Does a small organization really need to apply?
Tax law does not require a 501(c)(3) application when an organization normally has gross receipts less than $5,000 per year. A small organization may want to apply anyway to save donors possible inconvenience in an audit, to be able to apply for grants, or to obtain a bulk mailing permit. An organization which no longer qualifies for this low gross receipts exception must submit its application to the IRS within 90 days of the end of the year in which average gross receipts exceed $5,000.
A Tax law does not require a 501(c) (3) application when an organization normally has gross receipts less than $5,000 per year. A small organization may want to apply anyway to save donors possible inconvenience in an audit, to be able to apply for grants, or to obtain a bulk mailing permit. An organization which no longer qualifies for this low gross receipts exception must submit its application to the IRS within 90 days of the end of the year in which average gross receipts exceed $5,000.
