 

services, or use of facilities.

Line 3. Enter your gross income from 

dividends, interest, payments received on 

securities, loans, rents, and royalties you 

hold for investment purposes.

See Pub. 598 for additional information 

regarding royalties treated as unrelated 

business income.

Line 4. Enter your net income from 

unrelated business activities. “Unrelated 

business income” generally is income 

from any trade or business activity that is 

regularly carried on, and not related to 

your exempt purpose. Certain exceptions 

and exclusions may apply.

Report on line 9 income from activities 

that aren’t related to the accomplishment 

of your exempt purposes, but aren’t 

considered unrelated business activities. 

For example, report income from the sale 

of merchandise by volunteers that isn’t 

treated as an unrelated trade or business 

on line 9.

See Pub. 598 for additional information 

regarding unrelated business income.

Line 5. Enter amounts any local tax 

authority collects from the public on your 

behalf.

Line 6. Enter the value of services or 

facilities a governmental unit furnishes to 

you. Use the fair market value of the 

services or facilities. Don’t include the 

value of services or facilities generally 

provided by the governmental unit to the 

public without charge.

Line 7. Enter your total income from all 

sources not reported on lines 1 through 6, 

or lines 9, 11, and 12. Provide an itemized 

list in line 25, showing each type and 

amount of income included, and a brief 

description of each type of income.

Line 8. Lines 1 through 7 will be added 

for you.

Line 9. Enter income from activities that 

you conduct to further your exempt 

purposes (excluding amounts listed on 

other lines). Also, include as gross 

receipts the income from activities 

conducted:

• Intermittently (not regularly carried on), 

such as an occasional auction;

• With substantially all (at least 85%) 

volunteer labor, such as a car wash;

• For the convenience of members, 

students, patients, officers, or employees, 

such as a parking lot for a school’s 

students and employees; or

• With substantially all contributed 

merchandise, such as a thrift store.

See Pub. 598 for additional information 

regarding income that isn’t from an 

unrelated trade or business.

“Gross receipts” also includes 

payment by a governmental unit that may 

be called a “grant” but is actually payment 

for a service or facility for the use of the 

government payer, rather than for the 

direct benefit of the public.

Example. The state government gives 

a conservation group a grant to study the 

effects of a new sewage treatment plant 

on an ecologically significant woodland 

area. Although the payment is called a 

grant, it is actually gross receipts that 

should be included on line 9. The payment 

is by a governmental unit (state) for a 

study for its own use, not for the direct 

benefit of the general public. A for-profit 

consulting company could’ve done the 

study rather than by the tax-exempt 

conservation group.

Provide an itemized list of your gross 

receipts in line 25, describing the sources 

and amounts of income. For payments by 

a governmental unit, list the payer, the 

purpose of the payment, and the payment 

amount.

Line 10. Lines 8 and 9 will be added for 

you.

Line 11. Enter any net gain or loss on the 

sale of capital assets. Provide an itemized 

list by asset category (for example, real 

estate or securities) showing gross sales, 

cost or other basis/sales expenses, and 

gain or loss by asset category in line 25. 

You may use the format in Figure 2.

Line 12. Enter any “unusual grants,” 

which generally are any substantial 

contributions and bequests you received 

from disinterested persons that, by their 

size, adversely affect your classification as 

a public charity. “Unusual grants” are 

unusual, unexpected, and received from 

an unrelated party. Provide an itemized list 

of any unusual grants, including the 

amount in line 25, and explain how it was 

unusual, unexpected, and from an 

unrelated party.

For additional information about 

unusual grants and a description of public 

charity classifications, see Pub. 557.

Line 13. Lines 10 through 12 will be 

added for you.

Lines 14. Enter the total expenses you 

incur for soliciting gifts, grants, and 

contributions included on line 1. Include 

fees paid to professional fundraisers for 

soliciting gifts, grants, and contributions.

Line 15. Enter the total amount you pay 

out to both individuals and organizations. 

Provide an itemized list in line 25, 

identifying recipients (using letter 

designations such as A, B, C, etc.), a brief 

description of the purposes or conditions 

of payments, and the amounts paid.

Colleges, universities, and other 

educational institutions and agencies 

subject to the Family Educational Rights 

and Privacy Act (20 U.S.C. 1232g) don’t 

need to list the names of individuals to 

whom they provided scholarships or other 

financial assistance where such 

disclosure would violate the privacy 

provisions of the law. Instead, group each 

type of financial aid provided, indicate the 

number of individuals who received the 

aid, and specify the aggregate dollar 

amount.

Maintain (but don’t submit) a list 

showing the names of recipients 

associated with each letter designation.

Line 16. Enter total payments you make 

to or for the benefit of your members (not 

including any amounts listed on line 15). 

Provide an itemized list in line 25, 

identifying recipients (using letter 

Net Gain or Loss On Sales of Capital Assets

Categories

(A) Real Estate (B) Securities (C) Other

1. Gross sales price of 

assets (other than 

inventory) by category.

2. Less: Cost or other 

basis and sales 

expenses.

3. Gain or (loss). Subtract 

line 2 from line 1.

4. Net gain or (loss) — Add line 3 of columns (A), (B), and (C). Enter here and 

on Form 1023, Part VI - A. Statement of Revenues and Expenses, line 11.

Figure 2.

-12- Instructions for Form 1023
designations), a brief description of the 

purposes or condition of payments, and 

the amounts paid.

Maintain (but don’t submit) a list 

showing the names of recipients 

associated with each letter designation.

Line 17. Enter the total amount of 

compensation you pay to your officers, 

directors, and trustees.

Line 18. Enter the total amount of 

salaries and wages you pay to employees 

(not reported on line 17).

Line 19. Enter your total interest 

expenses for the year. Don’t include 

mortgage interest treated as an 

occupancy expense on line 20.

Line 20. Enter the amount you pay for the 

use of office space or other facilities, heat, 

light, power and other utilities, outside 

janitorial services, mortgage interest, real 

estate taxes, and similar expenses.

Line 21. Enter the total depreciation, 

depletion, and similar expenses you incur.

Line 22. Enter the total professional fees 

you pay. Professional fees are amounts 

charged by individuals and entities that 

aren’t your employees. They include fees 

for professional fundraisers (other than 

fees listed on line 14, earlier), accounting 

services, legal counsel, consulting 

services, contract management, or any 

independent contractors.

Line 23. Enter any expenses you didn’t 

include in the lines above, such as for 

program services. Provide an itemized list 

in line 25, showing the type and amount of 

each significant expense.

Line 24. Lines 14 through 23 will be 

added for you.

B. Balance Sheet

Complete the balance sheet for your most 

recently completed tax year. If you haven’t 

completed a full tax year, use the most 

current information available. Be sure to 

enter the year-end date for the information 

provided and not the date you prepare this 

application. Enter “0” if a particular asset 

or liability doesn’t apply to you.

Line 1. Enter your total cash in checking 

and savings accounts, temporary cash 

investments (money market funds, CDs, 

treasury bills, or other obligations that 

mature in less than 1 year), and petty cash 

funds.

Line 2. Enter your total accounts 

receivable that arose from the sale of 

goods and/or performance of services, 

less any reserve for bad debt.

Line 3. Enter the amount of materials, 

goods, and supplies you purchased or 

manufactured and held to be sold or used 

in some future period.

Line 4. Enter the total amount of bonds or 

notes you issued that will be repaid to you. 

Provide an itemized list in line 19, that 

shows the name of each borrower (using a 

letter designation), the borrower’s 

relationship to you, a brief description of 

the obligation, the rate of return, the due 

date, and the amount due.

Maintain (but don’t submit) a list 

showing the names of borrowers 

associated with each letter designation.

Line 5. Enter the total fair market value 

of corporate stocks you hold. Provide an 

itemized list of your corporate stock 

holdings in line 19.

For stock of closely held corporations, 

list the name or the corporation, a brief 

summary of the corporation’s capital 

structure, the number of shares held, and 

their value as carried on your books. If 

valuation doesn’t reflect current fair market 

value, also include fair market value.

For stock traded on an organized 

exchange or in substantial quantities over 

the counter, list the name of the 

corporation, a description of the stock, 

and the principal exchange on which it is 

traded, the number of shares held, their 

value as carried on your books, and their 

fair market value.

Line 6. Enter your total amount of loans 

(personal and mortgage loans) receivable. 

Provide an itemized list in line 19 that 

identifies each borrower (using a letter 

designation), the borrower’s relationship 

to you, purpose of loan, repayment terms, 

interest rate, and original amount of loan. 

Report each loan separately, even if more 

than one loan was made to the same 

person.

Maintain (but don’t submit) a list 

showing the names of borrowers 

associated with each letter designation.

Line 7. Enter the total book value of your 

other investments. Include the total book 

value of government securities (federal, 

state, and municipal), and buildings and 

equipment held for investment purposes. 

Provide an itemized list in line 19 

identifying and reporting the book value of 

each building/item of equipment held for 

investment purposes.

Line 8. Enter the total book value of 

buildings and equipment not held for 

investment purposes. This includes 

facilities you own and equipment you use 

in conducting your exempt activities. 

Provide an itemized list in line 19 of these 

assets held at the end of the current tax 

year/period, including the cost or other 

basis.

Line 9. Enter the total book value of land 

not held for investment purposes.

Line 10. Enter the total book value of any 

other category of your assets not reported 

on lines 1 through 9, for example, patents, 

copyrights, or other intangible assets. 

Provide an itemized list of each asset in 

line 19.

Line 11. Lines 1 through 10 will be added 

for you.

Line 12. Enter the total amount of your 

accounts payable to suppliers and others, 

such as salaries payable, accrued payroll 

taxes, and interest payable.

Line 13. Enter the total unpaid portion of 

grants and contributions you committed to 

pay to other organizations or individuals.

Line 14. Enter the total of your mortgages 

and other notes payable outstanding at 

the end of the current tax year/period. 

Provide an itemized list in line 19 showing 

each note separately, including the 

lender’s name, purpose of loan, 

repayment terms, interest rate, and 

original amount.

Line 15. Enter the total amount of any 

other liabilities not reported on lines 12 

through 14. Provide an itemized list in 

line 19 of these liabilities, including the 

amounts you owe.

Line 16. Lines 12 through 15 will be 

added for you.

Line 17. Under fund accounting, an 

organization segregates its assets, 

liabilities, and net assets into separate 

funds according to restrictions on the use 

of certain assets. Each fund is like a 

separate entity in that it has a 

self-balancing set of accounts showing 

assets, liabilities, equity (fund balance), 

income, and expenses. If you don’t use 

fund accounting, report only the “net 

assets” account balances, which include 

capital stock, paid-in capital, retained 

earnings or accumulated income, and 

endowment funds.

Line 18. Lines 16 and 17 will be added 

for you.

Part VII. Foundation 

Classification

Organizations that are exempt under 

section 501(c)(3) are private 

foundations unless they are:

• Churches, schools, hospitals, 

governmental units, entities that undertake 

testing for public safety, organizations that 

have broad financial support from the 

general public; or

• Organizations that support one or more 

organization(s) that are themselves 

classified as public charities.

Section 501(c)(3) organizations 

excepted from private foundation 

classification are public charities. Unless 

you meet one of the exceptions above, 

you’re a private foundation.

Instructions for Form 1023 -13-
You can only select one 

foundation classification.

Line 1. Select the foundation 

classification you’re requesting from the 

list below. The form will then take you to 

additional lines or parts of the application 

that you must complete based on your 

response.

509(a)(1) and 170(b)(1)(A)(vi). Select 

this classification if you normally receive a 

substantial part of your support from 

grants from governmental units or from 

contributions from the general public, or a 

combination of these sources. Typically, 

you would show a substantial part of your 

income on Part VI-A. Statement of 

Revenue and Expenses, lines 1 and 2.

Under this public charity 

classification, you must meet the one-third 

public support test or 10% facts and 

circumstances test. See Pub. 557 for more 

information.

Public support test. An organization 

must receive either:

1. At least one-third of its total support 

from governmental agencies, 

contributions from the general public, and 

contributions or grants from other public 

charities; or

2. At least 10% of its total support 

from governmental agencies, 

contributions from the general public, and 

contributions or grants from other public 

charities; and also satisfy a facts and 

circumstances test.

Facts and circumstances test. Facts 

and circumstances include:

1. The amount of support you 

received from the general public, 

governmental units, or public charities;

2. Whether you have a continuous 

and bona fide program for solicitation of 

funds from the general public, 

governmental units, or public charities, or 

carry on activities designed to attract 

support from organizations or other 

governmental units, and

3. All other facts and circumstances, 

including the public nature of your 

governing board, the extent to which your 

facilities or programs are publicly 

available, the extent to which nature your 

dues encourage membership, and 

whether your activities are likely to appeal 

to persons having a broad common 

interest or purpose. For additional 

information about the 10% facts and 

circumstances test, see Pub. 557 and 

Reg. 1.170A-9(f)(3).

509(a)(2). Select this classification if you 

normally receive more than one-third of 

your support from contributions, 

membership fees, and gross receipts 

from activities related to your exempt 

TIP

functions, or a combination of these 

sources, and not more than one-third of 

your support from gross investment 

income and net unrelated business 

income. Typically, you would show a 

substantial part of your income on Part 

VI-A. Statement of Revenues and 

Expenses, lines 1, 2, and 9.

Under this public charity 

classification, you must meet both the 

“one-third public support test ” and the 

“not-more-than-one-third investment 

income and net unrelated business 

income test,” lines 1 through 13. See Pub. 

557 for additional information about these 

tests.

509(a)(1) and 170(b)(1)(A)(i). Select 

this classification if your primary purpose 

is operating a church or convention or 

association of churches. The term 

“church” includes mosques, temples, 

synagogues, etc. If you select this box, 

complete Schedule A.

509(a)(1) and 170(b)(1)(A)(ii). Select 

this classification if your primary purpose 

is operating a school. If you select this 

box, complete Schedule B.

If you operate a school but it isn’t your 

primary purpose, don’t select this 

classification. However, you must still 

complete Schedule B. See Part IV, line 12.

509(a)(1) and 170(b)(1)(A)(iii). Select 

this classification if your primary purpose 

is providing medical or hospital care or 

medical eduction or research (performed 

in association with a hospital). If you select 

this box, complete Schedule C.

A hospital includes a rehabilitation 

institute, outpatient clinic, community 

mental health clinic, drug treatment 

center, or skilled nursing facility. A hospital 

doesn’t include convalescent homes, 

homes for children or the aged, or 

institutions whose principal purpose or 

function is to train handicapped individuals 

to pursue some vocation.

Cooperative hospital service 

organizations described in section 

501(e) should also check this box and 

complete Schedule C.

509(a)(1) and 170(b)(1)(A)(iv). Select 

this classification if you’re organized and 

operated exclusively to benefit a college 

or university owned or operated by a 

governmental unit. You must also normally 

receive a substantial part of your support 

from a governmental unit or from 

contributions from the general public.

509(a)(1) and 170(b)(1)(A)(ix). Select 

this classification if you’re an agricultural 

research organization described in section 

170(b)(1)(A)(ix) operated in conjunction 

with a land grant college or university or a 

non-land grant college of agriculture.

In Part IV, line 1, include information 

detailing your agricultural research 

program and how you will spend 

contributions to your program, including a 

description of how you’re engaged in the 

continuous active conduct of agricultural 

research (as defined in Section 1404 of 

the Agricultural Research, Extension, and 

Teaching Policy Act of 1977), information 

showing that you’re operated in 

conjunction with a land grant college or 

university or a non-land grant college of 

agriculture (as defined in Section 1404 of 

the Agricultural Research, Extension, and 

Teaching Policy Act of 1977), and 

information discussing the timing of when 

you will spend contributions for research.

509(a)(3). Select this classification if 

you’re organized and operated to support 

one or more public charities described in 

section 509(a)(1) or 509(a)(2) or an 

organization that is tax exempt under 

section 501(c)(4), (5), or (6) and meets the 

public support test of section 509(a)(2). 

See the instructions for Schedule D for 

more information about the requirements 

for this classification, including the 

required relationship you must have with 

your supported organization(s). Complete 

Schedule D.

509(a)(4). Select this classification if your 

primary purpose is to test products to 

determine their acceptability for use by the 

general public.

Contributions to organizations of this 

type aren’t deductible under section 

170(c). Also, organizations that primarily 

test for specific manufacturers don’t 

qualify for exemption under section 501(c)

(3).

Select my classification for me. Select 

this option if you believe you’re a public 

charity but would like the IRS to select the 

correct public charity classification (509(a)

(1) and 170(b)(1)(A)(vi) or 509(a)(2)) for 

you.

Private foundation. Select this 

classification if you don’t meet one of the 

exceptions listed above.

Line 1a. Section 508(e) provides that a 

private foundation isn’t tax exempt unless 

its organizing document contains 

specific provisions. These specific 

provisions require that you operate to 

avoid liability for excise taxes under 

sections 4941(d), 4942, 4943(c), 4944, 

and 4945(d). You can also meet these 

provisions by reliance on state law.

See Pub. 557 for samples of provisions 

that will meet section 508(e). Also, see 

Appendix B for a list of states that have 

enacted statutory provisions that satisfy 

the requirement of section 508(e), subject 

to notations. Appendix B is based on Rev. 

Rul. 75-38, 1975-1 C.B. 161.

-14- Instructions for Form 1023
Line 1c. Some private foundations are 

private operating foundations. Private 

operating foundations make qualifying 

distributions directly for the active conduct 

of their educational, charitable, and 

religious purposes. “Directly for the active 

conduct” means that you use the 

distributions yourself to carry out the 

programs for which you’re organized and 

operated. Grants made to assist other 

organizations or individuals are normally 

considered indirect.

Line 1d. If you have existed for 1 year or 

more, you must provide information that 

demonstrates you meet the requirements 

to be classified as a private operating 

foundation, including the income test and 

either the endowment test, the assets test, 

or the support test. If you have existed for 

less than 1 year, you must sufficiently 

describe how you’re likely to meet these 

requirements and tests. You may also 

submit an affidavit or opinion of counsel 

giving enough facts about your operations 

and support to enable us to determine that 

you’re likely to meet these requirements.

See Pub. 557 for additional information 

about private operating foundations.

Line 2. Confirmation of public support 

status. If you have been in existence for 

more than 5 years, and you requested 

classification as a public charity described 

in sections 509(a)(1) and 170(b)(1)(A)(vi), 

you must confirm that you meet the public 

support test.

To show that you meet the required 

public charity support test, complete lines 

2(i) and 2(ii). Calculate your public support 

based on the accounting method you used 

to complete Part VI-A, Statement of 

Revenues and Expenses.

Line 2(i). 509(a)(1) and 170(b)(1)(A)

(vi). Check “Yes,” if you received 

contributions from any person, company, 

or organization (other than a governmental 

unit described in section 170(c)(1) or a 

publicly supported organization under 

section 170(b)(1)(A)(vi)), whose gifts 

totaled more than 2% of the amount on the 

total of amounts entered on line 8 of Part 

VI-A, Statement of Revenue and 

Expenses, and identify those contributors 

by letter (A, B, C, etc.) and list the 

amount(s) contributed by each. Keep, but 

don’t submit, a list of the names of your 

donors with the associated letter 

designations.

Line 2(ii). Use Schedule A (Form 990 or 

990-EZ) Public Charity Status and Public 

Support, Part II, Support Schedule for 

Organizations Described in Sections 

170(b)(1)(A)(iv) and 170(b)(1)(A)(vi), and 

its instructions to determine if you met the 

public support test for your most recent 

5-year period.

Line 2a(i). 509(a)(2). Check “Yes,” if you 

received amounts listed on lines 1, 2, and 

9 of Part VI-A, Statement of Revenue and 

Expenses, from any disqualified 

persons and identify those disqualified 

persons by letter (A, B, C, etc.) and list the 

amounts contributed by each. Keep, but 

don’t submit, a list of the names of your 

donors with the associated letter 

designations.

Line 2a(ii). Check “Yes,” if you received 

amounts paid by an individual or 

organization greater than the larger of 1% 

of line 10, of Part VI-A, Statement of 

Revenues and Expenses, or $5,000 for 

any completed tax year, and identify those 

individuals or organizations by letter and 

list the amount(s) received from each. 

Keep, but don’t submit, a list of the names 

of your donors with the associated letter 

designations.

Don’t include disqualified persons 

in this list. Disqualified persons 

should be listed in line 2(a)(i). For 

purposes of this application, a 

“disqualified person” is any individual or 

organization that is any of the following.

1. A “substantial contributor” to you 

(defined below).

2. An officer, director, trustee, or any 

other individual who has similar powers or 

responsibilities.

3. An individual who owns more than 

20% of the total combined voting power of 

a corporation that is a substantial 

contributor.

4. An individual who owns more than 

20% of the profits interest of a partnership 

that is a substantial contributor.

5. An individual who owns more than 

20% of the beneficiary interest of a trust or 

estate that is a substantial contributor.

6. A member of the family of any 

individual described in 1, 2, 3, 4, or 5 

above.

7. A corporation in which any 

individuals described 1, 2, 3, 4, 5, or 6 

above hold more than 35% of the total 

combined voting power.

8. A trust or estate in which any 

individuals described in 1, 2, 3, 4, 5, or 6 

above hold more than 35% of the 

beneficial interests.

9. A partnership in which any 

individuals described in 1, 2, 3, 4, 5, or 6 

above hold more than 35% of the profits 

interest.

Substantial contributor. A substantial 

contributor is any individual or 

organization that gave more than $5,000 

to you from the date you were formed or 

other date that your exemption would be 

effective, to the end of the year in which 

the contributions were received. This total 

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amount contributed must also be more 

than 2% of all the contributions you 

received. A creator of a trust is treated as 

a substantial contributor regardless of the 

amount contributed. For more information 

regarding substantial contributors, go to 

IRS.gov/Charities-Non-Profits/PrivateFoundations/Substantial-ContributorPrivate-Foundation.

Family members. A “member of the 

family” includes the spouse, ancestors, 

children, grandchildren, 

great-grandchildren, and their spouses.

For additional information concerning 

members of the family, go to IRS.gov/

Charities-Non-Profits/CharitableOrganizations/Member-of-the-Family.

Further information about disqualified 

persons, can be obtained at IRS.gov/

Charities-Non-Profits/IRC-Setion-4946-

Definition-of-Disqualified-Person.

Line 2a(iii). Use Schedule A (Form 990 

or 990-EZ), Public Charity Status and 

Public Support, Part III, Support Schedule 

for Organizations Described in Section 

509(a)(2), and its instructions to determine 

if you meet the public support test for your 

most recent 5-year period.

Part VIII. Effective Date

Line 1. Use the formation date you listed 

in Part II, line 2, and the date you will 

submit this electronic form and required 

user fee payment to determine whether 

you’re submitting this application within 27 

months from the month in which you were 

formed. If you’re not submitting this 

application within 27 months from your 

formation, complete Schedule E.

Part IX. Annual Filing 

Requirement

Most organizations must file an annual 

return (Form 990, 990-EZ, or Form 

990-PF) or notice (Form 990-N, Electronic 

Notice (e-Postcard)). Exceptions to this 

rule include churches, certain church 

affiliated organizations, and certain 

affiliates of a governmental unit. You can 

find more detailed information about filing 

requirements and exceptions from the 

requirement to file in the Instructions for 

Form 990.

The following are some general rules.

• A private foundation must file Form 

990-PF annually, regardless of its gross 

receipts.

• Unless specifically required to file Form 

990 or Form 990-EZ (see the Instructions 

for Form 990), most public charities that 

normally have gross receipts of $50,000 or 

less may satisfy their filing obligation with 

Form 990-N, Electronic Notice 

(e-Postcard).

Instructions for Form 1023 -15-
If you fail to file a required 

information return or notice for 3 

consecutive years, your exempt 

status will be automatically revoked.

Line 1. Check “Yes,” if you’re claiming 

you are excepted from filing a Form 

990-series return or notice and indicate 

the reason you believe you’re excepted 

from filing. See Pub. 557 and the 

Instructions for Form 8940, Request for 

Miscellaneous Determination, for more 

information on the requirements for the 

various filing exceptions. Provide 

information regarding how you meet your 

requested exception in your narrative 

description of activities or as part of an 

uploaded supplemental response.

Part X. Signature

Signature requirements. An officer, 

director, trustee, or other official who is 

authorized to sign for the organization 

must sign Form 1023. The signature must 

be accompanied by the title or authority of 

the signer and the date.

The person signing Form 1023 

must be listed as an officer, 

director, or trustee within the first 

five entries of Part I, line 9.

Upload Checklist

Documents to upload. Check the boxes 

to indicate which documents are included 

in the file you upload with your application.

You must upload a copy of your 

organizing document and any 

amendments to it along with a copy of 

your bylaws, if adopted. The other listed 

documents are not required.

Put your name and EIN on each page 

of your supplemental response and 

identify the part and line number to which 

the information relates.

Pay.gov can accommodate only one 

uploaded file. Consolidate your 

attachments into a single PDF file, which 

cannot exceed 15MB.

If your PDF file exceeds the 15MB limit, 

remove any items over the limit and 

contact IRS Customer Accounts Services 

at 877-829-5500 for assistance on how to 

submit the removed items.

Schedule A. Churches

There is no single definition of the word 

“church” for tax purposes. When 

determining whether a section 501(c)(3) 

religious organization is described as a 

church (described in section 509(a)(1) and 

170(b)(1)(A)(i)), we will consider 

characteristics generally attributed to 

churches and the facts and circumstances 

of each organization applying for public 

charity classification as a “church.”

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The characteristics generally attributed to 

churches are:

• A distinct legal existence,

• A recognized creed and form of 

worship,

• A definite and distinct ecclesiastical 

government,

• A formal code of doctrine and 

discipline,

• A distinct religious history,

• A membership not associated with any 

other church or denomination,

• Ordained ministers ministering to the 

congregation,

• Ordained ministers selected after 

completing prescribed courses of study,

• A literature of its own,

• Established places of worship,

• Regular congregations,

• Regular religious services,

• Sunday schools for the religious 

instruction of the young, and

• Schools for the preparation of ministers.

Although you don’t need to meet each of 

the above criteria to be classified as a 

church, you’re generally required to have 

a congregation or other religious 

membership group. For purposes of 

foundation classification under section 

509(a)(1) and 170(b)(1)(A)(i), the term 

“church” includes, without limitation, 

mosques, temples, and synagogues, and 

certain other forms of religious 

organizations. For more information, see 

Pub. 1828.

The practices and rituals associated with 

your religious beliefs or creed must not be 

illegal or contrary to public policy.

Specific Line Items

Line 1. Describe your written creed, 

statement of faith, or summary of beliefs.

Line 2. Your literature includes any 

writings about your beliefs, rules, or 

history.

Line 3. A “code of doctrine and discipline” 

refers to a body of laws or rules that 

govern behavior.

Line 4. A “religious hierarchy or 

ecclesiastical government” refers to 

people or institutions that exercise 

significant influence or authority over your 

church.

Line 5. Answer “Yes,” if you’re part of a 

group of churches with similar beliefs and 

structures, such as a convention, 

association, or union of churches.

Line 6. A “form of worship” refers to 

religious practices that express your 

devotion to your creed, faith, or beliefs.

Line 7. Indicate the regular days and 

times of your religious services. Describe 

the order of events during your regular 

worship service and explain how the 

activities conducted as part of your 

services further your religious purposes.

Line 7a. Enter the average number of 

members and non-members who attend 

your regularly scheduled religious 

services.

Line 8. An “established place of worship” 

is a place where you hold regularly 

scheduled religious services. It may be a 

place that you own, rent, or that is 

provided free for your use.

Line 9. An “established congregation” or 

“other religious membership group” 

includes individuals who regularly attend 

and take part in the religious services of 

your organization at an established 

location. An established congregation 

generally doesn’t include members of only 

one family. If you answer “No,” because 

you don’t have an established 

congregation or other religious 

membership, you may be a religious 

organization that doesn’t qualify as a 

church. If you don’t qualify as a church, 

you will need to go back to Part VII, line 1, 

to reconsider your public charity 

classification.

You may request classification as 

a church at a later date after you 

establish a congregation or other 

religious membership group. For 

information about this option, see Form 

8940, Request for Miscellaneous 

Determination Under Section 507, 509(a), 

4940, 4942, 4945, and 6033 of the Internal 

Revenue Code, or contact our customer 

account service representatives at 

877-829-5500 (toll-free).

Line 9a. Enter the total number of your 

current members. If you have no 

members, enter zero (0).

Line 9b. Answer “Yes,” if you have a 

prescribed way to become a member. 

Answer “Yes,” even if you just keep 

records of who is currently a member. 

Describe any actions required for 

individuals to become members.

Line 9c. Describe any rights and benefits 

of members. You should include details of 

any levels of membership and the rights 

and/or benefits associated with each level.

Line 9d. If your members may be 

associated with another denomination or 

church, describe the circumstances in 

which your members would be members 

of your church and another church.

Line 9e. See Appendix C for a 

description of the word “family.”

Line 10. Answer “Yes,” if you conduct 

baptisms, weddings, funerals, or other 

religious rites.

Line 11. A school for the religious 

instruction of the young refers to any 

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regularly scheduled religious, educational 

activities for youth.

Line 12. A “prescribed course of study”

refers to formal or informal training. It 

doesn’t include self-ordination or paying a 

fee for an ordination certificate without 

completing a course of study. Describe 

the course of study completed by your 

religious leaders.

Line 15. Provide any additional 

information you would like us to consider 

that would help us classify you as a 

church.

Schedule B. Schools, 

Colleges, and Universities

An organization qualifies as a school (for 

purposes of classification under sections 

509(a)(1) and 170(b)(1)(A)(ii)) if all the 

following applies. It:

• Presents formal instruction as its 

primary function,

• Has a regularly scheduled curriculum,

• Has a regular faculty of qualified 

teachers,

• Has a regularly enrolled student body, 

and

• Has a place where educational 

activities are regularly carried on.

The term “school” includes primary, 

secondary, preparatory, high schools, 

colleges, and universities. An organization 

won’t be described as a school under 

sections 509(a)(1) and 170(b)(1)(A)(ii) if it 

engages in both educational and 

non-educational activities, unless the latter 

are merely incidental to the educational 

activities. Non-traditional schools such as 

an outdoor survival school or a yoga 

school may qualify. However, an 

organization may further an educational 

purpose without satisfying all the 

conditions listed above that describe a 

school. Such organizations may qualify as 

public charities based upon their sources 

of support as organizations described in 

sections 509(a)(1) and 170(B)(1)(A)(vi) or 

section 509(a)(2).

Specific Line Items

Line 1. Answer “Yes,” if you have a 

regularly scheduled curriculum, a regular 

faculty of qualified teachers, a regularly 

enrolled student body, and facilities where 

your educational activities are regularly 

carried on.

If you answer “Yes,”you should 

maintain in your records evidence 

that you meet these factors, such 

as:

• A list of required courses of study, 

dates and times courses are offered, and 

other information about how to complete 

required courses;

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• Certification by the appropriate state 

authority or successful completion of 

required training for qualified teachers;

• Records of regular attendance by 

students at your facility; and

• A lease agreement or deed for your 

facility.

If you answer “No,” you may not meet 

the requirements of a school and you may 

need to go back to Part VII, line 1, to 

reconsider your foundation classification if 

you requested classification as a school 

under sections 509(a)(1) and 170(b)(1)(A)

(ii).

Line 2. Answer “Yes,” if your primary 

function of the school is the presentation 

of formal instruction. If you answer “No,” 

you may not meet the requirements for 

classification as a school and may want to 

go back to Part VII, line 1, to reconsider 

your foundation classification if you 

requested classification as a school under 

sections 509(a)(1) and 170(b)(1)(A)(ii).

Line 3. Answer “Yes,” if you’re a public 

school and explain how you’re operated 

by the state or a subdivision of a state, 

including if you have a signed contract or 

agreement with a state or local 

government under which you operate and 

receive funding. If you answer “Yes,” don’t 

complete the remainder of Schedule B.

Line 4. Answer “Yes,” if you were formed 

or substantially expanded when public 

schools in your district or county were 

desegregated by court order.

If you're unsure whether to answer 

“Yes,”contact an appropriate 

school official.

Line 5. Answer “Yes,” if a state or federal 

administrative agency or judicial body ever 

determined your organization to be racially 

discriminatory. Identify the parties involved 

and the forum in which the case was 

presented. Explain the reason for the 

action, the decision reached, and provide 

legal citations (if any) for the decision. 

Also, explain in detail any changes made 

in response to the action against your 

organization or the decision reached.

Establishment of Racially 

Nondiscriminatory Policy

Every private school is subject to the 

provisions of Revenue Procedure 75-50, 

1975-2 C.B. 587, modified by Rev. Proc. 

2019-22, 2019-22 I.R.B. 1260. See Pub. 

557, which sets forth the requirements of 

Rev. Proc. 75-50 under the section for 

Private Schools.

Publication of racially nondiscriminatory policy. A section 501(c)(3) 

organization that is a private school must 

publish a notice of its racially 

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nondiscriminatory policy as to students as 

follows.

The M school admits students 

of any race, color, national 

origin, and ethnic origin to all the 

rights, privileges, programs, and 

activities generally accorded or 

made available to students at 

the school. It doesn't 

discriminate on the basis of 

race, color, national origin, and 

ethnic origin in administration of 

its educational policies, 

admission policies, scholarship 

and loan programs, and athletic 

and other school-administered 

programs.

Annual certification. A private school 

must certify annually that it meets the 

requirements of Rev. Proc. 75-50, as 

modified by Rev. Proc. 2019-22, by filing 

Schedule A (Form 990, or Form 990-EZ) 

Organization Exempt Under Section 

501(c)(3).

Schools that don’t file Form 990 or 

990-EZ must make the certification by 

filing Form 5578, Annual Certification of 

Racial Nondiscrimination for a Private 

School Exempt From Federal Income Tax.

Line 7. Answer “Yes,” if your organizing 

document or bylaws contain a 

nondiscriminatory statement as to 

students similar to the one shown above 

or if you adopted such a policy by 

resolution of your governing body. State 

where your policy is located in your 

organizing document, bylaws, or if it is in 

an adopted resolution. If you answered 

“No,” you must adopt a nondiscriminatory 

policy before submitting this application.

Line 8. Answer “Yes,” if your brochures, 

application forms, advertisements, and 

catalogues dealing with student 

admissions, programs, and scholarships 

contain a statement similar to the 

following:

The M school admits students of any 

race, color, and national or ethnic 

origin.

Line 8a. If you answered “No” to Line 8, 

check the box on line 8a if you agree that 

all future printed materials, including 

website content, will contain a statement 

of nondiscriminatory policy as to students 

similar to the one provided above.

Line 9. You must make your 

nondiscriminatory policy known to all 

segments of the general community 

served by the school. One way to meet 

this requirement is to publish your 

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nondiscriminatory policy annually in a 

newspaper or over broadcast media. Rev. 

Proc. 2019-22 now allows this publication 

requirement to be satisfied by 

continuously displaying your 

nondiscrimination statement on your 

Internet site, as described below.

Check “Yes,” if you make your racially 

nondiscriminatory policy known to all 

segments of the general community you 

serve by:

• Publishing a notice of your policy in a 

newspaper of general circulation that 

serves all racial segments of the 

community;

• publicizing your policy over broadcast 

media in a way that is reasonably 

expected to be effective; or

• display a notice of your policy at all 

times on your primary, publicly accessible 

Internet homepage in a manner 

reasonably expected to be noticed by 

visitors to the homepage.

See Rev. Proc. 75-50, as modified by 

Rev. Proc. 2019-22, for guidance on the 

format and content of the required notice 

and whether any exceptions may apply to 

you.

A notice published in the legal 

notices section or classified 

advertisements of your local 

newspaper generally is not acceptable.

Line 9a. If you answered “No,” to line 9, 

check the box on line 9a if you agree that 

you will publicize your nondiscriminatory 

policy in a way that meets the 

requirements of Revenue Procedure 75–

50, as modified by Revenue Procedure 

2019-22.

Line 11. Enter the racial composition of 

your student body, faculty, and 

administrative staff in the spaces 

provided. Enter actual numbers, rather 

than percentages, for the current year and 

projected numbers for the next academic 

year. If the number is zero, then enter “0.”

If you’re not operational, submit an 

estimate based on the best information 

available (such as the racial composition 

of the community you serve).

Don’t identify students, faculty, 

and staff by name.

Line 12. Enter the racial composition of 

students to whom you award loans and 

scholarships in the spaces provided. Enter 

actual numbers, rather than percentages, 

for the current year and projected 

numbers for the next academic year. If the 

number is zero, then enter “0.” If you won’t 

provide any loans or scholarships, check 

the box provided.

Don’t identify students by name.

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If you complete line 12 indicating 

you do or will provide loans or 

scholarships, be sure your 

response to Part IV, line 15 is consistent 

with your response here.

Line 13. Identify each of your 

incorporators, founders, board members, 

donors of land, and donors of buildings by 

name (whether individuals or 

organizations).

Line 14. Answer “Yes,” if any individuals 

or organizations on your list have an 

objective to keep public or private school 

education segregated by race and explain 

how these individuals or organizations 

promote segregation in public or private 

schools.

Line 15. Answer “Yes,” if on a continuing 

basis, you will maintain for a minimum 

period of 3 years the following records.

• Your racial composition (similar to the 

information requested on Schedule B, 

line 11).

• Evidence that your scholarships and 

loans are awarded on a racially 

nondiscriminatory basis (similar to the 

information requested on Schedule B, 

line 12).

• Copies of all materials used by you or 

on your behalf to solicit contributions.

• Copies of brochures, application forms, 

advertisements, and catalogues dealing 

with student admissions, programs, and 

financial aid.

Answer “No,” if you don’t maintain 

records and explain how you meet the 

recordkeeping requirements under Rev. 

Proc. 75-50.

Failure to maintain these records 

or produce them upon the proper 

request will create a presumption 

that you haven’t complied with the 

requirements of Rev. Proc. 75-50.

Schedule C. Hospitals and 

Medical Research 

Organizations

An organization qualifies as a hospital for 

purposes of classification under sections 

509(a)(1) and 170(b)(1)(iii) if it is a:

• Hospital,

• Medical research organization 

operated in conjunction with a hospital, or

• Cooperative hospital service 

organization.

Hospital. An organization is a “hospital”

if its principal purpose or function is 

providing medical or hospital care or 

medical education or research. Medical 

care includes treatment of any physical or 

mental disability or condition, on an 

inpatient or outpatient basis. Thus, if an 

organization is a rehabilitation institution, 

outpatient clinic, or community mental 

health or drug treatment center, it is a 

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hospital if its principal function is providing 

treatment services, as described above.

A hospital doesn't include convalescent 

homes, homes for children or the aged, or 

institutions whose principal purposes or 

function is to train handicapped individuals 

to pursue a vocation.

Medical research organization. An 

organization is a “medical research 

organization” if its principal purpose or 

function is the direct, continuous, and 

active conduct of medical research in 

conjunction with a hospital. The hospital 

with which the organization is affiliated 

must be described in section 501(c)(3), a 

federal hospital, or an instrumentality of a 

governmental unit, such as a municipal 

hospital.

“Medical research” means investigations, 

experiments, and studies to discover, 

develop, or verify knowledge relating to 

the causes, diagnosis, treatment, 

prevention, or control of human physical or 

mental diseases and impairments. For 

more information, see Regulations section 

1.170A-9(c)(2).

Cooperative hospital service 

organization. A cooperative hospital 

service organization performs one or more 

of the specific services listed below for 

one or more exempt hospitals on a 

cooperative basis. The services listed 

below are exclusive. A cooperative service 

organization that provides services other 

than those listed below, or that provides 

services to an organization other than an 

exempt hospital, doesn’t qualify for 

exemption under section 501(c)(3). The 

list of services includes:

1. Data processing;

2. Purchasing (including the 

purchasing of insurance on a group basis);

3. Warehousing;

4. Billing and collection (including the 

purchasing of patron accounts receivable 

on a recourse basis);

5. Food;

6. Clinical;

7. Industrial engineering;

8. Laboratory;

9. Printing;

10. Communications;

11. Record center; and

12. Personnel services (including 

selection testing, training, and education 

of personnel).

Specific Line Items

Line 1. Answer “Yes,” if your organization 

is a medical research organization, as 

described above.

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Line 1a. As a medical research 

organization, you must be associated with 

a hospital described in section 501(c)(3), 

a federal hospital, or an instrumentality of 

a government. Provide the name of the 

hospital(s) you’re associated with and 

describe the relationship(s).

Line 1b. List your assets and their fair 

market value and the portion of your 

assets directly devoted to medical 

research. Don’t complete the remainder of 

Schedule C.

Line 2. Answer “Yes,” if you’re a 

cooperative hospital service organization 

and describe the services you provide to 

your member hospitals and the exempt 

status of your membership. Don’t 

complete the remainder of Schedule C.

Line 3. Answer “Yes,” if all the doctors in 

your community are eligible for staff 

privileges at your facility. You must answer 

“Yes,” even if staff privileges at your 

facilities are limited by capacity, provided 

that all qualified medical professionals in 

your community may seek and would be 

considered for eligibility.

Answer “No,” if all doctors in your 

community aren’t eligible for staff 

privileges at your facility.

If you answer “No,” describe in detail 

how you limit eligibility for staff privileges 

at your facility. Include details of your 

eligibility criteria and selection procedures 

for your courtesy staff of doctors.

Line 4. Answer “Yes,” if you admit all 

patients in your community who can pay 

for themselves or through some form of 

third-party reimbursement (for example, 

private health insurance, Medicare, or 

Medicaid).

Answer “No,” if you limit admission for 

these individuals in any way and describe 

your admission policy in detail, including 

how and why you restrict patient 

admission.

Line 5. Answer “Yes,” if you offer 

emergency medical or hospital care at 

your facility on a 24-hour basis, seven 

days a week.

Line 5a. Answer “Yes,” if the reason you 

don’t maintain a full-time emergency room 

is either because you’re a specialty 

hospital where emergency care would be 

inappropriate for the services you provide 

or another emergency medical care facility 

that provides such services is located so 

near to you as to make such services as 

you might provide duplicative.

Line 6. Answer “Yes,” if you provide free 

or low-cost medical or hospital care 

services. If you answer “Yes,” describe 

your policy and to whom you provide 

these services. Include details on how 

these services promote benefits to the 

community. For example, you may want 

to indicate how you determine who is 

eligible for the services, how you inform 

the general public about your policy, any 

requirements you require of patients to 

receive reduced cost or free care, and any 

agreements you might have with 

municipalities or government agencies to 

subsidize the cost of admitting or treating 

patients through this policy.

Line 7. Answer “Yes,” if you have a 

formal program of medical training and 

research. If you answer “Yes,” describe 

your program, including the programs you 

offer, the scope of such programs, and 

affiliation with other hospitals or medical 

care providers with which you carry on the 

medical training or research programs.

Line 8. Answer “Yes,” if you have a 

formal program of community educational 

programs and describe your programs, 

including the types of programs offered, 

the scope of the programs, and affiliation 

with other hospitals or medical care 

providers with whom you offer community 

educational programs.

Line 9. Answer “Yes,” if you have a board 

of directors that is representative of the 

community you serve or if an 

organization described under section 

501(c)(3) with a community board 

exercises rights or powers over you.

Answer “Yes,”if you’re subject to a 

state corporate practice of medicine law 

that requires your governing board to be 

composed solely of physicians licensed to 

practice medicine in the state.

Line 9a. List each board member by 

name and describe that person’s 

relationship to you. Also, for each board 

member, describe if and how that 

individual represents the community. 

Generally, hospital employees and staff 

physicians aren’t individuals considered to 

be community representatives. If you 

operate under a parent organization 

whose board of directors isn’t comprised 

of a majority of individuals who are 

representative of the community you 

serve, provide the requested information 

for your parent organization's board of 

directors as well.

Line 10. Section 501(r). Answer “Yes,” if 

you operate a facility that is required by a 

state to be licensed, registered, or 

similarly recognized as a hospital. 

Organizations that respond “Yes,” to this 

question are required to meet additional 

requirements described in section 501(r) 

to be considered a hospital exempt from 

taxation by section 501(c).

Line 10a. A community health needs 

assessment (CHNA) is an assessment of 

the significant health needs of the 

community. To meet the requirements of 

section 501(r)(3), a CHNA must take into 

account input from persons who represent 

the broad interests of the community 

served by the hospital facility, including 

those with special knowledge of or 

expertise in public health, and must be 

made widely available to the public. Each 

hospital facility must conduct a CHNA at 

least once every 3 years and adopt an 

implementation strategy to meet the 

community health need identified through 

such CHNA.

Answer “Yes,” if the hospital facility 

conducted a complying CHNA in the 

current tax year or in either of the 2 

immediately preceding tax years or if the 

hospital facility intends to conduct a 

CHNA before the end of its first 3-year 

period.

Line 10b. A financial assistance policy 

(FAP), sometimes referred to as a charity 

care policy, is a policy describing how an 

organization will provide financial 

assistance at its hospital(s) and other 

facilities, if any. Financial assistance 

includes free or discounted health 

services provided to persons who meet 

the organization’s criteria for financial 

assistance and are unable to pay for all or 

a portion of the services. Financial 

assistance doesn’t include:

• Bad debt or uncollectible charges that 

the organization recorded as revenue but 

wrote off due to a patient’s failure to pay or 

the cost of providing such care to such 

patients;

• The difference between the cost of care 

provided under Medicaid or other 

means-tested government programs or 

under Medicare and the revenue derived 

therefrom;

• Self-pay or prompt pay discounts; or

• Contractual adjustments with any 

third-party payors.

Answer “Yes,” if the hospital facility has 

adopted a written financial assistance 

policy and a written policy relating to 

emergency medical care as required by 

section 501(r)(4).

Line 10c. Under section 501(r)(5), the 

maximum amounts that can be charged to 

FAP-eligible individuals for emergency or 

other medically necessary care are the 

amounts generally billed to individuals 

who have insurance covering such care.

Answer “Yes,” if the hospital facility:

1. Limits or will limit any charges to 

FAP-eligible individuals to whom the 

hospital facility provided emergency or 

other medically necessary services to not 

more than the amounts generally billed to 

individuals who had insurance covering 

such care; and

2. Prohibits, or upon beginning 

operations will prohibit, the use of gross 

charges as described in section 501(r)(5).

The hospital facility may check “Yes,” if 

it charged more than the amounts 

generally billed to individuals who had 

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insurance covering such care to an 

individual if:

• The charge in excess of the amounts 

generally billed (AGB) wasn’t made or 

requested as a pre-condition of providing 

medically necessary care to the 

FAP-eligible individual;

• As of the time of the charge, the 

FAP-eligible individual hadn’t submitted a 

complete FAP application and hadn’t 

otherwise been determined by the hospital 

facility to be FAP eligible for the care; and,

• If the individual subsequently submits a 

complete FAP application and is 

determined to be FAP-eligible for care, the 

hospital facility refunds any amount that 

exceeds the amount he or she is 

determnined to be personally responsible 

for paying as a FAP-eligible individual, 

unless such excess amount is less than 

$5.

Line 10d. Answer “Yes,” if the hospital 

facility has, or will have at the beginning of 

operation, either a separate written billing 

and collections policy, or include in a 

written FAP:

• A description of any actions that the 

hospital facility (or other authorized party) 

may take related to obtaining payment of a 

bill for medical care, including, but not 

limited to, any extraordinary collection 

actions (ECAs);

• The process and time frames the 

hospital facility (or other authorized party) 

uses in taking those actions (including, but 

not limited to, the reasonable efforts it will 

make to determine whether an individual 

is FAP-eligible before engaging in ECAs); 

and

• The office, department, committee, or 

other body with the final authority or 

responsibility for determining that the 

hospital facility has made reasonable 

efforts to determine whether an individual 

is FAP-eligible and may therefore engage 

in ECAs against the individual.

Schedule D. Section 

509(a)(3) Supporting 

Organizations

Supporting organizations are described in 

section 509(a)(3). The term “supported 

organization” refers to an organization that 

a supporting organization benefits. A 

supporting organization may support more 

than one supported organization.

An organization qualifies as a supporting 

organization (for purposes of classification 

under section 509(a)(3)) if:

• It is organized and at all times thereafter 

is operated exclusively for the benefit of, 

to perform the function of, or to carry out 

the purposes of one or more public 

charities described in section 509(a)(1) or 

509(a)(2);

• It meets one of three required 

relationship tests with the supported 

organization(s); and

• It isn’t controlled by “disqualified 

persons,” directly or indirectly. See 

Appendix C for a definition of a 

“disqualified person.”

A supporting organization can also 

support the charitable purposes of 

organizations that are exempt under 

sections 501(c)(4), (5), or (6).

Specific Line Items

Line 1. List the name, address, and EIN 

of each organization you support.

Line 2. Answer “Yes,” if each supported 

organization has a letter from the IRS 

recognizing it as a public charity under 

section 509(a)(1) or 509(a)(2).

Before you file your application, 

use Tax Exempt Organization 

Search on IRS.gov to confirm 

whether each of your supported 

organizations is currently recognized as 

exempt and is classified as a public 

charity.

Line 2a. Answer “Yes,” if any supported 

organization you listed on line 1 received a 

letter from the IRS stating that it’s exempt 

under sections 501(c)(4), (5), or (6) and 

meets the public support test under 

section 509(a)(2). See Pub. 557 for 

information on the public support test for 

section 509(a)(2).

If you answer “No,” describe how each 

organization you support is a public charity 

under section 509(a)(1) or 509(a)(2). For 

example, if you support a church or 

foreign organization that hasn’t received a 

determination letter recognizing it as a 

public charity, you should describe how 

this organization qualifies as a public 

charity under section 509(a)(1) or 509(a)

(2). See Pub. 557 for information on public 

charities under sections 509(a)(1) and 

509(a)(2).

Line 3. Relationship test. To qualify 

under section 509(a)(3), you must show 

that you meet one of three relationship 

tests with your supported organization(s). 

Select the option that best describes your 

relationship with your supported 

organization(s).

• Type I (“operated, supervised, or 

controlled by” relationship; comparable 

to a parent–subsidiary relationship): A 

majority of your governing board or 

officers are elected or appointed by the 

governing body, members of the 

governing body, officers acting in their 

official capacity, or the membership of 

your supported organization(s).

• Type II (“supervised or controlled in 

connection with” relationship; 

comparable to a brother–sister 

relationship): Your control or management 

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is vested in the same persons who control 

or manage your supported 

organization(s).

• Type III (“operated in connection 

with” relationship; responsive to the 

needs or demands of, and having 

significant involvement in the affairs of, the 

supported organization(s)): One or more 

of your officers, directors, or trustees are 

elected or appointed by the officers, 

directors, trustees, or membership of your 

supported organization(s); one or more of 

your officers, directors, trustees, or other 

important office holders are also members 

of the governing body of your supported 

organization(s); or your officers, directors, 

or trustees maintain a close and 

continuous working relationship with the 

officers, directors, or trustees of your 

supported organization(s).

If you don't meet one of these 

three relationship tests, you aren't 

described in section 509(a)(3) and 

should review the other foundation 

classification options in Part VII, line 1.

Line 4. Describe how your governing 

board and officers are selected, including 

where (if applicable) this information is in 

your governing document, bylaws, or 

other internal rules and regulations.

Type III organizations must also 

describe how your officers, directors, or 

trustees maintain a close and continuing 

relationship with the officers, directors, or 

trustees of your supported organization(s).

Line 5. Prohibited control by disqualified person. You can’t be described in 

section 509(a)(3) if you’re directly or 

indirectly controlled by disqualified 

persons. You are controlled if disqualified 

persons:

• Can exercise 50% or more of the total 

voting power of your governing body;

• Have authority to affect significant 

decisions, such as power over your 

investment decisions, or power over your 

charitable disbursement decisions; or

• Can exercise veto power over your 

actions.

Although control is generally 

demonstrated where disqualified persons 

have the authority over your governing 

body to require you to take an action or 

refrain from taking an action, indirect 

control by disqualified persons will also 

disqualify you as a supporting 

organization.

See Appendix C for a description of the 

terms “disqualified person,” “family,” 

“foundation manager,” and “business 

relationship.”

Public charities and foundation 

managers who otherwise are 

disqualified persons only because 

they are foundation managers aren't 

disqualified persons for this purpose.

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Line 7. Organizational test. If you 

answered “No,” you are a Type III 

supporting organization, you must amend 

your organizing document to specify 

your supported organization(s) by name; 

or you won’t meet the organizational test 

under section 509(a)(3) and need to 

reconsider your requested public charity 

classification in Part VII, line 1.

Line 7a. If you answered “No,” you won’t 

meet the organizational test under section 

509(a)(3) unless you amend your 

organizing document to specify your 

supported organization(s) by name, 

purpose, or class, and need to reconsider 

your requested public charity classification 

in Part VII, line 1.

Line 8. When responding to this question, 

don’t include donors that are section 

509(a)(1), (2), or (4) organizations.

This prohibition on contributions 

from controlling donors only 

applies to Type I and Type III 

supporting organizations.

Line 9. Type III responsiveness test. 

Answer “Yes,” if, because of your 

relationship described in line 3, the 

supported organization has a significant 

involvement in your investment policies, 

making and timing of grants, and directing 

the use of your income and assets, and 

explain how your supported organization 

is involved in these matters.

Line 10. Type III notification requirement. A Type III supporting organization 

must provide the notice described in this 

question. If you’re a Type III supporting 

organization, you’ll be required to answer 

this question annually on your annual 

information return (Schedule A of Form 

990 or 990-EZ).

Lines 11–13. Type III integral part test. 

An organization seeking classification as a 

Type III supporting organization must 

meet an integral part test, which is 

satisfied by maintaining significant 

involvement in the operations of one or 

more supported organizations and 

providing support on which the supported 

organization(s) are dependent. A Type III 

supporting organization may be 

functionally integrated (lines 11–12) or 

non-functionally integrated (lines 13 and 

13a–c) depending on the manner in which 

it meets the integral part test. Functionally 

integrated Type III supporting 

organizations are subject to fewer 

restrictions and requirements than 

non-functionally integrated Type IIII 

supporting organizations.

Line 11. Answer “Yes,” if you’re the 

parent of all your supported organizations 

because you:

1. Have the power to appoint or elect, 

directly or indirectly, a majority of the 

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officers, directors, or trustees of each 

supported organization; and

2. Exercise a substantial degree of 

direction over the policies, programs, and 

activities of each supported organization.

For example, N, an organization 

described in section 501(c)(3), is the 

parent organization of a healthcare system 

consisting of two hospitals (Q and R) and 

an outpatient clinic (S), each of which is 

described in section 509(a)(1), and a 

taxable subsidiary (T). N is the sole 

member of each of Q, R, and S. Under the 

charter and bylaws of each of Q, R, and S, 

N appoints all members of the board of 

directors of each corporation. N engages 

in the overall coordination and supervision 

of the healthcare system’s exempt 

subsidiary corporations Q, R, and S in 

approval of their budgets, strategic 

planning, marketing, resource allocation, 

securing tax-exempt bond financing, and 

community education. N also manages 

and invests assets that serve as 

endowments of Q, R, and S.

Line 12. Answer “Yes,” if you conduct 

activities that the supported organization 

would otherwise need to conduct in 

furtherance of its exempt purposes and 

describe the activities that you conduct.

Holding title to and managing assets 

that are used (or held for use) directly in 

carrying out the exempt purposes of your 

supported organization (exempt-use 

assets) are activities that directly further 

the exempt purposes of your supported 

organization. Conversely, with certain 

exceptions, fundraising, making grants 

(whether to the supported organization or 

to third parties), and investing and 

managing non-exempt-use assets aren’t 

activities that directly further the exempt 

purposes of the supported organization. 

See Regulations section 1.509(a)-4(i)(4)

(ii) for more information.

Line 13. To satisfy the integral part test 

as a non-functionally integrated supporting 

organization, you must distribute at least 

85% of your annual net income or 3.5% 

of the aggregate fair market value of all 

of your non-exempt-use assets (whichever 

is greater) to your supported 

organization(s). You can use Part V of 

Schedule A (Form 990 or 990-EZ) to help 

determine your answer to this question.

The distributable amount for the 

first tax year an organization is 

treated as a non-functionally 

integrated Type III supporting organization 

is zero.

For purposes of this line, “net income” has 

the same meaning as the term “adjusted 

net income.” In general, “adjusted net 

income” is the excess of gross income, 

including gross income from any unrelated 

trade or business, determined with certain 

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modifications, reduced by total 

deductions. Gross income doesn’t include 

gifts, grants, or contributions. See 

Appendix C.

For purposes of this line, “non-exempt-use 

assets” are all assets of the supporting 

organization other than:

1. Assets described in Regulations 

section 53.4942(a)(2)(c)(2)(i) through (iv), 

and

2. Exempt-use assets, which are 

assets that are used (or held for use) 

directly in carrying out the exempt 

purposes of your supported organization. 

See Regulations section 1.509(a)-4(i)(8) 

for more information.

Line 13a. List the total amount you 

distribute(d) annually to each supported 

organization. Also, indicate how each 

amount will vary from year to year.

Line 13b. List the total annual income for 

each supported organization. If you 

distribute your income to, or for the use of, 

a particular department or program of an 

organization, list the annual revenue of the 

supported department or program.

Line 13c. Answer “Yes,” if your funds are 

“earmarked” for a particular program or 

activity conducted by your supported 

organization.

Schedule E. Effective Date

The questions in this schedule will help us 

determine the effective date of exemption 

if you’re either seeking reinstatement after 

automatic revocation or you’re filing this 

application more than 27 months after the 

end of the month in which you were legally 

formed.

Specific Line Items

Line 1. Answer “Yes,” if your exempt 

status was automatically revoked under 

section 6033(j)(1) for failure to file required 

annual returns or notices for 3 consecutive 

years and you’re applying for 

reinstatement.

Rev. Proc. 2014-11, 2014-3 I.R.B. 411, 

at IRS.gov/irb/2014-03_IRB establishes 

several different procedures for reinstating 

an organization’s exempt status 

depending upon its size, the number of 

times it’s been automatically revoked, and 

the timeliness of filing for reinstatement. 

Review the revenue procedure to 

determine which section applies to you.

Line 1a. Select the section of Rev. Proc. 

2014-11 under which you’re applying for 

reinstatement.

Section 4. Select this section if:

• You were eligible to file either Form 

990-EZ or Form 990-N for each of the 3 

consecutive years that you failed to file;

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• This is the first time you’ve been 

automatically revoked pursuant to section 

6033(j)(1); and

• You’re submitting this application no 

later than 15 months after the later of the 

date of your Revocation Letter or the date 

on which the IRS posted your name on the 

Auto-Revocation List at 

apps.irs.gov/app/eos/.

By selecting this item, you’re also 

attesting that your failure to file wasn’t 

intentional and you’ve put in place 

procedures to file required returns or 

notices in the future.

If you were classified as a private 

foundation prior to your 

automatic revocation, you weren't 

eligible to file either Form 990-EZ or Form 

990-N and, therefore, aren't eligible to 

request reinstatement under Section 4.

If your exempt status was 

automatically revoked more than 

once, you’re not eligible for 

reinstatement under Section 4; however, 

you may apply for reinstatement under 

Section 5, Section 6, or Section 7.

Section 5. Select this section if:

• You’re ineligible to file for reinstatement 

under Section 4, and

• You’re submitting this application not 

later than 15 months after the later of the 

date of your Revocation Letter or the date 

on which the IRS posted your name on the 

Auto-Revocation List at 

apps.irs.gov/app/eos/.

By selecting this item, you’re also 

attesting that you filed the required annual 

returns, your failure to file was not 

intentional, and you have put in place 

procedures to file required returns or 

notices in the future.

Describe how you exercised ordinary 

business care and prudence in 

determining and attempting to comply with 

your filing requirements in at least 1 of the 

3 years of revocation. Include a detailed 

explanation of all the facts and 

circumstances that led to the failure, the 

discovery of the failure, and the steps you 

have taken or will take to avoid or to 

mitigate future failures to file timely returns 

or notices.

Section 6. Select this section if you are 

applying for reinstatement of your 

tax-exempt status more than 15 months 

from the later of the date of the Revocation 

Letter or the date on which the IRS posted 

your name on the Auto-Revocation List at 

apps.irs.gov/app/eos/.

By selecting this item, you’re also 

attesting that you filed the required annual 

returns, your failure to file wasn’t 

intentional, and you have put in place 

procedures to file required returns or 

notices in the future.

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CAUTION

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Describe how you exercised ordinary 

business care and prudence in 

determining and attempting to comply with 

your filing requirements in each of the 3 

years of revocation. Include a detailed 

explanation of all the facts and 

circumstances that led to the failure, the 

discovery of the failure, and the steps you 

have taken or will take to avoid or mitigate 

future failures to file timely returns or 

notices.

Section 7. Select this section if you’re 

seeking reinstatement with an effective 

date of reinstatement of the date of 

submission of this application.

Line 2. Generally, if you didn’t file Form 

1023 within 27 months of formation, the 

effective date of your exempt status will be 

the date you filed Form 1023 (submission 

date). We may grant requests for an 

earlier effective date when there’s 

evidence to establish you acted 

reasonably and in good faith, and the 

grant of relief won’t prejudice the interests 

of the government.

Select the appropriate box to indicate 

whether you accept the submission date 

as the effective date of your exempt status 

or whether you are requesting an earlier 

effective date.

Line 2a. You may be eligible for 

consideration for relief from the 

requirement that you file Form 1023 within 

27 months of formation if you can 

establish that you acted reasonably and in 

good faith, and that granting an extension 

won’t prejudice the interests of the 

government.

Describe in detail your reasons for filing 

late, how you discovered your failure to 

file, any reliance on professional advice or 

advice from the IRS, and any other 

information you believe will support your 

request for relief. Also, you may want to 

provide a comparison of (1) what your 

aggregate tax liability would be if you had 

filed this application within the 27-month 

period with (2) what your aggregate 

liability would be if you were exempt as of 

your formation date.

We may consider the following factors.

• You filed Form 1023 before we 

discovered your failure to file.

• You failed to file because of intervening 

events beyond your control.

• You exercised reasonable diligence, 

but you weren’t aware of the filing 

requirements. (The complexity of your 

filing and experience in these matters may 

be taken into consideration.)

• You reasonably relied on written advice 

from us.

• You reasonably relied on the advice of 

a qualified tax professional who failed to 

file or advise you to file Form 1023.

Schedule F. Low-Income 

Housing

To qualify for tax exemption, low-income 

housing must provide affordable housing 

for a significant segment of individuals in 

your community with low incomes. Your 

low-income housing may serve a 

combination of purposes, such as for 

poor, frail, and elderly persons.

Specific Line Items

Line 1. The “type” of facility may be an 

apartment complex, condominium, 

cooperative, or private residence, etc.

Line 6. Answer “Yes,” if you charge daily, 

weekly, monthly, or annual fees or 

maintenance charges.

Line 8. Government programs include 

federal, state, or local government 

programs.

Schedule G. Successors 

to Other Organizations

You should consider this schedule as a 

successor organization if any of the 

following situations pertain to you.

• You took or will take over activities 

previously conducted by another 

organization.

• You took or will take over 25% or more 

of the fair market value of the net assets 

of another organization.

• You were established upon the 

conversion of an organization from 

for-profit to non-profit status.

The other organization is the 

predecessor organization. You should 

complete this schedule regardless of 

whether the predecessor (other 

organization) was exempt or not exempt 

from federal income tax.

For purposes of this schedule, a 

“for-profit” organization is one in which 

persons are permitted to have an 

ownership or partnership interest, such as 

corporate stock. It includes sole 

proprietorships, corporations, and other 

entities that provide for ownership 

interests.

Schedule H. Organizations 

Providing Scholarships, 

Fellowships, Educational 

Loans, or Other 

Educational Grants to 

Individuals and Private 

Foundations Requesting 

Advance Approval of 

Individual Grant 

Procedures

Complete this schedule if you provide 

scholarships, fellowships, grants, loans, or 

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other distributions to individuals for 

educational purposes. When answering 

the questions on this schedule, you should 

demonstrate how these distributions 

further your exempt purposes.

If you’re a private foundation, 

you’re subject to the rules under 

section 4945 and may incur an 

excise tax if you make grants for the 

purpose described above without seeking 

advance approval of your grant-making 

procedures (see Schedule H–Section II).

Generally, distributions made to 

individuals may advance educational 

purposes if selection is made:

• In a non-discriminatory fashion in terms 

of racial preference;

• Based on need and/or merit; and

• To a charitable class in terms of being 

available to an open-ended group, rather 

than to pre-selected individuals.

A scholarship or fellowship is tax free to 

the recipient only if he or she is a 

candidate for a degree at an eligible 

educational institution and uses the 

scholarship or fellowship to pay qualified 

education expenses.

Qualified education expenses include 

tuition and fees; and course-related 

expenses such as books, supplies, and 

equipment. Room and board, travel, 

research, clerical help, and non-required 

equipment aren’t qualified education 

expenses. See Pub. 970, Tax Benefits for 

Education, for additional information.

Selection of individuals using a lottery 

system generally hasn’t been approved by 

the IRS.

Specific Line Items

Section I

Line 1. If you conduct more than one 

grant program, describe each program 

separately.

CAUTION

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If you make educational loans, 

describe the terms of the loan (for 

example, the factors you consider in 

selecting or approving loan recipients, 

interest rate, duration, forgiveness 

provision, etc.). Also, describe whether 

any financial institutions or other lenders 

are involved in your program.

Explain how you will publicize your 

program and whether you publicize to the 

general public or to another group of 

possible recipients. Include specific 

information about the geographic area in 

which your program will be publicized and 

the means you will use, such as through 

newspaper advertisements, school district 

announcements, or community groups.

Line 2. Organizations that make grants to 

individuals must maintain adequate 

records and case histories showing the 

name and address of each recipient, 

pursuant Rev. Rul. 56-304, 1956-2 C.B. 

306 but don’t provide this information as 

part of your application.

Section II

If you requested public charity 

classification in Part VII, line 1, don’t 

complete Schedule H – Section II.

Line 1. Answer “Yes,” if you’re a private 

foundation and you’re requesting 

advance approval of your grant-making 

procedures under section 4945(g). 

Answer “No,” if you’re a private foundation 

but don’t wish to request advance 

approval of your grant-making procedures 

under section 4945(g). If you answer “No” 

the amounts you distribute as educational 

grants provided to individuals may be 

considered taxable expenditures under 

section 4945.

For more information about advance 

approval of grant-making procedures of a 

private foundation, go to IRS.gov/

charities-non-profit/private-foundations/

advance-approval-of-grant-makingprocedures.

Line 1a. Check the box for section 

“4945(g)(1)” if your award qualifies as a 

scholarship or fellowship grant that’s 

awarded on an objective and 

nondiscriminatory basis and is used for 

study at a school (see Schedule B for 

what is considered a school).

Check the box for “4945(g)(3)” if the 

purpose of your award is to achieve a 

specific objective, produce a report or 

other similar product, or improve or 

enhance a literary, artistic, musical, 

scientific, teaching, or other similar 

capacity, skill, or talent of the recipient. 

Include your educational loan program 

under this section.

You may check more than one box.

If your award qualifies as a prize 

or award that is subject to the 

provisions of section 74(b) and 

your recipient is selected from the general 

public, you don’t have to request advance 

approval of your grant-making procedures 

since a prize or award isn’t subject to the 

advance approval procedure requirements 

because it isn’t a grant for travel, study, or 

other similar purposes. See Rev. Ruls. 

77-380, 1977-2 C.B. 419; 76-460, 1976-2 

C.B. 371; and 75-393, 1975-2 C.B. 451.

Line 4. Answer “Yes,” if you award 

scholarships on a preferential basis 

because you require, as an initial 

qualification, that the individual be an 

employee or be related to an employee of 

a particular employer.

Line 7. For purposes of this schedule, a 

program for children of employees of a 

particular employer includes children and 

family members of employees.

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Instructions for Form 1023 -23-
Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United 

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figure and collect the right amount of tax.

You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form 

displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents 

may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, 

as required by section 6103. However, certain returns and return information of tax exempt organizations and trusts are subject to 

public disclosure and inspection, as provided by section 6104.

The time needed to complete and file this form will vary depending on individual circumstances. The estimated burden for tax 

exempt organizations filing this form is approved under OMB control number 1545-0047 and is included in the estimates shown in the 

instructions for their information return.

Comments and suggestions. If you have comments concerning the accuracy of this time estimate or suggestions for making this 

form simpler, we would be happy to hear from you. You can send us comments from IRS.gov/FormComments. Or you can write to:

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Washington, DC 20224

-24- Instructions for Form 1023
Appendix A: Sample Conflict of Interest Policy

Note. This Sample Conflict of 

Interest Policy is intended to 

provide an example of a 

conflict of interest policy for 

organizations. The sample 

conflict of interest policy does 

not prescribe any specific 

requirements. Therefore, 

organizations should use a 

conflict of interest policy that 

best fits their organization.

Note. Items marked Hospital 

insert — for hospitals that 

complete Schedule C are 

intended to be adopted by 

hospitals.

Article I

Purpose

The purpose of the conflict of 

interest policy is to protect this 

tax-exempt organization's 

(Organization) interest when it 

is contemplating entering into 

a transaction or arrangement 

that might benefit the private 

interest of an officer or director 

of the Organization or might 

result in a possible excess 

benefit transaction. This policy 

is intended to supplement but 

not replace any applicable 

state and federal laws 

governing conflict of interest 

applicable to nonprofit and 

charitable organizations.

Article II

Definitions

1. Interested Person Any 

director, principal officer, or 

member of a committee with 

governing board delegated 

powers, who has a direct or 

indirect financial interest, as 

defined below, is an interested 

person.

[Hospital insert – for 

hospitals that complete 

Schedule C. If a person is an 

interested person with respect 

to any entity in the health care 

system of which the 

organization is a part, he or 

she is an interested person 

with respect to all entities in the 

health care system.]

2. Financial Interest A 

person has a financial interest 

if the person has, directly or 

indirectly, through business, 

investment, or family:

a. An ownership or 

investment interest in any 

entity with which the 

Organization has a 

transaction or 

arrangement,

b. A compensation 

arrangement with the 

Organization or with any 

entity or individual with 

which the Organization 

has a transaction or 

arrangement, or

c. A potential ownership or 

investment interest in, or 

compensation 

arrangement with, any 

entity or individual with 

which the Organization is 

negotiating a transaction 

or arrangement.

d. Compensation includes 

direct and indirect 

remuneration as well as 

gifts or favors that aren’t 

insubstantial. A financial 

interest isn’t necessarily a 

conflict of interest. Under 

Article III, Section 2, a 

person who has a financial 

interest may have a 

conflict of interest only if 

the appropriate governing 

board or committee 

decides that a conflict of 

interest exists.

Article III

Procedures

1. Duty to Disclose In 

connection with any actual or 

possible conflict of interest, an 

interested person must 

disclose the existence of the 

financial interest and be given 

the opportunity to disclose all 

material facts to the directors 

and members of committees 

with governing board 

delegated powers considering 

the proposed transaction or 

arrangement.

2. Determining Whether a 

Conflict of Interest Exists 

After disclosure of the financial 

interest and all material facts, 

and after any discussion with 

the interested person, he/she 

shall leave the governing 

board or committee meeting 

while the determination of a 

conflict of interest is discussed 

and voted upon. The 

remaining board or committee 

members shall decide if a 

conflict of interest exists.

3. Procedures for Addressing the Conflict of Interest 

a. An interested person 

may make a presentation 

at the governing board or 

committee meeting, but 

after the presentation, 

he/she shall leave the 

meeting during the 

discussion of, and the vote 

on, the transaction or 

arrangement involving the 

possible conflict of 

interest.

b. The chairperson of the 

governing board or 

committee shall, if 

appropriate, appoint a 

disinterested person or 

committee to investigate 

alternatives to the 

proposed transaction or 

arrangement.

c. After exercising due 

diligence, the governing 

board or committee shall 

determine whether the 

Organization can obtain, 

with reasonable efforts, a 

more advantageous 

transaction or arrangement 

from a person or entity that 

would not give rise to a 

conflict of interest.

d. If a more advantageous 

transaction or arrangement 

isn’t reasonably possible 

under circumstances not 

producing a conflict of 

interest, the governing 

board or committee shall 

determine by a majority 

vote of the disinterested 

directors whether the 

transaction or arrangement 

is in the Organization best 

interest, for its own benefit, 

and whether it is fair and 

reasonable. In conformity 

with the above 

determination, it shall 

make its decision as to 

whether to enter into the 

transaction or 

arrangement.

4. Violations of the Conflict 

of Interest Policy 

a. If the governing board or 

committee has reasonable 

cause to believe a member 

has failed to disclose 

actual or possible conflicts 

of interest, it shall inform 

the member of the basis 

for such belief and afford 

the member an opportunity 

to explain the alleged 

failure to disclose.

b. If, after hearing the 

member's response and 

after making further 

investigation as warranted 

by the circumstances, the 

governing board or 

committee determines the 

member has failed to 

disclose an actual or 

possible conflict of 

interest, it shall take 

appropriate disciplinary 

and corrective action.

Article IV

Records of Proceedings

The minutes of the governing 

board and all committees with 

board delegated powers shall 

contain:

a. The names of the persons 

who disclosed or otherwise 

were found to have a financial 

interest in connection with an 

actual or possible conflict of 

interest, the nature of the 

financial interest, any action 

taken to determine whether a 

conflict of interest was present, 

and the governing board's or 

committee's decision as to 

whether a conflict of interest in 

fact existed.

b. The names of the persons 

who were present for 

discussions and votes relating 

to the transaction or 

arrangement, the content of 

the discussion, including any 

alternatives to the proposed 

transaction or arrangement, 

and a record of any votes 

taken in connection with the 

proceedings.

-25-
Article V

Compensation

a. A voting member of the 

governing board who receives 

compensation, directly or 

indirectly, from the 

Organization for services is 

precluded from voting on 

matters pertaining to that 

member's compensation.

b. A voting member of any 

committee whose jurisdiction 

includes compensation 

matters and who receives 

compensation, directly or 

indirectly, from the 

Organization for services is 

precluded from voting on 

matters pertaining to that 

member's compensation.

c. No voting member of the 

governing board or any 

committee whose jurisdiction 

includes compensation 

matters and who receives 

compensation, directly or 

indirectly, from the 

Organization, either 

individually or collectively, is 

prohibited from providing 

information to any committee 

regarding compensation.

[Hospital insert-for 

hospitals that complete 

Schedule C Physicians who 

receive compensation from the 

Organization, whether directly 

or indirectly or as employees 

or independent contractors, 

are precluded from 

membership on any committee 

whose jurisdiction includes 

compensation matters. No 

physician, either individually or 

collectively, is prohibited from 

providing information to any 

committee regarding physician 

compensation.]

Article VI

Annual Statements

Each director, principal officer, 

and member of a committee 

with governing board 

delegated powers shall 

annually sign a statement 

which affirms such person:

a. Has received a copy of 

the conflict of interest 

policy,

b. Has read and 

understands the policy,

c. Has agreed to comply 

with the policy, and

d. Understands the 

Organization is charitable 

and in order to maintain its 

federal tax exemption it 

must engage primarily in 

activities that accomplish 

one or more of its 

tax-exempt purposes.

Periodic Reviews

To ensure the Organization 

operates in a manner 

consistent with charitable 

purposes, and doesn't engage 

in activities that could 

jeopardize its tax-exempt 

status, periodic reviews shall 

be conducted. The periodic 

reviews shall, at a minimum, 

include the following subjects:

a. Whether compensation 

arrangements and benefits 

are reasonable, based on 

competent survey 

information, and the result 

of arm's length bargaining.

b. Whether partnerships, 

joint ventures, and 

arrangements with 

management 

organizations conform to 

the Organization's written 

policies, are properly 

recorded, reflect 

reasonable investment or 

payments for goods and 

services, further charitable 

purposes and don't result 

in inurement, 

impermissible private 

benefit, or in an excess 

benefit transaction.

Article VIII

Use of Outside Experts

When conducting the periodic 

reviews, as provided for in 

Article VII, the Organization 

may, but need not, use outside 

advisors. If outside experts are 

used, their use shall not relieve 

the governing board of its 

responsibility for ensuring 

periodic reviews are 

conducted.

-26-
States With Statutory Provisions Satisfying the Requirements of 

Internal Revenue Code Section 508(e)

The following states have adopted legislation satisfying the requirements of Section 508(e) relating to 

private foundation governing instruments. Information derived from Revenue Ruling 75-38, 1975-1 

C.B. 161.

Appendix B:

ALABAMA — except where otherwise provided by a decree of a court of competent jurisdiction or by a provision in the 

private foundation's governing instrument, which in either case has been entered or made after October 1, 1971, and 

expressly limits the applicability of state law. 

ALASKA — except for such private foundations that expressly provide in their governing instruments that the applicable 

sections of Alaska law don't apply to them.

ARKANSAS — except for such private foundations which expressly provide in their governing instruments that the 

applicable sections of Arkansas law don't apply to them and except in the case of trusts where otherwise provided by decree 

of a court of competent jurisdiction.

CALIFORNIA — except where otherwise provided by a court of competent jurisdiction. 

COLORADO — with respect to trusts that are private foundations except where otherwise provided by a court of competent 

jurisdiction. 

CONNECTICUT — except where otherwise provided by a court of competent jurisdiction. 

DELAWARE — except for such private foundations, which expressly provide in their governing instruments that the 

applicable sections of Delaware law don't apply to them. 

DISTRICT OF COLUMBIA — except for such corporations, which expressly provide in their governing instruments that the 

applicable sections of District of Columbia law don't apply to them and except in the case of trusts where otherwise provided 

by a court of competent jurisdiction. (For purposes of this statute, corporations include corporations organized under any Act 

of Congress applicable to the District of Columbia as well as corporations organized under the laws of the District of 

Columbia.) 

FLORIDA — except for such trusts that file a proper election not to be subject to the applicable provisions of Florida law and 

for such corporations as to which a court of competent jurisdiction has otherwise determined.

GEORGIA — except for such private foundations that file a proper election not to be subject to such law.

HAWAII — no exceptions.

IDAHO — except for such private foundations that expressly provide in their governing instruments that the applicable 

sections of Idaho law don't apply to them.

ILLINOIS — except for such corporations that have express provisions to the contrary in their articles of incorporation and 

except for trusts where it is otherwise provided by a court of competent jurisdiction. 

INDIANA — except where otherwise determined by a court of competent jurisdiction with respect to private foundations 

organized before January 1, 1970.

IOWA — except for such private foundations which expressly provide in their governing instruments that the applicable 

sections of Iowa law don't apply to them.

KANSAS — except where otherwise provided by a court of competent jurisdiction. 

KENTUCKY — except, with respect to corporations in existence on July 1, 1972, to the extent that such a corporation 

provides to the contrary by amendment to its articles of incorporation adopted after July 1, 1972, and, with respect to trusts in 

existence on July 1, 1972, where action is properly commenced on or before December 31, 1972, in a court of competent 

jurisdiction to excuse the trust from compliance with the requirements of section 508(e) of the Code.

LOUISIANA — except for such private foundations that expressly provide in their governing instruments that the applicable 

sections of Louisiana law don't apply to them. 

MAINE — except where otherwise provided by a court of competent jurisdiction. 

MARYLAND — except where otherwise provided by a court of competent jurisdiction. 

MASSACHUSETTS — except where otherwise provided by a court of competent jurisdiction. 

MICHIGAN — with respect to trusts that are private foundations except for such private foundations which file a notice of 

inconsistency under Michigan law. 

-27-
MINNESOTA — except for private foundations that have been held by a court of competent jurisdiction not to be affected by 

such state statute. 

MISSISSIPPI — except where otherwise provided by a court of competent jurisdiction. 

MISSOURI — except for private foundations that have been held by a court of competent jurisdiction not to be affected by 

such state statute. 

MONTANA — except in the case of trusts where otherwise provided by court decree entered after March 28, 1974, and 

except in the case of a corporation that has an express provision to the contrary in its articles of incorporation.

NEBRASKA — except for such trusts that effectively elect to be excluded from the applicable sections of Nebraska law, for 

such corporations which have governing instruments expressly providing to the contrary, and except as a court of competent 

jurisdiction has otherwise determined in any given case. 

NEVADA — no exceptions. 

NEW HAMPSHIRE — except where it is otherwise provided by a court of competent jurisdiction. 

NEW JERSEY — except for such private foundations that expressly provide in their governing instruments that the 

applicable sections of New Jersey law don't apply to them. 

NEW YORK — except where such law conflicts with any mandatory direction of an instrument by which assets were 

transferred prior to June 1, 1971, and such conflicting direction hasn’t been removed legally. 

NORTH CAROLINA — except for such private foundations which expressly provide in their governing instruments that the 

applicable sections of North Carolina law don't apply to them and except for trusts that have their governing instruments 

reformed by a decree of the Superior Court of North Carolina. 

NORTH DAKOTA — with respect to trusts that are private foundations except where otherwise provided by a court of 

competent jurisdiction.

OHIO — except in the case of trusts where it is provided otherwise by a court of competent jurisdiction and except in the 

case of corporations in existence on September 17, 1971, which expressly adopt contrary provisions in their governing 

instruments after September 17, 1971. 

OKLAHOMA — except for such private foundations that file a proper election not to be subject to such law.

OREGON — no exceptions.

PENNSYLVANIA — except where otherwise provided by a court of competent jurisdiction. 

RHODE ISLAND — except where otherwise provided by a court of competent jurisdiction. 

SOUTH CAROLINA — except for private foundations that expressly provide in their governing instruments that the 

applicable sections of South Carolina law don't apply to them. 

SOUTH DAKOTA — except where otherwise provided by a court of competent jurisdiction. 

TENNESSEE — except where otherwise provided by a court of competent jurisdiction. 

TEXAS — except for such private foundations that a proper election not to be subject to such law. 

UTAH — with respect to trusts that are private foundations except where otherwise provided by a court of competent 

jurisdiction.

VERMONT — except where otherwise provided by a court of competent jurisdiction. 

VIRGINIA — except for private foundations whose governing instruments contain express provisions to the contrary or that 

have filed a proper election not to be subject to such law. 

WASHINGTON — except for such private foundations that expressly provide in their governing instruments that the 

applicable sections of Washington law don't apply to them. 

WEST VIRGINIA — with respect to trusts that are private foundations except for such trusts which provide in their governing 

instruments that the applicable sections of West Virginia law don't apply to them. 

WISCONSIN — except as may otherwise be provided by decree of a court of competent jurisdiction. 

WYOMING — except where otherwise provided by a court of competent jurisdiction. 

-28-
Appendix C: Glossary of Terms

Adjusted net income (for Schedule D) Adjusted net income includes: gross income from any unrelated trade or 

business; gross income from functionally related businesses; interest 

payments received on loans; amounts received or accrued as repayments 

of amounts taken as qualifying distributions for any tax year; amounts 

received or accrued from the sale or other disposition of property to the 

extent acquisition of the property was treated as a qualifying distribution 

for any tax year; any amounts set aside for a specific project to the extent 

the full set-aside was not necessary for the project; interest on 

government obligations normally excluded under section 103; net 

short-term capital gains on sale or other disposition of property; and 

income received from an estate if the estate is considered terminated for 

income tax purposes because of a prolonged administration period. 

It doesn't include: gifts, grants, and contributions received; long-term 

capital gains or losses; net section 1231 gains; capital gain dividends; the 

excess of fair market value over adjusted basis of property distributed to 

the U.S. or a possession or political subdivision, a state or its political 

subdivision, a charitable trust, or corporation for public purposes; or 

income received from an estate during the administration period.

In computing adjusted net income, deduct the following: ordinary and 

necessary expenses paid or incurred for the production or collection of 

gross income, or for the management, conservation, or collection of gross 

income (includes operating expenses such as compensation of officers, 

employee wages and salaries, interest, rent, and taxes); straight-line 

depreciation and depletion (not percentage depletion); and expenses and 

interest paid or incurred to carry tax-exempt obligations. Don't deduct net 

short-term capital losses for the year in which they occur (these losses 

cannot be carried back or carried over to earlier or later tax years); the 

excess of expenses for property used for exempt purposes over the 

income received from the property; charitable contributions made by you; 

net operating losses; and special deductions for corporations.

Arm's length A transaction between parties having adverse (or opposing) interests 

where none of the participants are in a position to exercise substantial 

influence over the transaction because of business or family 

relationship(s) with more than one of the parties.

Authorized representative An individual eligible to practice before the IRS who holds a power of 

attorney (Form 2848 or other similar documents) that authorizes him or 

her to represent the organizations in tax matters, including the application 

for tax-exempt status.

Bingo A game of chance played with cards that are generally printed with 5 rows 

of 5 squares each, on which participants place markers to form a 

pre-selected pattern to win the game. Bingo is gambling.

Business relationship Employment and contractual relationships, and common ownership of a 

business where any officers, directors, or trustees, individually or together, 

possess more than a 35% ownership interest in common. Ownership 

means voting power in a corporation, profits interest in a partnership, or 

beneficial interest in a trust.

Bylaws The internal rules and regulations of an organization.

-29-
Certification of filing Evidence that, on a specific date, articles of incorporation (for a 

corporation) or articles of organization (for a limited liability company) 

were accepted for filing by appropriate state authority resulting in the 

creation of a state-law entity.

Community The local or regional geographic area to be served by an organization.

Compensation All forms of income from working, including salary or wages; deferred 

compensation; retirement benefits, whether in the form of a qualified or 

non-qualified employee plan (for example, pensions or annuities); fringe 

benefits (for example, personal vehicle, meals, lodging, personal and 

family educational benefits, low interest-loans, payment of personal travel, 

entertainment, or other expenses, athletic or country club membership, 

and personal use of your property); and bonuses.

Conflict of interest policy A set of procedures to identify potential conflicts of interest and to reduce 

the likelihood that persons in a position of authority over an organization 

may use that authority to receive an inappropriate benefit. A conflict of 

interest may arise when a person in a position of authority over an 

organization, such as a director, officer, or manager, may benefit 

personally from a decision he or she could make. 

Controlled by disqualified persons See the definition of a disqualified person below. A section 509(a)(3) 

supporting organization, may not be controlled directly or indirectly by 

disqualified persons (other than the organization’s officers, directors or 

trustees). An organization is controlled by disqualified persons if 

disqualified persons can exercise 50% or more of the total voting power 

held by the organization’s governing body. For this purpose, controlled 

includes the authority to affect significant decisions, such as power over 

investment decisions, or charitable disbursement decisions, as well as the 

power to veto such decision. Control may be direct or indirect. 

Corporation An entity organized under a federal or state corporation law (including the 

statutes of a federally recognized Indian tribal or Alaskan native 

government). 

Develop The planning, financing, construction, or provision of similar services 

involved in the acquisition of real property, such as land or a building.

-30-
Disqualified person Any individual or organization that is any of the following relationships.

a. A substantial contributor to you (see Substantial contributor).

b. An officer, director, trustee, or any other individual who has similar 

powers or responsibilities. 

c. An individual who owns more than 20% of the total combined voting 

power of a corporation that is a substantial contributor to you.

d. An individual who owns more than 20% of the profits interest of a 

partnership that is a substantial contributor to you.

e. An individual who owns more than 20% of the beneficial interest of a 

trust or estate that is a substantial contributor to you.

f. A member of the family of any individual described in a, b, c, d, or e 

above.

g. A corporation in which any individuals described in a, b, c, d, e, or f 

above hold more than 35% of the total combined voting power.

h. A trust or estate in which any individuals described in a, b, c, d, e, or 

f above hold more than 35% of the beneficial interests.

i. A partnership in which any individuals described a, b, c, d, e, or f 

above hold more than 35% of the profits interest.

Earmark Donations or other contributions given to an organization on the condition 

or understanding that they will be used to assist particular individuals or 

specific identified groups.

Expenses Financial burdens or outlays, costs (of doing business), and business 

outlays chargeable against revenues. For purposes of this form, expenses 

mean direct and indirect expenses.

Fair market value The price at which property, or the right to use property, would change 

hands between a willing buyer and a willing seller, neither being under any 

compulsion to buy, sell, or transfer property or the right to use property, 

and both having reasonable knowledge of relevant facts.

Family Includes an individual's spouse, ancestors, children, grandchildren, 

great-grandchildren, siblings (whether by whole or half-blood), and the 

spouses of children, grandchildren, great-grandchildren, and siblings.

Foreign country A country other than the United States, its territories and possessions, and 

the District of Columbia.

For-profit A business entity whose activities are conducted or maintained to make a 

profit (for example, revenues greater than expenses) for its private 

shareholders or owners.

Foundation manager Officers, directors, or trustees, or an individual having powers or 

responsibilities similar to those of a foundation's officers, directors, or 

trustees.

-31-
Fundraising The organized activity of raising funds, whether by volunteers, employees, 

or paid independent contractors.

Gaming The term gaming includes activities such as Bingo, Beano, lotteries, 

pull-tabs, pari-mutuel betting, Calcutta wagering, pickle jars, punch 

boards, tip boards, tip jars, certain video games, 21, raffles, keno, 

split-the-pot, and other games of chance.

Gross investment income As defined in section 509, gross investment income means the gross 

amount of income from interest, dividends, payments with respect to 

securities loans, rents, and royalties; but not including any such income to 

the extent included in computing the tax imposed by section 511.

Gross receipts For purposes of Part VI-A. Statement of Revenues and Expenses, gross 

receipts include monies earned from activities related to an organization’s 

charitable or other section 501(c)(3) activities, such as selling admissions 

or merchandise, performing services, or furnishing facilities.

Hospital Hospital or medical care includes the treatment of any physical or mental 

disability or condition, whether on an inpatient or outpatient basis. A 

hospital includes the following.

a. Hospitals and rehabilitation institutions, outpatient clinics, or 

community mental health or drug treatment centers if the principal 

purpose or function is the providing of medical or hospital care or 

medical education or research.

b. Medical research organizations, if the principal purpose or function 

is the continuous active conduct of medical research in conjunction 

with a hospital. 

Influence legislation The act of directly contacting or urging the public to contact members of a 

legislative body for the purpose of proposing, supporting, or opposing 

legislation. Attempting to influence legislation includes advocating the 

adoption or rejection of legislation.

Intellectual property A type of property (distinct from real or personal property) including the 

following.

a. Patents (for inventions).

b. Copyrights (for literary and artistic works such as novels, poems, 

plays, films, musical works, drawings, paintings, photographs, 

sculptures, architectural designs, performances, recordings, film, and 

radio or television programs).

c. Trade names, trademarks, and service marks (for symbols, names, 

images, and designs).

d. Formulas, know-how, and trade secrets.

Joint venture A legal agreement in which the parties jointly undertake a transaction for 

mutual profit. Generally, each person contributes assets and shares risks. 

Like a partnership, joint ventures can involve any type of business 

transaction and the “persons” involved can be individuals, groups of 

individuals, companies, or corporations.

-32-
Limited liability company A limited liability company (LLC) is a business entity organized in the 

United States under state law. Generally, an LLC may be classified for 

federal income tax purposes as a partnership, corporation, or an entity 

disregarded as separate from its owner by applying the rules in Regulation 

section 301.7701-3. However, an LLC that has been determined to be, or 

claims to be, exempt from taxation under section 501(a) is treated as 

having made an election to be classified as a corporation under 

Regulation section 301.7701-3(c)(1)(v). 

Low-income housing Rental or ownership housing provided to persons based on financial need.

Mailing address Address where correspondence is received.

Manage Manage means to direct or administer.

Medical care The treatment of any physical or mental disability or condition, whether on 

an inpatient or outpatient basis.

Medical research organization An organization whose principal purpose or function is the continuous 

active conduct of medical research in conjunction with a hospital.

Net income (for Schedule D) See Adjusted net income.

Non-fixed payment A non-fixed payment means a payment that depends on discretion. For 

example, a bonus of up to $100,000 that is based on an evaluation of 

performance by the governing board is a non-fixed payment because the 

governing body has discretion over whether the bonus is paid and the 

amount of the bonus.

Organizing document The organizing document depends on the form of the organization. For a 

corporation, the document is the articles of incorporation. For an LLC, the 

document is the articles of organization. For an unincorporated 

association, the document is the articles of association or constitution. The 

organizing document of a trust is the trust agreement.

Political campaign intervention An organization participates in a political campaign, if it promotes or 

opposes, through political literature, brochures, pamphlets, hosting or 

participating in events, etc., the candidacy of an individual for public office. 

Debates and nonpartisan voter education aren’t considered political.

Predecessor An organization whose activities or assets were taken over by another 

organization.

Private foundation An organization that is exempt under section 501(c)(3) is a private 

foundation unless it is a church, school, hospital, governmental unit, entity 

that undertakes testing for public safety, organization that has broad 

financial support from the general public, or organization that supports one 

or more other organizations that are themselves classified as public 

charities.

Private operating foundation A type of private foundation that makes qualifying distributions directly for 

the active conduct of its educational, charitable, and religious purposes. 

“Directly for the active conduct” means that the distributions are used by 

the foundation itself to carry out the programs for which it is organized and 

operated. Grants made to assist other organizations or individuals are 

normally considered indirect.

-33-
Public charity An organization that is exempt under section 501(c)(3) is excepted from 

private foundation status because it is described in section 509(a)(1) 

(which cross references sections 170(b)(1)(i) through (vi), and (ix)), 509(a)

(2), 509(a)(3), or 509(a)(4).

Reasonable compensation Reasonable compensation is the amount that would ordinarily be paid for 

like services by like organizations under like circumstances as of the date 

the compensation arrangement is made. Reasonable compensation is 

important because excessive benefits in the form of compensation to 

disqualified persons may result in the imposition of excise taxes and 

jeopardize the organization's tax-exempt status.

Related The family or business relationships between persons.

Relationship A relationship may exist between one organization and another in the 

following situations.

a. One organization controls the other through common officers, 

directors, or trustees, or through authority to approve budgets or 

expenditures.

b. Both organizations were created at approximately the same time 

and by the same persons.

c. The organizations operate in a coordinated manner with respect to 

facilities, programs, employees, or other activities.

d. The same persons exercise substantial influence over both 

organizations. 

Revenue Revenue means gross revenue amounts.

Revenue Procedure An official statement of a procedure published in the IRS Internal Revenue 

Bulletin (previously the Cumulative Bulletin) that either affects the rights or 

duties of taxpayers or other members of the public under the Internal 

Revenue Code and related statutes, treaties, and regulations or, although 

not necessarily affecting the rights and duties of the public, should be a 

matter of public knowledge. 

Revenue Ruling An official interpretation by the IRS of the Internal Revenue laws and 

related statutes, treaties, and regulations, that has been published in the 

IRS Internal Revenue Bulletin (previously the Cumulative Bulletin). 

Revenue Rulings are issued only by the Office of Associate Chief Counsel 

and are published for the information and guidance of taxpayers, IRS 

officials, and others concerned.

-34-
School A school is an educational organization whose primary function is the 

presentation of formal instruction and that normally maintains a regular 

faculty and curriculum and normally has a regularly enrolled body of pupils 

or students in attendance at the place where its educational activities are 

regularly carried on. A school may include the following.

a. Primary, secondary, preparatory, or high school.

b. College or university.

c. Trade or technical school. 

d. Nursery or preschool.

e. School that you operate as an activity, such as school that is 

operated as an activity of a museum, historical society, or church.

Similarly situated Similarly situated organizations means tax-exempt or taxable 

organizations of a comparable size, purpose, and resources.

Substantial contributor An individual or organization that contributed more than $5,000 to an 

organization from the date it was formed or other date that its exemption 

would be effective, to the end of the year in which the contributions were 

received. This total amount contributed must also be more than 2% of all 

the contributions the organization received. A creator of a trust is treated 

as a substantial contributor regardless of the amount contributed.

Successor An organization that took over: 

a. More than a negligible amount of the activities that were previously 

conducted by another organization, 

b. 25% or more of the fair market value of the net assets of another 

organization, or

c. Was established upon the conversion of an organization from 

for-profit to non-profit status. 

Trust A trust is an entity that may be formed by a trust agreement or declaration 

of trust. A trust may also be formed through a will. 

Unincorporated association An unincorporated association formed under state law must have at least 

two members who have signed a written document for a specifically 

defined purpose.

-35-
Unrelated business income Income from a trade or business regularly conducted by an exempt 

organization and not substantially related to the performance by the 

organization of its exempt purpose or function. See Pub. 598.

Unusual grant Substantial contribution or bequest from a disinterested person that, by its 

size, adversely affects classification as a public charity. It is:

a. Unusual, 

b. Unexpected, and

c. Received from an unrelated party. 

-36-
Appendix D: National Taxonomy of 

Exempt Entities (NTEE) Codes

Arts, Culture & Humanities

Code

A01 Alliances & Advocacy

A02 Management & Technical 

Assistance

A03 Professional Societies & 

Associations

A05 Research Institutes & Public 

Policy Analysis

A11 Single Organization Support

A12 Fund Raising & Fund Distribution

A19 Support N.E.C.

A20 Arts & Culture

A23 Cultural & Ethnic Awareness

A24 Folk Arts

A25 Art Education

A26 Arts & Humanities Councils & 

Agencies

A27 Community Celebrations

A30 Media & Communications

A31 Film & Video

A32 Television

A33 Printing & Publishing

A34 Radio

A40 Visual Arts

A50 Museums

A51 Art Museums

A52 Children’s Museums

A54 History Museums

A56 Natural History & Natural 

Science Museums

A57 Science & Technology Museums

A60 Performing Art

A61 Performing Arts Centers

A62 Dance

A63 Ballet

A65 Theater

A68 Music

A69 Symphony Orchestras

A6A Opera

A6B Singing & Choral Groups

A6C Bands & Ensembles

A6E Performing Arts Schools

A70 Humanities Organizations

A80 Historical Organizations

A82 Historical Societies & Historic 

Preservation

A84 Commemorative Events

A90 Arts Service

A99 Arts, Culture & Humanities 

N.E.C.

Education

Code

B01 Alliances & Advocacy 

Organizations

B02 Management & Technical 

Assistance

B03 Professional Society & 

Associations

B05 Research Institutes & Public 

Policy Analysis

B11 Single Organization Support

B12 Fundraising & Fund Distribution

B19 Support N.E.C.

B20 Elementary & Secondary 

Schools

B21 Preschools

B24 Primary & Elementary Schools

B25 Secondary & High Schools

B28 Special Education

B29 Charter Schools

B30 Vocational & Technical Schools

B40 Higher Education Institutions

B41 Two-Year Colleges

B42 Two-Year Colleges

B43 Undergraduate Colleges

B50 Graduate & Professional Schools

B60 Adult Education

B70 Libraries

B80 Student Services

B82 Scholarships & Student Financial 

Aid

B83 Student Sororities & Fraternities

B84 Alumni Associations

B90 Educational Services

B92 Remedial Reading & 

Encouragement

B94 Parent & Teacher Groups

B99 Education N.E.C.

Environment

Code

C01 Alliances & Advocacy

C02 Management & Technical 

Assistance

C03 Professional Societies & 

Associations

C05 Research Institutes & Public 

Policy Analysis

C11 Single Organization Support

C12 Fundraising & Fund Distribution

C19 Support N.E.C.

C20 Pollution Abatement & Control

C27 Recycling

C30 Natural Resources Conservation 

& Protection

C32 Water Resources, Wetland 

Conservation & Management

C34 Land Resources Conservation

C35 Energy Resources Conservation 

& Development

C36 Forest Conservation

C40 Botanical, Horticultural & 

Landscape Services

C41 Botanical Gardens & Arboreta

C42 Garden Clubs

C50 Environmental Beautification

C60 Environmental Education

C99 Environmental N.E.C.

Animal-Related

Code

D01 Alliance & Advocacy

D02 Management & Technical 

Assistance

D03 Professional Societies & 

Associations

D05 Research Institutes & Public 

Policy Analysis

D11 Single Organization Support

D12 Fundraising & Fund Distribution

D19 Support N.E.C.

D20 Animal Protection & Welfare

D30 Wildlife Preservation & 

Protection

D31 Protection of Endangered 

Species

D32 Bird Sanctuaries

D33 Fisheries Resources

D34 Wildlife Sanctuaries

D40 Veterinary Services

D50 Zoos & Aquariums

D60 Animal Services N.E.C.

D61 Animal Training

D99 Animal Related N.E.C.

Health Care

Code

E01 Alliances & Advocacy

E02 Management & Technical 

Assistance

E03 Professional Societies & 

Associations

E05 Research Institutes & Public 

Policy Analysis

E11 Single Organization Support

E12 Fundraising & Fund Distribution

E19 Support N.E.C.

E20 Hospitals

E21 Community Health Systems

E22 General Hospitals

E24 Specialty Hospitals

E30 Ambulatory & Primary Health 

Care

E31 Group Health Practices

E32 Community Clinics

E40 Reproductive Health Care

E42 Family Planning

E50 Rehabilitative Care

E60 Health Support

E61 Blood Banks

E62 Emergency Medical Services & 

Transport

E65 Organ & Tissue Banks

E6A Pharmacies & Drugstores

E70 Public Health

E80 Health (General & Financing)

E86 Patient & Family Support

E90 Nursing

E91 Nursing Facilities

E92 Home Health Care

E99 Health Care N.E.C.

Mental Health & Crisis 

Intervention

Code

F01 Alliances & Advocacy

F02 Management & Technical 

Assistance

F03 Professional Societies & 

Associations

F05 Research Institutes & Public 

Policy Analysis

F11 Single Organization Support

F12 Fundraising & Fund Distribution

F19 Support N.E.C.

F20 Substance Abuse Dependency, 

Prevention & Treatment

F21 Substance Abuse Prevention

F22 Substance Abuse Treatment

F30 Mental Health Treatment

F31 Psychiatric Hospitals

F32 Community Mental Health 

Centers

F33 Residential Mental Health 

Treatment

F40 Hot Line & Crisis Intervention

F42 Sexual Assault Services

F50 Addictive Disorders N.E.C.

F52 Smoking Addiction

F53 Eating Disorders & Addictions

F54 Gambling Addiction

F60 Counseling

F70 Mental Health Disorders

F80 Mental Health Associations

F99 Mental Health & Crisis 

Intervention N.E.C.

Volutary Health Associations & 

Medical Disciplines

Code

G01 Alliances & Advocacy

G02 Management & Technical 

Assistance

G03 Professional Societies & 

Associations

G05 Research Institute & Public 

Policy Analysis

G11 Single Organization Support

G12 Fundraising & Fund Distribution

G19 Support N.E.C.

G20 Birth Defects & Genetic Diseases

G25 Down Syndrome

G30 Cancer

G32 Breast Cancer

G40 Diseases of Specific Organs

G41 Eye Diseases, Blindness & 

Vision Impairments

G42 Ear & Throat Diseases

G43 Heart & Circulator System 

Diseases & Disorders

G44 Kidney Diseases

G45 Lung Diseases

G48 Brain Disorder

G50 Nerve, Muscle, & Bone Diseases

G51 Arthritis

G54 Epilepsy

G60 Allergy Related Diseases

G61 Asthma

G70 Digestive Diseases & Disorders

G80 Specific Named Disorders

G81 AIDS

G83 Alzheimer’s Diseases

G84 Autism

G90 Medical Disciplines

G92 Biomedicine & Bioengineering

G94 Geriatrics

G96 Neurology & Neuroscience

G98 Pediatrics

G99 Voluntary Health Associations, 

Medical Disciplines N.E.C.

G9B Surgical Specialties

Medical Research

Code

H01 Alliances & Advocacy

H02 Management & Technical 

Assistance

H03 Professional Societies & 

Associations

H05 Research Institute & Public 

Policy Analysis

H11 Single Organization Support

H12 Fundraising & Fund Distribution

H19 Support N.E.C.

H20 Birth Defects & Genetic Diseases 

Research

H25 Down Syndrome Research

H30 Cancer Research

H32 Breast Cancer Research

H40 Diseases of Specific Organs 

Research

H41 Eye Diseases, Blindness & 

Vision Impairments Research

H42 Ear & Throat Diseases Research

H43 Heart & Circulatory System 

Diseases & Disorders Research

H44 Kidney Diseases Research

H45 Lung Diseases Research

H48 Brain Disorders Research

H50 Nerve, Muscle & Bone Diseases 

Research

H51 Arthritis Research

H54 Epilepsy Research

H60 Allergy-Related Diseases 

Research

H61 Asthma Research

H70 Digestive Diseases & Disorders 

Research

H80 Specifically Named Diseases 

Research

H81 AIDS Research

H83 Alzheimer’s Disease Research

H84 Autism Research

H90 Medical Disciplines Research

H92 Biomedicine & Bioengineering 

Research

H94 Geriatrics Research

H96 Neurology & Neuroscience 

Research

H98 Pediatrics Research

H99 Medical Research N.E.C.

H9B Surgical Specialties Research

Crime & Legal-Related

Code

I01 Alliances & Advocacy

I02 Management & Technical 

Assistance

I03 Professional Societies & 

Associations

I05 Research Institutes & Public 

Policy Analysis

I11 Single Organization Support

I12 Fundraising & Fund Distribution

I19 Support N.E.C.

I20 Crime Prevention

I21 Youth Violence Prevention

I23 Drunk Driving-Related

I30 Correctional Facilities

I31 Half-Way Houses for Offenders 

& Ex-Offenders

I40 Rehabilitation Services for 

Offenders

I43 Inmate Support

I44 Prison Alternatives

I50 Administration of Justice

I51 Dispute Resolution & Mediation

I60 Law Enforcement

I70 Protection Against Abuse

I71 Spouse Abuse Prevention

I72 Child Abuse Prevention

I73 Sexual Abuse Prevention

I80 Legal Services

I83 Public Interest Law

I99 Crime & Legal-Related N.E.C.

-37-
Appendix D: National Taxonomy of Exempt Entities (NTEE) Codes (Continued)

Employment

Code

J01 Alliances & Advocacy

J02 Management & Technical 

Assistance

J03 Professional Societies & 

Associations

J05 Single Organization Support

J11 Consumer Lending

J12 Fundraising & Fund Distribution

J19 Support N.E.C.

J20 Employment Preparation & 

Procurement

J21 Vocational Counseling

J22 Job Training

J30 Vocational Rehabilitation

J32 Goodwill Industries

J33 Sheltered Employment

J40 Labor Unions

J99 Employment N.E.C.

Food, Agriculture & Nutrition

Code

K01 Alliances & Advocacy

K02 Management & Technical 

Assistance

K03 Professional Societies & 

Associations

K05 Research Institutes & Public 

Policy Analysis

K11 Single Organization Support

K12 Fundraising & Fund Distribution

K19 Support N.E.C.

K20 Agricultural Programs

K25 Farmland Preservation

K26 Animal Husbandry

K28 Farm Bureaus & Granges

K2A Other Vegetable (except Potato) 

& Melon Farming

K2B Soil Preparation, Planting, & 

Cultivating

K2C Wineries

K30 Food Programs

K31 Food Banks & Pantries

K34 Congregate Meals

K35 Soup Kitchens

K36 Meals on Wheels

K40 Nutrition

K50 Home Economics

K6A Meat Markets

K6B Confectionery & Nut Stores

K6C Caterers

K6D Mobile Food Services

K6E Drinking Places

K6F Snack Nonalcoholic Beverage 

Bars

K90 Limited-Service Restaurants

K91 Supermarkets & Other Grocery 

(except Convenience) Stores

K92 Convenience Stores

K93 Fruit & Vegetable Markets

K94 All Other Specialty Food Stores

K95 Food (Health) Supplement 

Stores

K96 Warehouse Clubs & 

Supercenters

K97 Food Service Contractors

K98 Full-Service Restaurants

K99 Food, Agriculture & Nutrition 

N.E.C.

Housing & Shelter

Code

L01 Alliances & Advocacy

L02 Management & Technical 

Assistance

L03 Professional Societies & 

Associations

L05 Research Institutes & Public 

Policy Analysis

L11 Single Organization Support

L12 Fundraising & Fund Distribution

L19 Support N.E.C.

L20 Housing Development, 

Construction & Management

L21 Low-Income & Subsidized Rental 

Housing

L22 Senior Citizens’ Housing & 

Retirement Communities

L24 Independent Housing for People 

with Disabilities

L25 Housing Rehabilitation

L30 Housing Search Assistance

L40 Temporary Housing

L41 Homeless Shelters

L4A Hotels (except Casino Hotels) & 

Motels

L4B Bed and Breakfast Inns

L50 Homeowners & Tenants 

Associations

L80 Housing Support

L81 Home Improvement & Repairs

L82 Housing Expense Reduction 

Support

L99 Housing & Shelter N.E.C.

Public Safety, Disaster 

Preparedness & Relief

Code

M01 Alliances & Advocacy

M02 Management & Technical 

Assistance

M03 Professional Societies & 

Associations

M05 Research Institutes & Public 

Policy Analysis

M11 Single Organization Support

M12 Fundraising & Fund Distribution

M19 Support N.E.C.

M20 Disaster Preparedness & Relief 

Services

M23 Search & Rescue Squads

M24 Fire Prevention

M40 Safety Education

M41 First Aid

M42 Automotive Safety

M60 Public Safety Benevolent 

Associations

M99 Public Safety, Disaster 

Preparedness & Relief N.E.C.

Recreation & Sports

Code

N01 Alliances & Advocacy

N02 Employment Services

N03 Professional Societies & 

Associations

N05 Research Institutes & Public 

Policy Analysis

N11 Single Organization Support

N12 Fundraising & Fund Distribution

N19 Support N.E.C.

N20 Camps

N2A RV (Recreational Vehicle) Parks 

& Campgrounds

N2B Recreational and Vacation 

Camps (Except Campgrounds)

N30 Physical Fitness & Community 

Recreational Facilities

N31 Community Recreational Centers

N32 Parks & Playgrounds

N40 Sports Training Facilities, 

Agencies

N50 Recreational Clubs

N52 Fairs

N60 Amateur Sports

N61 Fishing & Hunting

N62 Basketball

N63 Baseball & Softball

N64 Soccer

N65 Football

N66 Racquet Sports

N67 Swimming & Other Water 

Recreation

N68 Winter Sports

N69 Equestrian

N6A Golf

N70 Amateur Sports Competitions

N71 Olympics

N72 Special Olympics

N80 Professional Athletic Leagues

N99 Recreation & Sports N.E.C.

Youth Development

Code

O01 Alliances & Advocacy

O02 Management & Technical 

Assistance

O03 Professional Societies & 

Associations

O05 Research Institutes & Public 

Policy Analysis

O11 Single Organization Support

O12 Fundraising & Fund Distribution

O19 Support N.E.C.

O20 Youth Centers & Clubs

O21 Boys Clubs

O22 Girls Clubs

O23 Boys & Girls Clubs

O30 Adult & Child - Matching 

Programs

O31 Big Brothers & Big Sisters

O40 Scouting

O41 Boy Scouts of America

O42 Girl Scouts of the U.S.A.

O43 Camp Fire

O50 Youth Development Programs

O51 Youth Community Service Clubs

O52 Youth Development - Agricultural

O53 Youth Development - Business

O54 Youth Development - Citizenship

O55 Youth Development - Religious 

Leadership

O99 Youth Development N.E.C.

Human Services

Code

P01 Alliances & Advocacy

P02 Management & Technical 

Assistance

P03 Professional Societies & 

Associations

P05 Research Institutes & Public 

Policy Analysis

P11 Single Organization Support

P12 Fundraising & Fund Distribution

P19 Support N.E.C.

P20 Human Service Organizations

P21 American Red Cross

P22 Urban League

P24 Salvation Army

P26 Volunteers of America

P27 Young Men’s or Women 

Associations

P28 Neighborhood Centers

P29 Thrift Shops

P30 Children & Youth Services

P31 Adoption

P32 Foster Care

P33 Child Day Care

P40 Family Services

P42 Single Parent Agencies

P43 Family Violence Shelters, 

Services

P44 In-Home Assistance

P45 Family Services for Adolescent 

Parents

P46 Family Counseling

P47 Pregnancy Centers

P50 Personal Social Services

P51 Financial Counseling

P52 Transportation Assistance

P58 Gift Distribution

P60 Emergency Assistance

P61 Travelers’ Aid

P62 Victims’ Services

P70 Residential Care & Adult Day 

Programs

P71 Adult Day Care

P73 Group Homes

P74 Hospices

P75 Supportive Housing for Older 

Adults

P76 Homes for Children & 

Adolescents

P7A Residential Intellectual & 

Developmental Disability 

Facilities (Group Homes, 

Intermediate Care Facilities & 

Hospitals)

P80 Centers to Support the 

Independence of Specific 

Populations

P81 Senior Centers

P82 Developmentally Disabled 

Centers

P83 Womens’ Centers

P84 Ethnic & Immigrant Centers

P85 Homeless Centers

P86 Blind & Visually Impaired 

Centers

P87 Deaf & Hearing Impaired Centers

P88 LGBT Centers

P99 Human Services N.E.C.

International, Foreign Affairs & 

National Security

Code

Q01 Alliances & Advocacy

Q02 Management & Technical 

Assistance

Q03 Professional Societies & 

Associations

Q05 Research Institutes & Public 

Policy Analysis

Q11 Single Organization Support

Q12 Fundraising & Fund Distribution

Q19 Support N.E.C.

Q20 Promotion of International 

Understanding

Q21 International Cultural Exchange

Q22 International Academic 

Exchange

Q23 International Exchange N.E.C.

Q30 International Development

Q31 International Agricultural 

Development

Q32 International Economic 

Development

Q33 International Relief

Q35 International Democracy & Civil 

Society Development

Q40 International Peace & Security

Q41 Arms Control & Peace

Q42 United Nations Associations

Q43 National Security

Q50 International Affairs, Foreign 

Policy & Globalization

Q51 International Economic & Trade 

Policy

Q70 International Human Rights

Q71 International Migration & 

Refugee Issues

Q99 International, Foreign Affairs & 

National Security N.E.C.

Civil Rights, Social Action & 

Advocacy

code

R01 Alliances & Advocacy 

Organizations

R02 Management & Technical 

Assistance

R03 Professional Societies & 

Associations

R05 Research Institutes & Public 

Policy Analysis

R11 Single Organization Support

R12 Fundraising & Fund Distribution

R19 Support N.E.C.

R20 Civil Rights

R22 Minority Rights

R23 Disabled Persons’ Rights

R24 Womens’ Rights

R25 Seniors’ Rights

R26 Lesbian & Gay Rights

R28 Childrens’ Rights

R30 Intergroup & Race Relations

R40 Voter Education & Registration

R60 Civil Liberties

R61 Reproductive Rights

R62 Right to Life

R63 Censorship, Freedom of Speech 

& Press

R67 Right to Die & Euthanasia

R99 Civil Rights, Social Action & 

Advocacy N.E.C.

Community Improvement & 

Capacity Building

Code

S01 Alliances & Advocacy

S02 Management & Technical 

Assistance

S03 Professional Societies & 

Associations

S05 Research Institutes & Public 

Policy Analysis

S11 Single Organization Support

S12 Fund Raising & Fund Distribution

S19 Support N.E.C.

S20 Community & Neighborhood 

Development

S21 Community Coalitions

S22 Neighborhood & Block 

Associations

-38-
Appendix D: National Taxonomy of Exempt Entities (NTEE) Codes (Continued)

S30 Economic Development

S31 Urban & Community Economic 

Development

S32 Rural Economic Development

S40 Business & Industry

S41 Chambers of Commerce & 

Business Leagues

S43 Small Business Development

S46 Boards of Trade

S47 Real Estate Associations

S50 Nonprofit Management

S80 Community Service Clubs

S81 Womens’ Service Clubs

S82 Mens’ Service Clubs

S99 Community Improvement & 

Capacity Building N.E.C.

Philanthropy, Volunteerism & 

Grantmaking Foundations

Code

T01 Alliances & Advocacy

T02 Management & Technical 

Assistance

T03 Professional Societies & 

Associations

T05 Research Institutes & Public 

Policy Analysis

T11 Single Organization Support

T12 Fundraising & Fund Distribution

T19 Support N.E.C.

T20 Private Grantmaking 

Foundations

T21 Corporate Foundations

T22 Private Independent Foundations

T23 Private Operating Foundations

T30 Public Foundations

T31 Community Foundations

T40 Volunteerism Promotion

T50 Philanthropy, Charity & 

Volunteerism Promotion

T70 Federated Giving Programs

T90 Named Trusts N.E.C.

T99 Philanthropy, Voluntarism & 

Grantmaking Foundations N.E.C.

Science & Technology

Code

U01 Alliances & Advocacy

U02 Management & Technical 

Assistance

U03 Professional Societies & 

Associations

U05 Research Institutes & Public 

Policy Analysis

U11 Single Organization Support

U12 Fundraising & Fund Distribution

U19 Support N.E.C.

U20 General Science

U21 Marine Science & Oceanography

U30 Physical & Earth Sciences

U31 Astronomy

U33 Chemistry & Chemical 

Engineering

U34 Mathematics

U36 Geology

U40 Engineering & Technology

U41 Computer Science

U42 Engineering

U50 Biological & Life Sciences 

Research

U99 Science & Technology N.E.C.

Social Science

Code

V01 Alliances & Advocacy

V02 Management & Technical 

Assistance

V03 Professional Societies & 

Associations

V05 Research Institutes & Public 

Policy Analysis

V11 Single Organization Support

V12 Fund Raising & Fund Distribution

V19 Support N.E.C.

V20 Social Science

V21 Anthropology & Sociology

V22 Economics

V23 Behavioral Science

V24 Political Science

V25 Population Studies

V26 Law & Jurisprudence

V30 Interdisciplinary Research

V31 Black Studies

V32 Women’s Study

V33 Ethnic Studies

V34 Urban Studies

V35 International Studies

V36 Gerontology

V37 Labor Studies

V99 Social Science N.E.C.

Public & Societal Benefit

Code

W01 Alliances & Advocacy

W02 Management & Technical 

Assistance

W03 Professional Societies & 

Associations

W05 Research Institutes & Public 

Policy Analysis

W11 Single Organization Support

W12 Fundraising & Fund Distribution

W19 Support N.E.C.

W20 Government & Public 

Administration

W22 Public Finance, Taxation & 

Monetary Policy

W24 Citizen Participation

W30 Military & Veterans’ 

Organizations

W40 Public Transportation Systems

W50 Telecommunications

W60 Financial Institutions

W61 Credit Unions

W70 Leadership Development

W80 Public Utilities

W90 Consumer Protection

W99 Public & Societal Benefit N.E.C.

Religion-Related

Code

X01 Alliances & Advocacy

X02 Management & Technical 

Assistance

X03 Professional Societies & 

Associations

X05 Research Institutes & Public 

Policy Analysis

X11 Single Organization Support

X12 Fundraising & Fund Distribution

X19 Support N.E.C.

X20 Christianity

X21 Protestant

X22 Roman Catholic

X30 Judaism

X40 Islam

X50 Buddhism

X70 Hinduism

X80 Religious Media & 

Communications

X81 Religious Film & Video

X82 Religious Television

X83 Religious Printing & Publishing

X84 Religious Radio

X90 Interfaith Coalitions

X99 Religion Related, N.E.C.

Mutual & Membership Benefit

Code

Y01 Alliances & Advocacy

Y02 Management & Technical 

Assistance

Y03 Professional Societies & 

Associations

Y05 Research Institutes & Public 

Policy Analysis

Y11 Single Organization Support

Y12 Fundraising & Fund Distribution

Y19 Support N.E.C.

Y20 Insurance Providers

Y22 Local Benevolent Life Insurance 

Associations

Y23 Mutual Insurance Companies & 

Associations

Y24 Supplemental Unemployment 

Compensation

Y25 State-Sponsored Workers’ 

Compensation Reinsurance 

Organizations

Y30 Pension & Retirement Funds

Y33 Teachers’ Retirement Fund 

Associations

Y34 Employee-Funded Pension 

Trusts

Y35 Multi-Employer Pension Plans

Y40 Fraternal Societies

Y41 Fraternal Beneficiary Societies

Y42 Domestic Fraternal Societies

Y43 Voluntary Employees Beneficiary 

Associations (Non-Government)

Y44 Voluntary Employees Beneficiary 

Associations (Government)

Y50 Cemeteries

Y99 Mutual & Membership Benefit 

N.E.C.

-39-
Index

A

Annual filing requirements 4

Annual returns for foreign 

organizations 5

Answers 2

Appendix:

Glossary of terms 29

Sample conflict of interest 

policy 25

States with statutory 

provisions satisfying the 

requirements of section 

508(e) 27

Application for exemption:

Group exemption 3

Language and currency 

requirements 3

Past, present and planned 

activities 3

Purpose 3

User fee 3

Application package 

assembly 3

Articles of incorporation 6

Assistance 4

Authorized representative 6

C

Canadian organizations 5

Church 16

Prescribed course of 

study 17

Compensation:

Definition 10

Corporation:

Articles of incorporation 6

D

Definitions:

Authorized 

representative 6

Charitable 7

Church 16

Compensation 10

Corporation 6

For-profit organization 22

Hospital 18

Medical research 18

Medical research 

organization 18

Distribution of assets at 

dissolution 8

E

EIN (See Employer 

identification number)

Employer identification 

number 6

Expedite requests 3

F

Filing assistance 4

Foreign organizations 5

Annual returns 5

Canadian organizations 5

General 5

United States territories and 

possessions 

organizations 6

Form 2848 4

Form 8821 4

For-profit organization 22

G

Glossary of terms 29

Group exemption 3

H

Homes for the elderly or 

handicapped 22

Hospital 18

How to answer 2

L

Language and currency 

requirements 3

LLC (See Limited liability 

company)

Low-income housing 22

M

Mailing address 6

Medical research 18

Medical research 

organization 18

Month and annual accounting 

period 6

N

NASCO 2

NTEE 37

O

Operated 2

Qualification 2

Organizational structure 6

Organized 2

Qualification 2

Organizing document 2

Dissolution clause 8

Purpose clause 7

Required provisions 7

Unincorporated 

association 7

P

Past, present and planned 

activities 3

Pay.gov 6

Person to contact 6

Political campaign 

intervention 2

Predecessor 22

Private foundations 2

processing the application:

Expedite requests 3

Public charities 2

Public charities and private 

foundations 2

Public inspection 4

Purpose clause:

Charitable 7

Q

Qualification:

Operated 2

Organized 2

Political campaign 

intervention 2

Qualifications 2

R

Representation 4

Form 2848 4

Form 8821 4

S

Sample conflict of interest 

policy 25

Scholarships, fellowships, 

grants, loans 22

School:

Racially nondiscriminatory 

policy 17

School 17

Section 501(c)(3) organization:

Eligibility 1

Private foundations 2

Public charities 2

Public charities and private 

foundations 2

Qualifications 2

Recognition 1

Signature 4

State registration:

NASCO 2

States with section 508(e) 

provisions 27

States with statutory provisions 

satisfying the requirements 

of section 508(e) 27

Successor 22

Supporting organization 20

T

Trust 7

U

Unincorporated association 7

United States territories and 

possessions 6

User fee 3

W

What to file:

Required schedules 3

When to file 4

-40-