Instructions for Form 1023

Instructions for Form 1023 (Rev. December 2017) Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code Department of the Treasury Internal Revenue Service Section references are to the Internal Revenue Code unless othenvise noted. Contents Page Future Developments 1 What's New 1 Overview of Section 501(c)(3) Organizations 1 General Instructions 3 Answers 3 Purpose of Form 3 Obtaining Tax-Exempt Status 3 What to File 4 When to File 4 Where To File 4 Filing Assistance 4 Signature Requirements 4 Representation 4 Public Inspection 5 Foreign Organizations in General . 6 Specific Instructions 6 Part I. Identification of Applicant 6 Part II. Organizational Structure 7 Part III. Required Provisions in Your Organizing Document 8 Part IV. Narrative Description of Your Activities 8 Part V. Compensation and Other Financial Arrangements With Your Officers, Directors, Trustees, Employees, and Independent Contractors 8 Part VI. Your Members and Other Individuals and Organizations That Receive Benefits From You 10 Part VII. Your History 10 Part VIII. Your Specific Activities . . Part IX. Financial Data 12 Part X. Public Charity Status 15 Part XI. User Fee Information 17 Schedule A. Churches 17 Schedule B. Schools, Colleges, and Universities 18 Schedule C. Hospitals and Medical Research Organizations 19 Schedule D. Section 509(a)(3) Supporting Organizations 21 Schedule E. Organizations Not Filing Form 1023 Within 27 Months of Formation 22 Schedule F. Homes for the Elderly or Handicapped and Low-Income Housing 23 Schedule G. Successors to Other Organizations 24 Schedule H. Organizations Providing Scholarships, Fellowships, Educational Loans, or Other Educational Contents Page Grants to Individuals and Private Foundations Requesting Advance Approval of Individual Grant Procedures 24 Appendix A: Sample Conflict of Interest Policy 26 Appendix B: States with Statutory Provisions Satisfying the Requirements of Internal Revenue Code Section 508(e) 28 Appendix C: Glossary of Terms . 30 Index 36 Note. Keep a copy of the completed Form 1023 for your permanent records. Future Developments For the latest information about developments related to Form 1023 and Its instructions, such as legislation enacted after they were published, go to IRS.gov/Form1023. Phone Help If you have questions and/or need help completing Form 1023, please call 877-829-5500. This toll-free telephone service is available Monday through Friday. What's New New section 170(b)(1)(A)(xl). Form 1023 includes the new public charity status for section 170(b)(1)(A)(lx) agricultural organizations. See Part X. Public Charity Status, new line 5g. User fees are updated annually. Organizations should reference Rev. Proc. 2017-5, 2017-1 I.R.B. 230, at ham& core.publish.no.irsloWirblod1/ wb201701.0clf or later revision for user fees (revised in the first Internal Revenue Bulletin (I.R.S.) issued each year). For additional information on the user fee, see Part XL User Fee Information. How To Get Forms and Publications Internet You can access the IRS website 24 hours a day, 7 days a week at 1RS.aov to do the following. • Download forms, instructions, and publications. • Order IRS products online. • Research your tax questions online. • Search publications on by topic or keyword. • Use the online Internal Revenue Code, Regulations, or other official guidance. • View Internal Revenue Bulletins (IRBs) published in the last few years. • Sign up to receive local and national tax news by email. To subscribe, go to IRS.govichmilies-non-orolits. Tax forms and publications. You can download or print all of the forms and publications you may need at IRS.gov/ FormsPubs. Otherwise you can go to 1RS.gov/OrderForms to place an order and have forms mailed to you. You should receive your order within 10 business days. Overview of Section 501(c) (3) Organizations Who Is Eligible for Section 501(c)(3) Status? Organizations organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition, or for the prevention of cruelty to children or animals are eligible to file Form 1023 to obtain recognition of exemption from federal income tax under section 501(c)(3) of the Internal Revenue Code. Form 1023 not necessary. The following types of organizations may be considered tax exempt under section 501(c)(3) even if they don't file Form 1023. • Churches, including synagogues, temples, and mosques. • Integrated auxiliaries of churches and conventions or associations of churches. • Any organization that has gross receipts in each tax year of normally not more than $5,000. For more Information on gross receipts exceptions, go to 1RS.gov/Charities. Even though the above organizations aren't required to file Form 1023 to be tax exempt, these organizations may choose to file Form 1023 in order to receive a determination letter that recognizes their section 501(c)(3) status and specifies whether contributions to them are tax deductible. Jan 02, 2018 Cat. No. 17132z EFTA00812069 Qualification of a Section 501(c)(3) Organization There are two requirements for an organization to be exempt from federal income tax under section 501(c)(3). A 501(c)(3) organization must be organized and operated exclusively for one or more exempt purposes. Organized. An organization must be organized as a corporation (including a limited liability company), trust, or unincorporated association. The organizing document (articles of incorporation if you are a corporation, articles of organization if you are a limited liability company, articles of association or constitution if you are an association, or trust agreement or declaration of trust if you are a trust) must limit the organization's purpose(s) and permanently dedicate its assets to exempt purposes. Operated. An organization must be operated to further one or more of the exempt purposes stated in its organizing document. Certain other activities are prohibited or restricted, including, but not limited to, the following activities. A 501(c) (3) organization must: • Absolutely refrain from participating in the political campaigns of candidates for local, state, or federal office; • Absolutely ensure that its assets and earnings don't unjustly enrich board members, officers, key management employees, or other insiders; • Not further non-exempt purposes (such as purposes that benefit private interests) more than insubstantially; • Not operate for the primary purpose of conducting a trade or business that isn't related to its exempt purpose(s); • Not engage in activities that are illegal or violate fundamental public policy; and • Restrict its legislative activities. Legislative activity. An organization doesn't qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation. Form 5768. Most public charities are eligible to elect to make expenditures to influence legislation by filing Form 5768, Election/Revocation of Election by an Eligible Section 501(c)(3) Organization To Make Expenditures To Influence Legislation. By filing Form 5768, an eligible organization's legislative activities will be measured solely by an expenditure limit rather than by the "no substantial amount" limit. For additional information on the expenditure limit or the no substantial amount limit, see Pub. 557, Tax-Exempt Status for Your Organization. For this purpose, legislation" includes action by Congress, a state legislature, a local council, or a similar governing body, with respect to acts, bills, resolutions or similar items (such as legislative confirmation of appointive offices). Legislation also includes action by the public in a referendum, ballot initiative, constitutional amendment, or similar procedure. Legislation generally doesn't include actions by executive, judicial, or administrative bodies. Organizations may involve themselves in issues of public policy without being engaged in legislative activity. For example, organizations may conduct educational meetings, prepare and distribute educational materials, or otherwise consider public policy issues. Similarly, an organization may appear before a governmental body to offer testimony about a decision that may affect the organization's existence. A private foundation isn't allowed to influence legislation. Political campaign Intervention. All 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating or intervening in any political campaign on behalf of (or in opposition to) any candidate for elective public office. Non-partisan voter education activities (including public forums and voter education guides) are permitted. Similarly, non-partisan activities to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, aren't prohibited political campaign activity. However, voter education or registration activities that (a) favor one candidate over another, (b) oppose a candidate in some manner, or (c) favor a group of candidates, are prohibited. Public Charities and Private Foundations Every organization that qualifies for tax-exempt status under section 501(c)(3) is further classified as either a public charity or a private foundation. For some organizations, the primary distinction between a public charity and a private foundation is an organization's source of financial support. A public charity has a broad base of support, while a private foundation receives its support from a small number of donors. This classification is important because different tax rules apply to the operations of each entity. Deductibility of contributions to a private foundation is more limited than contributions to a public charity. See Pub. 526, Charitable Contributions, for more Information on the deductibility of contributions. In addition, private foundations are subject to excise taxes that aren't imposed on public charities. Public charities. The following 501(c)(3) organizations are classified as public charities. • Churches. • Schools. • Hospitals, medical research organizations, and cooperative hospital service organizations. • Organizations that receive substantial support from grants, governmental units, and/or contributions from the general public. • Organizations that normally receive more than one-third of their support from contributions, membership fees, and gross receipts from activities related to their exempt functions, and not more than one-third of their support from gross investment income and net unrelated business income. • Organizations that support other public charities. If an organization requests public charity classification based on receiving substantial public support, it must continue to seek significant and diversified public support contributions in later years. Private foundation. A 501(c)(3) organization that can't meet one of the specific exceptions to be classified as a public charity is a private foundation. Classification as a private foundation has nothing to do with the name of the organization. There are many organizations that include the word foundation in their names that aren't private foundations for tax purposes. Private operating foundations. A private foundation that lacks general public support but actively conducts exempt programs (as opposed to making grants to other organizations to conduct exempt activities) may be treated as a private operating foundation. Private operating foundations are subject to more favorable rules than other private foundations in terms of charitable contribution deductions and attracting grants from private foundations. In order to be classified as a private operating foundation, an organization must meet certain support tests. See support test at IRS.gov/ PrivateOperatingFoundationSuPPOrtTestS. Also see new Private Operating Foundations -new organizations at wynvirs.govicharities-non-profitsrivate- foundations/private-operating- fpundations-new-organizations State Registration Requirements Tax exemption under section 501(c)(3) is a matter of federal law. After receiving Instructions for Form 1023 EFTA00812070 federal tax exemption, you may also be required to register with one or more states to solicit for contributions or to obtain exemption from state taxes. The National Association of State Charity Officials (NASCO) maintains a website that provides Informational links to the various states for these purposes. It can be accessed at www.nasconet.org. General Instructions Social Security Number. Don't enter Social Security numbers on this form because the IRS is required to disclose approved exemption applications and information returns. Documents subject to disclosure include supporting documents filed with the form and correspondence with the IRS about filing. "You" and "Us". Throughout these instructions and Form 1023, the terms "you" and "your" refer to the organization that is applying for tax-exempt status. The terms "us" and "we" refer to the Internal Revenue Service. Definitions. Terms in bold type in Form 1023 are defined throughout these instructions and in Appendix C. Answers Answer items completely. Where a "Yes" or "No- reply isn't requested, you may answer "Not Applicable" where appropriate. If you believe you have previously answered the Item, you may refer to your previous answer. 4 Your answers must provide sufficient detail about your past, present, and planned activities to prove that you are an exempt organization. We will not be able to recognize you as tax exempt based on generalizations. Therefore, we need to understand the specific activities you will undertake to reach your charitable goals. Financial data. Form 1023 asks you to answer a series of questions and provide information to assist us in determining if you meet the requirements for tax exemption under section 501(c)(3). One of the pieces of Information requested is financial data. This data, whether budgeted or actual, should be consistent with other Information presented in the application. For example, if you are requesting public charity status under one of the public support tests, the financial data should show contributions from the public or receipts from providing exempt services. Budgeted financial data should be prepared based upon your current plans. We recognize that the organization's actual financial results may vary from the budgeted amounts. Past, present, and planned activities. Many items on Form 1023 are written in the present tense; however, your answers should be based on your past, present, and planned activities. Language and currency requirements. Prepare Form 1023 and attachments in English. Provide an English translation if the articles of organization or bylaws are in any other language. We may ask you to provide English translations of foreign language publications you submit with your Form 1023. Report financial information in U.S. dollars (specify the conversion rate used). Combine amounts from within and outside the United States and report the total for each on the financial statements. Purpose of Form Completed Form 1023 required for section 501(c)(3) exemption. Form 1023 is filed by organizations to apply for recognition of exemption from federal income tax under section 501(c)(3). Upon approval, we will issue a determination letter that provides written assurance about the organization's tax-exempt status, and its qualification to receive tax-deductible charitable contributions. Every organization qualifying for exemption under section 501(c)(3) will also be classified as either a "public charity" or a "private foundation." Other organizations that may file Form 1023. Other organizations that apply for tax-exempt status under section 501(c)(3) by filing Form 1023 Include section 501(e) and (f) cooperative service organizations, section 501(k) childcare organizations, and section 501(n) charitable risk pools. Obtaining Tax-Exempt Status To apply for tax-exempt status, file Form 1023 and pay the appropriate user fee. Application for Reinstatement and Retroactive Reinstatement An organization must apply to have its tax-exempt status reinstated if it was automatically revoked for failure to file a return or notice for three consecutive years. The organization must: 1. Complete and file the appropriate application form, 2. Pay the appropriate user fee and enclose it with the application, 3. Write 'Automatically Revoked" at the top of the application and mailing envelope, and 4. Submit a written statement supporting its request if applying for retroactive reinstatement. If the application is approved, the date of reinstatement generally will be the postmark date of the application, unless the organization qualifies for retroactive reinstatement. Alternate submissions and standards apply for retroactive reinstatement back to the date of automatic revocation. See Rev. Proc. 2014-11.2014-03 IR.& 411 for details. Expedite Requests We will only approve expedited processing of an application where a request is made in writing and contains a compelling reason for processing the application ahead of others. Circumstances generally warranting expedited processing include the following. • A grant to the applicant is pending and the failure to secure the grant may have an adverse impact on the organization's ability to continue operations. • The purpose of the newly created organization is to provide disaster relief to victims of emergencies such as floods and hurricanes. • There have been undue delays in issuing a letter caused by problems within the IRS. User Fee The law requires payment of a user fee with each application. Enclose payment with your application. DON'T STAPLE or otherwise attach your check or money order to your application. You may pay your user fee with a personal or certified check, bank check, or cashier's check. Processing your application will not be delayed by the form of payment unless your check is returned to us for Insufficient funds. Additional guidance regarding user fees is available in Rev. Proc. 2017-5, 2007-1 I.R.B. 230, at WM core.publish.no.irs.govArb/Ddf/ wb201701.pdf or later revision (revised in the first I.R.B. issued each year). For additional information on the user fee, see Part XL User Fee Information. Group Exemption Form 1023 isn't used to apply for a group exemption. A group exemption is issued to a central organization that recognizes on a group basis the exemption of subordinate organizations on whose behalf the central organization has applied. See Pub. 557 for information on how to apply for a group exemption. Leaving a group exemption. If a subordinate organization in an existing group exemption wishes to apply for an Instructions for Form 1023 EFTA00812071 individual exemption, it should notify Its parent organization of its intention to leave the group ruling before filing Form 1023. What to File All applicants, unless otherwise noted, must complete Parts I through XI of Form 1023, plus any required schedules and attachments. The following organizations must complete additional schedules to Form 1023. THEN you IF your organization must file Is a(n) Schedule .. Church A School, College, or University Hospital or Medical Research Organization Section 509(a)(3) Supporting Organization Organization Not Filing Form 1023 Within 27 Months of Formation Home for the Elderly or Handicapped and Low-Income Housing Successor to Other Organizations Organization Providing Scholarships, Fellowships, Educational Loans, or Other Educational Grants to Individuals and Private Foundations Requesting Approval of Individual Grant Procedures . . • Amendments to organizing document in chronological order. • Bylaws or other rules of operation and amendments. • Documentation of nondiscriminatory policy for schools, as required by Schedule B. • Form 5768. • All other attachments, including explanations, financial data, and printed materials or publications. Attachments Use an attachment where there is insufficient space on the form for you to legibly and accurately respond to a question. For any attachments submitted with your Form 1023: • Use 81/2 x 11 Inch paper, • Provide your name and Employer Identification Number (EIN) at the top of each page, and • Identify the Part and number to which the attachment relates. Include any court decisions, rulings, opinions, or any other documents that will assist us in processing your Form 1023. Attachments in the form of tape recordings or other electronic media aren't acceptable unless accompanied by a transcript. Attachments must be In English. When to File Generally, if you file Form 1023 within 27 F months after the end of the month in which you were legally formed, and we approve G the application, the legal date of formation will be the effective date of your exempt status. H Assembly of Application Package To assist us in processing the application, documents should be submitted in the following order. • User fee enclosed but not attached to the application form. • Form 1023 Checklist. • Form 2848, Power of Attorney and Declaration of Representative (if needed). • Form 8821, Tax Information Authorization (if needed). • Expedite request Of needed). • Application Form 1023 and Schedules A through H (as required). • Organizing document. If you don't file Form 1023 within 27 months of formation, the effective date of your exempt status will be the date you filed Form 1023 (submission date). The date considered to be the date we receive Form 1023 Is generally the postmark date. For exceptions and special rules, including automatic extensions, see Schedule E of Form 1023. Where To File Send the completed Form 1023, user fee payment, and all other required information to: Internal Revenue Service Attention: EO Determination Letters Stop 31 P.O. Box 12192 Covington, KY 41012-0192 Private Delivery Service Organizations can use certain private delivery services (PDS) designated by the IRS to meet the "timely mailing as timely filing" rule for tax returns. Go to IRS.gov/ PDS for the list of PDS. The PDS can tell you how to get written proof of the mail date. If you're using PDS, send your application, user fee, and all other required information to: Internal Revenue Service Attention: EO Determination Letters Stop 31 201 West Rivercenter Boulevard Covington, KY 41011 AkPrivate delivery services can't deliver items to P.O. boxes. You must use the U.S. Postal Service to mail any items to an IRS P.O. box address. Filing Assistance For help in completing this form or general questions relating to an exempt organization, you may access Information on our website at IRS.gov/EO. Listed below are a number of publications and a searchable link that may be helpful to your organization. • Pub. 517, Social Security and Other Information for Members of the Clergy and Religious Workers • Pub. 526, Charitable Contributions • Pub. 557, Tax-Exempt Status for Your Organization • Pub. 598, Tax on Unrelated Business Income of Exempt Organizations • Pub. 1771, Charitable Contributions Substantiation and Disclosure Requirements • Pub. 1828, Tax Guide for Churches and Religious Organizations • Pub. 3079, Gaming Publication for Tax-Exempt Organizations • Pub. 3833, Disaster Relief: Providing Assistance through Charitable Organizations • Pub. 4220, Applying for 501(c)(3) Tax-Exempt Status • Pub. 4221, Compliance Guide for 501(c)(3) Tax-Exempt Organizations You can search organizations eligible to receive tax-deductible charitable contributions at /RS.govaPub78. Signature Requirements An officer, director, trustee, or other official who is authorized to sign for the organization must sign Form 1023 at the end of Part XI. The signature must be accompanied by the title or authority of the signer and the date. Please clearly print the accompanying information. Representation Form 2848. Attach a completed Form 2848 if you want to authorize a representative to represent you regarding your application. An individual authorized by Form 2848 may not sign the application Instructions for Form 1023 EFTA00812072 unless that person is also an officer, director, trustee, or other official who is authorized to sign the application. A centralized authorization file (CAF) number isn't required to be listed on Form 2848. Form 8821. Form 8821 authorizes us to discuss your application with the person you have appointed. Form 8821 doesn't authorize your appointee to advocate your position with respect to the Federal tax laws; to execute waivers, consents, or closing agreements; or to otherwise represent you before the IRS. If you want to authorize an individual to represent you, use Form 2848. After You Submit Form 1023 We will acknowledge receiving your application in writing. You may expect to receive this notice within 21 days of the postmark date of the Form 1023. Read the notice thoroughly because it will provide further information about the processing of your Form 1023. Generally, we assign applications in the order we receive them. Unless the application is approved for expedited processing, it will be worked in the order received. No additional Information needed. If our review shows that you qualify, we will send you a letter stating that you are exempt under section 501(c)(3) and whether you are a public charity or a private foundation. Additional information needed. If the review shows that we need additional information or changes, we will call or write you. Examples of the types of questions you may be asked are available at IRS.00v. If the additional information indicates that you qualify, we will send you a letter stating that you are exempt under section 501(c)(3) and whether you are a public charity or a private foundation. If we conclude that you don't qualify for exemption, we will send you a letter that explains our position and your appeal rights. Annual Filing Requirements If an annual information return or tax return is due while the Form 1023 is pending, complete the return, mark "Application Pending" in the heading, and send the return to the address indicated in these instructions. Information on return filing requirements and exceptions may be found in Pubs. 557 and 598 and in the instructions to the annual returns listed in Figure 1. Figure 1.990 Series Forms filed by Exempt Organizations Type of Annual Return Who Should Flle Form 990, Retum of Organization Exempt from Income Tax Section 501(c)(3) public charities Form 990-EZ, Short Form Return of Organization Exempt from Income Tax Section 501(c)(3) public charities whose gross receipts during the year were less than $200,000 and total assets at the end of the year were less than $500,000 Schedule A (Form 990 or 990-EZ), Organization Exempt under Section 501(c)(3) Section 501(c)(3) public charities Schedule B (Form 990, 990-EZ, or 990-PF), Schedule of Contributors All section 501(c)(3) organizations Form 990-PF, Return of Private Foundation Private foundations, including private operating foundations Form 990-7, Exempt Organization Business Income Tax Return Public charities and private foundations that have gross unrelated business income of $1,000 or more Form 990-N Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or Form 990-EZ Tax-exempt organizations that don't file Form 990 or Form 990-EZ can file Form 990-N. Most small tax-exempt organizations with gross receipts of $50,000 or less can file a Form 990-N. You may also be required to file Information not available for public other returns, such as Inspection. The following items will not employment tax returns or benefit be open for public inspection. plan returns, which aren't discussed here. • Any information relating to a trade secret, patent, style of work, or apparatus that, if released, would adversely affect you. (We must approve withholding this information.) • Any other information that would adversely affect national defense. (We must approve withholding this information.) • User fee check. • Information only applications from the United States Virgin Islands, Bureau of Internal Revenue (BIR), and related supporting documents. • Contributors' names and addresses and identifying information about contributors included with Forms 990 or 990-EZ and the Schedule B filed with these forms. • Form 990-T, Exempt Organization Business Income Tax Return. When applying for tax-exempt status, you must clearly identify any information that isn't open for public inspection by separately marking it as "NOT SUBJECT TO PUBLIC INSPECTION" and attaching an explanation of why you are asking for the information to be withheld. We will decide whether to withhold the identified information from public inspection. Public Inspection Information available for public In- spection. If we approve exempt status under section 501(c)(3), the following information will be open for public inspection. • Your complete Form 1023 and any supporting documents. • All correspondence between you and the IRS concerning Form 1023, including Form 2848. • The letter we issue approving your exemption. • Annual information returns (Forms 990, 990-EZ, or 990-PF). • Schedule A, included with Forms 990 or 990-EZ. • Schedule B, included with Forms 990 or 990-EZ, except the names and addresses of contributors and other identifying information about contributors. • Schedule B, included with Form 990-PF, including names, addresses and other identifying information about contributors. Instructions for Form 1023 EFTA00812073 Making documents available for public Inspection. Both you and the IRS must make the information that is subject to disclosure available for public inspection. The public may contact us toll-free at 877-829-5500 to request public inspection or copies of the information. The public may also request inspection of the information or a copy of the information directly from you. An exempt organization may post the documents required to be available for public inspection on its own website. The information return and exemption application materials must be posted exactly as filed with the IRS. Only the information that isn't open for public inspection may be deleted. If an exempt organization posts the documents on its website, it must provide notice of the website address where the documents may be found, but it need not provide copies of the information. However, documents posted on an organization's website must still be made available for public inspection without charge at its main office during regular business hours. Documents aren't considered available for public inspection on a website if the otherwise disclosable information is edited or subject to editing by a third party when posted. To date, the IRS hasn't approved any third party websites for posting. See Pub. 557 for additional guidance on public inspection. Foreign Organizations in General Foreign organizations are those that were created in countries other than the United States, its territories, or its possessions. Foreign organizations may apply for tax-exempt status on income earned in the United States in the same way that domestic organizations apply for exempt status. See Language and currency requirements, above. A foreign organization applying for exempt status should complete all required parts of Form 1023. There are, however, special rules below for some Canadian organizations. Contributions by U.S. residents to foreign organizations generally aren't deductible. Tax treaties between the U.S. and certain foreign countries provide specific limited exceptions. Annual returns for foreign organiza- tions. A foreign organization that obtains exemption as a public charity must file an information retum annually (Form 990 or Form 990-EZ). A foreign organization that is a private foundation must file Form 990-PF annually. However, a foreign organization, other than a private foundation, may be relieved from filing Form 990 or Form 990-EZ in any year in which it has gross receipts from U.S. source income of $50,000 or less and hasn't conducted significant activity in the United States. See the Instructions for Form 990 and Form 990-EZ, and the Instructions for Form 990-PF for further information. A foreign organization that is subject to unrelated business income tax must file Form 990-T. Canadian Organizations Canadian organizations that have received a Notification of Registration from the Canada Customs and Revenue Agency (formerly, Revenue Canada), and whose registrations haven't been revoked ("Canadian registered charities"), are automatically recognized as section 501(c)(3) organizations and aren't required to file Form 1023. Canadian registered charities are also presumed to be private foundations. A Canadian registered charity may complete certain portions of the Form 1023 in order to be listed as a section 501(c)(3) organization on the IRS website at 1RS.00v/Pub78 or to request classification as a public charity, rather than a private foundation. A Canadian registered charity should only complete and submit the following documents. • Copy of its Notification of Registration. • Part I of Form 1023. • Part X of Form 1023 (if requesting public charity classification). • Signature in Part XI of Form 1023. • Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b). Organizations Created in United States Territories and Possessions Organizations created in possessions and territories of the United States are generally treated as domestic organizations. These organizations complete all required pans of Form 1023 to apply for exempt status under section 501(c)(3). Special rules, discussed below, apply to some Virgin Islands organizations. Charitable contributions to organizations created in United States possessions and territories are deductible by the donors if the organization qualifies for exempt status under section 501(c)(3). Virgin Islands Organizations The United States Virgin Islands, Bureau of Internal Revenue (BIR) may request an information only letter concerning the exempt status under section 501(c)(3) of an organization formed in the Virgin Islands. The organization itself doesn't seek U.S. recognition of exempt status. The information only procedure requires the BIR to complete Form 1023 and supporting documents for the organization, but doesn't require a user fee payment. The application and supporting documents aren't open for public inspection (see Public Inspection, above for more information). All other Virgin Islands organizations that seek U.S. recognition of exempt status under section 501(c)(3) must follow the normal application process. Specific Instructions Part I. Identification of Applicant Line 1. Full name of organization. Enter your complete name exactly as it appears in your organizing document, including amendments. Line 2. do Name. If you have an "in care of name, enter it here. Line 3. Mailing address. Enter your complete address where all correspondence will be sent. If mail isn't delivered to the street address and you have a P.O. Box, show the box number instead of the street address. For a foreign address, enter the information in the following order: city, province or state, and country. Follow the country's practice in placing the postal code in the address. Don't abbreviate the country name. Line 4. Employer Identification Num- ber (EIN). All organizations must have an EIN. Enter the nine-digit EIN the IRS assigned to the organization. If the organization doesn't have an EIN, it must apply for one. An EIN can be applied for by visiting the IRS website at 1RS.gov/EIN. The organization may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. The Form SS-4 and its separate instructions can be downloaded from IRS.gov. Organizations outside the United States or U.S. possessions may also apply for an EIN by calling 267-941-1099 (toll call). Don't apply for an EIN more than once. If the organization has more than one EIN and hasn't been advised which to use, notify the: Department of the Treasury Internal Revenue Service Center Ogden, UT 84201.0027 State what EINs the organization has, the name and address to which each number was assigned, and the address of the organization's principal office. The IRS will advise the organization which number to use. Instructions for Form 1023 EFTA00812074 Line 5. Month the annual accounting period ends (01-12). Enter the month that your annual accounting period ends, using a two-digit number format. For example, if your annual accounting period ends in December, enter "12." Your annual accounting period is the 12-month period on which your annual financial records are based. Your first tax year could be less than 12 months. Check your bylaws or other rules of operation for consistency with the annual accounting period entered in line 5. Line 6a. Primary contact. Your primary contact person may be an officer, director, trustee, or other individual who is permitted to speak with us according to your bylaws or other rules of operation. Your primary contact person may also be an "authorized representative," such as an attorney or certified public accountant for whom you have submitted a completed Form 2848 with the Form 1023. Line 7. If you wish to be represented by an authorized representative, a completed Form 2848 must be attached to the Form 1023. Line 8. Provide information about persons, other than your officers, directors, trustees, employees, or authorized representative(s), whom you paid, or promised to pay, to assist you in establishing your organization, developing programs to solicit funds, or otherwise advising you about organizational, financial, or tax matters. For example, provide information about a paid consultant who advised you about obtaining tax exemption. Line 9a. Organization's website. Enter your complete website address if you have one. Also, list any websites maintained on your behalf. The information on your website should be consistent with the information in your Form 1023. Line 9b. Email (optional). Enter your email address to receive educational information from us in the future. Because of security concerns, we can't send or respond to confidential information via email. Line 10. Certain organizations aren't required to file an information return (Form 990 or Form 990-EZ) or notice (Form 990-N). Generally, organizations not required to file Form 990, or Form 990-EZ, or Form 990-N include churches, certain church affiliated organizations, and certain affiliates of a governmental unit. Note that organizations that are exempt from filing Form 990 or Form 990-EZ because of gross receipts are generally required to submit Form 990-N if they choose not to file Form 990 or Form 990-EZ. For more information, see the Instructions for Form 990 and Form 990-EZ. See IRS.gov for more information. Private foundations must file Form 990-PF regardless of the amount of their gross receipts. Line 11. List the date you were legally created by month, day, and year (for example, 02/01/2018). The date should be consistent with your organizing document described in Part II. Line 12. For purposes of completing this application, you are formed under the laws of a foreign country if you aren't formed under the laws of the United States, its territories and possessions; federally recognized Indian tribal or Alaska Native governments; or the District of Columbia. Part II. Organizational Structure Only trusts, unincorporated associations, or corporations (including limited liability companies) are eligible for tax-exempt status under section 501(c)(3). Sole proprietorships, partnerships, or loosely affiliated groups of individuals aren't eligible. To qualify for tax-exempt status, you must check "Yes" on either line 1,2,3, or 4 and submit a copy of your organizing document. Line 1. A "corporation" is an entity organized under a Federal or state statute, or a statute of a federally recognized Indian tribal or Alaskan native government. A corporation's organizing document is its "articles of incorporation." Certification of filing. If formed under state statute, your articles of incorporation must show certification of filing. This means your articles show evidence that on a specific date they were filed with and approved by an appropriate state authority. The document must be an exact copy of what is on file with your state. Substitute Articles of Incorporation. If you don't have a copy of your articles of incorporation showing evidence of having been filed and approved by an appropriate state official, you may submit a substitute copy of your articles of incorporation. This substitute copy may be handwritten, typed, printed, or otherwise reproduced. It must be accompanied by a declaration, signed by an officer authorized to sign for you, that it is a complete and correct copy of the articles of incorporation and that it contains all the powers, principles, purposes, functions, and other provisions by which you currently govern yourself. Line 2. A "limited liability company" (LLC) that files its own exemption application is treated as a corporation rather than a partnership. Instead of articles of incorporation, an LLC's organizing document is its state-approved "articles of organization." If it has adopted an "operating agreement," then this document is also part of its organizing document. An LLC shouldn't file an exemption application if it wants to be treated as a disregarded entity by its tax-exempt member. Line 3. An "unincorporated association" formed under state law must have at least two members who have signed a written document for a specifically defined purpose. The articles of organization of an unincorporated association must include the name of your organization, your purpose, the date the document was adopted, and the signatures of at least two individuals. If your copy doesn't contain the proper signatures and date of adoption, you may submit a written declaration that states your copy is a complete and accurate copy of the signed and dated original. Your declaration should clearly indicate the original date of adoption. Bylaws may be considered an organizing document only if they are property structured (includes name, purpose, signatures, and intent to form an organization). Line 4a. A trust may be formed by a trust agreement or declaration of trust. A trust may also be formed through a will. If your trust agreement copy doesn't contain the proper signatures, you may submit a written declaration that states your copy is a complete and accurate copy of the signed and dated original. Your declaration should clearly indicate the original date that it was signed. Trust created by a will. For trusts created by a will, include a copy of the death certificate or a statement indicating the date of death, and a copy of the relevant portions of the will. Trust agreement and non-charitable interests. If your trust agreement provided for distributions for non-charitable interests, indicate the date on which these interests expired. If your trust agreement continues to provide for these interests, you will not qualify for tax-exempt status. Line 4b. Generally, a trust must be funded with property, such as money, real estate, or personal property to be legally created. Line 5. "Bylaws" are generally the internal rules and regulations of an organization. If you have bylaws, you should submit a current copy. Instructions for Form 1023 EFTA00812075 Bylaws don't need to be signed unless they are the organizing document as described in line 3 above. Part III. Required Provisions in Your Organizing Document Line 1. Purpose clause. Your organizing document must limit your purposes to those described in section 501(c)(3). Those purposes are: charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The generally accepted legal definition of "charitable" includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency. Therefore, the phrase "relief of the poor in your organizing document properly limits your purposes. If your purposes are limited in some way by referring to section 501(c)(3), your organizing document also properly limits your purposes. For example, the phrase "relief of the elderly within the meaning of section 501(c)(3)" in your organizing document also properly limits your purposes. However, if the purposes listed in your organizing document are broader than those listed In section 501(c)(3), you should amend your organizing document before applying. A reference to section 501(c)(3) will not ensure that your purposes are limited to those described in section 501(c)(3). All of the language in your organizing document must be considered. The following Is an example of an acceptable purpose clause: The organization is organized exclusively for charitable, religious, educational, and scientific purposes under section 501(O(3) of the Internal Revenue Code, or corresponding section of any future federal tax code. See Pub. 557 for further information and examples of how to limit your purposes. Any amendment to your articles of organization you submit should show evidence that it was signed, dated, and certified as described in Part II. Line 2a. Dissolution clause. Your organizing document must permanently dedicate your assets for a section 501(c) (3) purpose. This means that If you dissolve your organization In the future, your assets must be distributed for an exempt purpose described in section 501(c)(3), or to the federal government, or to a state or local government for a public purpose. If your organizing document states that your assets would be distributed to members or private Individuals or for any purpose other than those provided in section 501(c)(3), you must amend your organizing document to remove such statements. If multiple amendments are required, they may be done at the same time. For example, if you are a corporation and are required to amend both your purpose and dissolution clauses, you may file a single amending document with your appropriate government authority. The following is an example of an acceptable dissolution clause: Upon the dissolution of this organization, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or local govemment, fora public purpose. Naming a specific organization to receive your assets upon dissolution will only be acceptable if your articles state that the specific organization must be exempt under section 501(c)(3) at the time your dissolution takes place and your articles provide for an acceptable alternative if the specific organization isn't exempt. See Pub. 557 for further information and examples of acceptable language for dedication of assets in your organizing document. Line 2c. Operation of state law. A 501(c)(3) organization must permanently dedicate its assets to an exempt purpose described in section 501(c)(3), or to the federal government or to a state or local government for a public purpose. In certain states, reliance may be placed upon state law to establish the permanent dedication of assets for exempt purposes. This is based on Rev. Proc. 82-2, 1982-1 C.B. 367. For additional information, search 'Operation of state law" at IRS.gov. Foreign organizations. Foreign organizations may be able to rely upon the applicable laws of their jurisdiction in a similar manner. You must provide a copy of the applicable law with an English translation. Part IV. Narrative Description of Your Activities Describe completely and in detail your past, present, and planned activities. Don't refer to or repeat the purposes in your organizing document. You may refer to other parts of