What are the chances of having our exemption application approved?
Recent statistics show the IRS approving tax exempt status for a little more than 70% of the applications they receive, and denying tax exempt status for less than 1% of the applications they receive. The other 29% or so are mostly organizations who become discouraged by the numerous questions the IRS asks, and give up before they actually get a ruling. You should be aware that the success rate of nonprofit organizations attempting to apply on their own is far lower than with an attorney. “501c3 applications filed by lawyers are 10 times more likely to be approved than those filed by the organizations themselves,” according to an IRS Agent, at the IRS Processing Center, Covington, KY.
Recent statistics show the IRS approving tax exempt status for a little more than 70% of the applications they receive, and denying tax exempt status for less than 1% of the applications they receive. The other 29% or so are mostly organizations who become discouraged by the numerous questions the IRS asks, and give up before they actually get a ruling.
A Recent statistics show the IRS approving tax exempt status for a little more than 70% of the applications they receive, and denying tax exempt status for less than 1% of the applications they receive. The other 29% or so are mostly organizations who become discouraged by the numerous questions the IRS asks, and give up before they actually get a ruling. Q Does a small organization really need to apply? 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. Q Can we pay salaries to our board members? Can we rent a building owned by a board member, or
