IRS Form 1023 Preparation Guide and Checklist

1. Organizational Eligibility

• ☐ Confirm entity is organized as corporation, trust, or association under state law.
• ☐ Review articles of incorporation/trust instrument for required 501(c)(3) language (purpose clause, dissolution clause).
• ☐ Amend governing documents if necessary before filing.

2. Gather Required Documents

• ☐ Certified copy of organizing documents and amendments.
• ☐ Bylaws and board resolutions adopting bylaws.
• ☐ Employer Identification Number (EIN) confirmation letter.
• ☐ Financial statements: current year balance sheet and income statement; schedules for past 3-4 years (actual or projected).
• ☐ Narrative description of activities with detailed budgets.
• ☐ Conflict of interest policy and board approval documentation.
• ☐ List of officers, directors, key employees (names, addresses, compensation).
• ☐ Copies of fundraising materials, grant agreements, contracts (if available).

3. Complete Form 1023 Sections

1. Part I – Identification of Applicant
   - Confirm NTEE code, website, contact information.
2. Part II – Organizational Structure
   - Attach required organizing documents with specific language highlighted.
3. Part III – Required Provisions in Organizing Document
   - Verify dissolution clause and purpose clause.
4. Part IV – Narrative of Activities
   - Provide detailed description of past, present, and planned activities; include hours, locations, beneficiaries.
5. Part V – Compensation and Financial Arrangements
   - Disclose compensation, family/business relationships, agreements.
6. Part VI – Members and Other Individuals
   - Report membership structure, affiliated organizations.
7. Part VII – Your History
   - Prior applications, successor organizations, political activities.
8. Part VIII – Specific Activities
   - Answer questions on fundraising, grants, foreign activities, gaming, scholarships.
9. Part IX – Financial Data
   - Provide 3 years actual or projected revenues/expenses with supporting schedules.
10. Part X – Public Charity Status
    - Choose appropriate classification (509(a)(1)/(2)/(3)) and compute support calculations.
11. Part XI – User Fee Information
    - Confirm correct user fee amount and payment method.

4. Schedules and Attachments

• ☐ Schedule A – Churches, schools, hospitals (if applicable).
• ☐ Schedule B – Schools, colleges, universities.
• ☐ Schedule C – Hospitals and medical research.
• ☐ Schedule D – Supporting organizations.
• ☐ Schedule E – Organizations providing scholarships, loans, grants.
• ☐ Schedule F – Homes for the elderly or handicapped.
• ☐ Schedule G – "Successor" organizations.
• ☐ Schedule H – Organizations providing low-income housing.
• ☐ Schedule I – Organizations providing scholarships, fellowships, educational loans, or other grants.

5. Financial Projections

• ☐ Prepare detailed budgets allocating income and expenses by program, management, fundraising.
• ☐ Document sources of revenue (grants, donations, fees).

6. Governance Policies

• ☐ Conflict of interest policy.
• ☐ Whistleblower policy (recommended).
• ☐ Document retention policy (recommended).
• ☐ Compensation approval process.

7. Review and Signature

• ☐ Verify completeness, consistent answers, and cross-references.
• ☐ Ensure all attachments labeled and referenced.
• ☐ Obtain signatures from officer/director and authorized representative.
• ☐ Review for private benefit/inurement issues.

8. Filing and Follow-Up

• ☐ Pay user fee via pay.gov and submit form electronically.
• ☐ Retain copies of submission and confirmations.
• ☐ Prepare for IRS follow-up questions; respond timely.

Keep organized records to facilitate annual Form 990 filings and ongoing compliance.