Form 1023, explained part by part

Form 1023, the Application for Recognition of Exemption Under Section 501(c)(3), is how most new charities ask the IRS to confirm their tax-exempt status. If the IRS approves it, you receive a determination letter, the official letter stating that you are exempt, which donors may deduct gifts to you, your foundation classification (public charity or private foundation), and your annual filing requirement.

Since January 31, 2020, the IRS has required Form 1023 to be submitted electronically on Pay.gov. There is no paper version. This guide follows the form in order, using the current Instructions for Form 1023 (Rev. December 2024).

Who must file Form 1023

Unless an exception applies, any organization that wants recognition under 501(c)(3) must file Form 1023 or, if eligible, the shorter Form 1023-EZ. Organizations not required to apply are churches and their integrated auxiliaries, conventions or associations of churches, and organizations with gross receipts normally not more than $5,000. They may still file to obtain a determination letter.

Many small organizations can use Form 1023-EZ instead, but a long list of organization types cannot, and anyone may choose the full form. The calculator below asks a few questions and points you to the right application.

For the eligibility rules themselves, see 501(c)(3) requirements, and for a side-by-side view, see Form 1023 vs. 1023-EZ.

Before you start

You need three things in hand:

• An EIN. Your organization must have its own Employer Identification Number; never use another organization's. See getting an EIN for a nonprofit.
• Your organizing document, such as articles of incorporation showing the state's certification of filing, plus any amendments.
• Bylaws, if adopted. They are not legally required for the application, but most applicants upload them. Our nonprofit bylaws guide explains what to include.

The ten parts of Form 1023

Part I. Identification of Applicant

Your legal name exactly as in your organizing document, mailing address, EIN, the month your tax year ends, a contact person, and your website. Line 9 lists your officers, directors, and trustees. The person who will sign the form must appear in the first five entries.

Part II. Organizational Structure

You select corporation, LLC, unincorporated association, or trust, and enter your formation date and state of formation. For a corporation, the formation date is the date the state filed and approved your articles. This date matters for the 27-month rule.

Part III. Required Provisions in Your Organizing Document

You confirm that your organizing document contains the two clauses every 501(c)(3) needs: a purpose clause limiting you to 501(c)(3) purposes and a dissolution clause dedicating your assets to exempt purposes. In certain states, state law can supply the dissolution rule. Fix any problem by amending your articles before you file.

Part IV. Your Activities

This is the heart of the application. Line 1 asks you to describe your past, present, and planned activities completely and in detail. The instructions ask you to answer, for each activity:

• What is the activity?
• Who conducts it?
• Where is it conducted?
• What percentage of your total time goes to it (all activities adding up to 100%)?
• How is it funded, and what share of your expenses does it use?
• How does it further your exempt purposes?

The IRS states that it cannot recognize you based on a mission statement alone. Do not repeat the purpose clause or describe speculative programs. Later lines ask about your NTEE code (a three-character code describing your field), who your programs serve, any relationships between recipients and insiders, political campaign activity, lobbying, intellectual property, foreign activities, donor advised funds, fundraising, and specialized activities such as schools or credit counseling.

Part V. Compensation and Other Financial Arrangements

You report pay for officers, directors, and trustees, and for any employees or independent contractors paid over $100,000 (including pay from related organizations). "Compensation" includes salary, deferred pay, retirement benefits, fringe benefits, and bonuses. You also answer questions about how compensation is set, whether you have a conflict of interest policy (the instructions include a sample in Appendix A), and transactions such as leases, contracts, and loans with insiders.

Part VI. Financial Data

You provide a statement of revenue and expenses and a balance sheet. How many years depends on your age:

Projections should be a reasonable, good faith estimate based on current plans. The IRS acknowledges that actual results may differ. The balance sheet covers your most recently completed tax year, or the most current information if you have not completed one.

Part VII. Foundation Classification

You choose one classification. Every 501(c)(3) is a private foundation, typically funded by a few sources, unless it qualifies as a public charity, such as a church, school, hospital, or an organization with broad public support. The financial data in Part VI should support your choice. See public charity vs. private foundation.

Part VIII. Effective Date

You confirm whether you are filing within 27 months after the end of the month in which you were formed. If not, you complete Schedule E.

Part IX. Annual Filing Requirements

You indicate whether you claim an exception from filing an annual Form 990-series return or notice, and why. Most organizations must file every year.

Part X. Signature

An officer, director, trustee, or other authorized official signs electronically, with title and date, under penalties of perjury. A representative authorized only on Form 2848 cannot sign unless also an officer or director. The Upload Checklist at the end of Part X records which documents you included.

Schedules A through H

Some organizations complete additional schedules: A (churches), B (schools, colleges, and universities), C (hospitals and medical research organizations), D (509(a)(3) supporting organizations), E (filing more than 27 months after formation, or reinstatement after automatic revocation), F (low-income housing), G (successors to other organizations, including for-profit conversions), and H (scholarships and other educational grants to individuals).

Attachments: one PDF, in order

Pay.gov accepts only one uploaded file. Combine your attachments into a single PDF in this order:

1. Organizing document (required).
2. Amendments to the organizing document, in chronological order (required if any).
3. Bylaws and amendments (if adopted).
4. Form 2848 (if you appoint a representative).
5. Form 8821 (if you authorize someone to receive information).
6. Supplemental responses that did not fit in the form's text fields, and other supporting information.
7. Expedite request (optional).

Put your organization's name and EIN on each page of supplemental responses, and label the part and line each answer relates to. Do not include Social Security numbers anywhere: an approved application and its attachments are open to public inspection.

The user fee

The IRS user fee page, last reviewed October 9, 2026, lists the Form 1023 fee as $600, paid through Pay.gov when you file by bank account or card. You cannot submit without paying. Publication 557 notes that the fee generally is not refunded if you withdraw the application. Our guide to processing time and the user fee covers current timelines.

Common reasons the IRS writes back

If the IRS cannot decide from your application, a specialist will contact you by letter or phone. The IRS publishes sample questions by topic, and the topics are a good checklist of weak spots: activities that look like they belong under a different subsection, lobbying or campaign activity, compensation and related-party transactions, financial information and user fees, foundation classification, international activities, LLC structure, organizational and administrative requirements, gaming, and credit counseling.

In practice, most questions trace back to a narrative that states goals without describing activities, financial projections that do not match the programs described, or insider transactions without a documented, fair process. Our guide to IRS questions on your application explains how to respond.

501Nonprofit.com is a private company, not the IRS. This page is general information, not legal or tax advice for your organization. Example organizations and figures are hypothetical.