Fees for Applying for 501c3 Tax Exempt Status are Set Increase!

User fees will increase for all applications for exemption (Forms 1023, 1024, and 1028) postmarked January 3, 2010:

• $400 for organizations whose gross receipts are $10,000 or less annually over a 4-year period
• $850 for organizations whose gross receipts exceed $10,000 annually over a 4-year period
• $3,000 for group exemption letters

Last time the IRS increased their fees they received a deluge of applications and had a huge backlog for months. Don’t wait until the last minute to receive your exempt status, get your 501c3 application (Form 1023) in before the holidays to save money and expedite the process. 

Remember, you will face additional hurdles if you apply more than 27 months after the end of the month in which your organization was legally formed.

Benefits of 501c3 Tax Exempt Status

The primary benefits of tax exempt status include:

• Donors can make charitable contributions and receive a tax deduction. Most often donors will refuse to offer funding if they will not receive a tax deduction.
• The organization will be qualified to receive private and public grant money.
• As a tax exempt organization you can save money on lower postage rates on corporate mailings.