How to use this tool
Answer the questions above in order. The tool first asks what kind of organization you are building: a 501(c)(3) charity, a church, a 501(c)(4) social welfare organization, or another 501(c) type such as a trade association or social club. For charities, it then runs the screen from the Form 1023-EZ eligibility checker.
Have three facts ready: gross receipts by year (everything you take in from all sources, before expenses), total assets at fair market value, and your formation date. The result names one path: Form 1023-EZ, Form 1023, Form 1024, Form 8976 (with optional Form 1024-A), or no application required.
The rules behind the result
Charities: Form 1023 or Form 1023-EZ
A new 501(c)(3) organization is not treated as tax-exempt until it notifies the IRS by filing Form 1023 or, if eligible, Form 1023-EZ (IRC 508(a); Treas. Reg. 1.508-1(a)(2)). The approved application produces a determination letter, the IRS letter recognizing your exempt status. Form 1023-EZ is the streamlined online version for small organizations that answer "No" to every worksheet question. Everyone else files the full Form 1023. The comparison guide covers the trade-offs.
User fees (Rev. Proc. 2026-5). Form 1023-EZ costs $275. Form 1023, Form 1024 and Form 1024-A each cost $600. Fees are paid through Pay.gov when you file.
Who is not required to apply
IRC 508(c)(1) exempts two groups from the notice requirement:
- "churches, their integrated auxiliaries, and conventions or associations of churches," and
- "any organization which is not a private foundation ... and the gross receipts of which in each taxable year are normally not more than $5,000."
How "normally" is measured. Treas. Reg. 1.508-1(a)(3)(ii) turns the $5,000 figure into three tests:
| Organization's age | Gross receipts must be |
|---|---|
| First tax year | $7,500 or less |
| First two tax years combined | $12,000 or less |
| Three or more years | $15,000 or less for the current year plus the two preceding years |
Once you exceed a limit, you have 90 days after the end of that period to file. A private foundation, meaning a charity funded mainly by one family or company rather than the public, cannot use the $5,000 exception at all.
Filing anyway. Publication 557 explains that organizations that skip the application do not appear in the IRS Tax Exempt Organization Search and cannot get a written affirmation of exempt status. Churches weighing this choice can start with churches and 501(c)(3).
Social welfare organizations: Form 8976
IRC 506 requires a new 501(c)(4) organization to notify the IRS within 60 days after it is established. You do this online with Form 8976 and a $50 fee. The IRS charges a penalty of $20 per day, up to $5,000, for late notice. Form 1024-A, the application for a determination letter, is optional, and filing it does not replace Form 8976.
Other 501(c) organizations: Form 1024
Labor and agricultural groups (501(c)(5)), business leagues (501(c)(6)), social clubs (501(c)(7)), fraternal societies and the other types listed in Publication 557 apply on Form 1024. The Code requires advance notice only from 501(c)(9) and 501(c)(17) organizations (IRC 505(c)); the others apply to get a determination letter. See other 501(c) organizations.
Worked example
A hypothetical youth soccer league incorporates as a nonprofit in March 2026 and uses a calendar tax year. It takes in $6,800 in its short first year and expects $9,000 in 2027.
- First year: $6,800 is within the $7,500 limit, so no application is due yet.
- First two years: $6,800 + $9,000 = $15,800, which exceeds $12,000.
- The league must file within 90 days after December 31, 2027, which is March 30, 2028.
Because its receipts and assets are small and it answers "No" to the other worksheet questions, it can use Form 1023-EZ.
What this tool does not cover
The tool does not decide whether your purposes qualify under 501(c)(3), and it does not handle group exemptions for chapters under a parent organization, political organizations, or reinstatement after automatic revocation. State income, sales and property tax exemptions are separate filings; see state tax exemption.
Frequently asked questions
Can a church file Form 1023-EZ?
No. Question 12 of the eligibility worksheet screens out churches and conventions or associations of churches. A church that wants a determination letter files Form 1023.
Does Form 1024-A replace Form 8976 for a 501(c)(4)?
No. Form 8976 is the required notice. Form 1024-A is an optional request for a determination letter, and the IRS says submitting it does not satisfy the notice requirement.
What if we were formed more than 27 months ago?
You still file, but your exemption may start on the date you file rather than the date you formed. Use the 27-month deadline calculator to check your dates.
Sources
- IRS: Instructions for Form 1023 (Rev. December 2024). irs.gov
- IRS: Instructions for Form 1023-EZ (Rev. January 2025). irs.gov
- IRS: Publication 557, Tax-Exempt Status for Your Organization (Rev. January 2025). irs.gov
- Cornell LII: 26 U.S. Code § 508. law.cornell.edu
- eCFR: 26 CFR 1.508-1, Notices. ecfr.gov
- IRS: Electronically submit your Form 8976. irs.gov
- IRS: Internal Revenue Bulletin 2026-1 (Rev. Proc. 2026-5, Appendix A user fees). irs.gov
IRS forms, fees and inflation-adjusted amounts change. We review this page when the IRS publishes new instructions.
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.
