Form 1023 Application for 501(c)(3) Tax Exempt Status: Anticipating Compliance Challenges
Tying Financial Information to Proposed Activities, Required Disclosures, Streamlined Application
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers and nonprofit personnel with a practical guide to the challenges of completing Form 1023, Application for Recognition of Exemption Under Section 501(c)(3). The panel will identify the most vexing compliance challenges, outline both financial and narrative requirements, and discuss the risks of using the streamlined process for applying for exempt status.
Outline
- Drill-down on Form 1023 and its 11 parts
- E.g, Part IV (narrative description of your activities)
- Part V (compensation)
- Part VI (members and other individuals and organizations receiving benefits)
- Part VII (specific activities)
- Part IX (financial data)
- Issues to anticipate with the eight schedules that depend on type of applicant
- Compliance issues confronting preparers, and possible alternatives
- IRS efforts to correct and improved the streamlined application process
Benefits
The panel will review these and other problematic aspects of Form 1023:
- How (and in how much detail) should the specific organizational activities be reported, particularly to fit within tax-exempt parameters and especially if fee or other earned revenues are involved?
- What financial data is requested on Form 1023, and how can it help or hurt the application?
- What attention should be given to corporate governance and related best practices, for Form 1023 purposes and future effectiveness?
- What should be supplied in answering questions about relationships with other parties and close connections with other organizations?
- How should intellectual property owned by insiders and fundraising strategies be disclosed?
- What meets the standards for disclosing compensation, non-fixed benefits, member benefits and other data, in light of “public benefit” requirement?
- What are other key compliance areas for anticipating IRS scrutiny?
Faculty
Shirley McLaughlin
Atty
Adler & Colvin
Ms. McLaughlin specializes in formation and tax-exempt status, public charities, private foundations, grantmaking and... | Read More
Ms. McLaughlin specializes in formation and tax-exempt status, public charities, private foundations, grantmaking and social investing, social enterprise, nonprofit structures, relationships and affiliations, and international charitable transactions and operations. Prior to joining the firm, she was a Director of Grants Administration for two of the largest community foundations in the country.
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Sally R. Wagenmaker
Attorney
Wagenmaker & Oberly
Ms. Wagenmaker provides legal counsel in corporate, tax, employment, and real estate matters for nonprofits operating... | Read More
Ms. Wagenmaker provides legal counsel in corporate, tax, employment, and real estate matters for nonprofits operating on local, national, and international levels. Her clients include churches and other religious organizations, social service providers, and schools. Her corporate and tax work includes development of new tax-exempt entities, providing guidance for effective nonprofit governance and other operational legal issues. In addition, she represents clients in property tax exemption matters for charitable, religious, and educational purposes, shared occupancy arrangements, and property transfers.
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