Our experts help you achieve 501(c)(3) status that is properly structured and ready for success.

P&A has helped over 8,000 organizations obtain tax-exempt status since 1999

Experience and credentials matter – licensed attorneys and tax specialists prepare your application.

Our service includes preparing the necessary forms and supporting documents for the IRS and state tax revenue boards, reviewing and amending the organizing documents, and preparing corporate bylaws.

We don’t just prepare forms – we offer a guided approach to obtaining a 501(c)3 exemption and can answer a wide range of legal questions. We walk you through the entire 501(c)3 application process by providing exceptional service and support.

Admitted to Practice Before the IRS -Enrolled Agent

Reasonable Flat-Rate Fees

No matter what services you’re looking for, our team of attorneys can provide them at an affordable rate. We believe that every organization should have access to high-quality services, without having to break the bank.

Nonprofit Formation

$99

  • Name Availability
  • Preparing and Filing Nonprofit Articles of Incorporation
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Form 1023 EZ

$350

  • Annual gross receipts under $50,000 in any of the next three years or past three years.
  • Total assets under $250,000.
  • Churches, schools, or hospitals require standard form 1023.
Order

Standard 1023 Form

$599

  • Annual gross receipts over $50,000 in any of the next 3 years or past 3 years.
  • Total assets over $250,000.
  • Churches, schools, or hospitals.
Order

Our Guarantee

We are proud of our 100% approval rate. If the IRS denies your application for any reason – we will refund our service fees.

Our 501c3 Preparation Services Include

We’d Love to Hear From You

What our Clients Say

“We were granted 501(c)3 status within 10 days – it was a very easy experience, they were available anytime I called”
Deborah Eskow, Save a Kitty, Inc.
“We went through the process quickly, efficiently, and inexpensively”
Christopher Onzo, Paderewski Music Society

Trusted by nonprofits around the world

The Enlighten Foundation
Save a Kitty
Black Women Lead
Holy Trinity Church

Along with 8,000+ others

Sample Benefits of 501(c)3 Tax-Exempt Status
  • Tax-free income – Income earned by the organization is deemed tax-free.
  • Tax-deductible donations – Donors can make charitable contributions and receive a tax deduction on their tax returns.
  • Employee benefits – Employees will be entitled to various fringe benefits, such as group life insurance, health insurance, corporate pension plans, etc.
  • Grants – The organization will be qualified to receive private and public grants.
  • Postage – Lower postage rates on corporate mailings.
  • Public Service Announcements – Reduced rates for radio and PSA announcements in the local media.

Related Services

Commonly Asked Questions

If a company holds a non-profit status, it can take part in many benefits, including the ability to take advantage of property, income, state, and sales income tax exemptions. It’s important to note that while a company may become a non-profit at the state level, there are no guarantees that the organization will take advantage of federal income tax exemptions.

Many non-profit organizations are federally tax-exempt. To take advantage of federal and state income exemptions, an organization must apply for an exemption. Both the IRS and the state franchise board must approve this status.

To take advantage of private and government-based grants, most organizations must have a tax-exempt corporation status. In many cases, there are regulations in place that require charities, private foundations, and government grant foundations to make donations only to 501c3 tax-exempt organizations. If these rules are broken, foundations may lose their tax-exempt status.

Other benefits include discounted advertising, bulk mail discounts, and other government and private savings.

To take advantage of this status, you must meet the requirements outlined in the Internal Revenue Code. To be 501c tax-exempt, an organization must function for one of the following purposes:

  • Charitable
  • Religious
  • Educational
  • Scientific
  • Literary
  • Testing for Public Safety
  • Fostering national or international amateur sports competition
  • The prevention of cruelty to children or animals

Other organizations can take advantage of tax exemption status. These include chambers of commerce, fraternal societies, labor unions, social and recreational clubs, civil leagues, legal service organizations, credit unions, farmers’ corps, and mutual insurance companies.

Your non-profit income activities will need to be substantially restricted to the stated purpose of your tax-exempt basis. Income from sources unrelated to the purpose of the organization will be taxable. Suppose this unrelated income starts to become a substantial portion of the income earned. In that case, this could attract attention from the IRS and prompt a reconsideration of the 501(c)(3) tax-exempt status.

Additionally, you will not benefit from the value of any assets of the non-profit corporation. All assets of the corporation must be dedicated to tax-exempt purposes. Upon dissolution of the corporation, all assets must be distributed to other 501(c)(3) corporations.

Furthermore, payments of dividends to shareholders or payments of profits to directors, officers, members, or staff are prohibited; however, reasonable salaries are allowed.

Yes, this is possible. The corporation can bring in more money than it spends. Tax-free profits can be used to handle operating expenses. A non-profit corporation is unable to give away its profits to directors, employees, and officers.

It’s important to note that applying for state and federal exemptions are two completely different processes. Once a corporation has obtained federal tax exemption status, it must follow separate procedures to get state tax exemption status. Depending on the state, it may be possible to first obtain a state tax exemption before completing the process of applying for federal exemption status.

The approval process period can vary greatly, depending on how much previous work the IRS has to complete and the uniqueness of the organization’s exemption purpose. It generally takes between 1 to 4 weeks for the 1023 EZ form to 2 and 6 months to receive approval for the 1023 standard form. In many cases, recognizing an organization’s exemption status is backdated to the incorporation date.

There are still tax responsibilities that must be met. If you are a private foundation, you will be required to pay taxes based on the investment earnings you’ve made and the minimum undistributed grant allocations. You will also be required to pay taxes based on any unrelated business income that you may have. Additionally, you will have state and federal employment tax responsibilities, as well as the need to pay property taxes.

Non-profit organizations cannot give away dividends or shares to their directors, officers, or organization members. A profit organization can give away shares of stock. In this situation, shareholders can benefit from their investments.

Yes. A non-profit corporation can bring in more money than it spends. The profits can be used to cover operational costs. These profits can’t be given to directors, employees, and officers in the form of dividends.

The Attorney General has the authority to monitor and investigate a non-profit corporation’s activities, including the ability to investigate non-profit corporation charities and investigate all corporations’ records, including those that are non-profits.

There are no differences between the two. Both a Board of Directors and a Board of Trustees hold the same meaning. Many non-profits choose to have a Board of Advisors and outline its powers in the bylaws. Unless the bylaws outline legal authority, the Board of Advisors doesn’t possess legal authority.