Exactly what to do
- Everything the form asks for already exists from earlier steps; pull it together before you open Pay.gov. From your vault: the stamped articles, EIN letter, adopted bylaws, signed conflict-of-interest policy, and the meeting minutes. From your account: your officers and board roster. The one new thing to prepare: a simple 3-year revenue-and-spending projection (the full 1023 asks for it, and it also answers the worksheet's $50,000 question in the next step).
- The worksheet at the end of the 1023-EZ instructions disqualifies you if gross receipts exceeded $50,000 in any of the past 3 years, are projected to exceed $50,000 in any of the next 3, or assets exceed $250,000. An SGO expecting real §25F donation volume in 2027 will likely blow through $50,000; if so, file the full 1023 now rather than the EZ you'll outgrow immediately.
- With the step-1 packet beside you, both forms file electronically at Pay.gov (search “1023”); pay the fee at submission ($275 EZ / $600 full). On the full form, write Part IV's narrative like the SGO you'll be: who's eligible, how families apply, how awards are decided, that scholarships fund K-12 expenses; your IRS file and your future state vetting should tell the same story. When the determination letter arrives (EZ: commonly a few weeks; full: often months, and you can operate and fundraise while pending), upload it below, it's the document every donor, bank, and state list asks for.
IRS determination letter
Upload it when it arrives; every later stage references it.
← Back to the checklist0 of 3 checkedNext: 7. Set up operations: bank accounts, tax exemptions, domain →
What trips people up
- Filing the EZ to save $325 and then needing full-1023-grade answers during state SGO vetting anyway. The cheap filing is not always the cheap path.
- Missing the 27-month window. File late and exemption generally starts at the filing date instead of formation, stranding early donations.
Questions people actually ask
How long does the IRS take?
The 1023-EZ commonly comes back in a few weeks; the full 1023 usually runs a few months and can stretch longer if an examiner has questions. Neither blocks the rest of your build: keep going on stages 2 and 3 while you wait.
Can we accept donations while the application is pending?
Yes. File within the 27-month window and approval is retroactive to your formation date, which makes donations received while pending deductible once the determination letter arrives. Be straight with early donors: “501(c)(3) application pending” is the honest phrasing. The §25F credit is a separate gate; that one waits for your state listing in stage 4.
What if the IRS rejects us?
Outright denials are rare for organizations with the right clauses in their articles and bylaws, which is exactly what steps 2 and 4 installed. What actually happens when something's off: the examiner sends questions, you answer them, sometimes you amend a document. Slow, not fatal.
Primary sources: IRS application process · 1023-EZ instructions + worksheet · User fees (IRS)
