Eligibility for Form 1023-EZ depends on the IRS eligibility worksheet and includes organizational, financial, and activity-based limitations. Because eligibility rules can change, founders should use the current IRS instructions rather than relying on a simple revenue rule or an old checklist.

Most organizations apply for 501(c)(3) recognition electronically through Pay.gov, using Form 1023 or, if eligible, the shorter Form 1023-EZ; the current IRS user fee is $600 for Form 1023 and $275 for Form 1023-EZ. Form 1023-EZ eligibility depends on the IRS eligibility worksheet, not simply on small size, so complete that worksheet before assuming eligibility. Before submitting either form, reconcile the legal name, EIN, formation date, purpose language, and financial figures, and prepare clear, factual narrative descriptions of what the organization will actually do rather than relying on broad mission language.

When a decision depends on the organization’s specific facts, use the current agency instructions and qualified professional advice as appropriate.

How Beacon Nonprofit can help: BeaconComplete can guide the organization through the federal exemption application process and help collect the information needed for the applicable filing. Eligibility for Form 1023-EZ is determined under IRS rules, so Beacon cannot simply choose the shorter form when the organization does not satisfy the federal eligibility criteria. Beacon's role is administrative formation and filing support: government agencies control approval, processing times, and legal or tax determinations, and specialized operational matters may require a qualified professional outside Beacon's service scope. Depending on the selected package, the Beacon records available to the organization can include the approved state formation documents and, with BeaconComplete, EIN assistance, corporate bylaws, registered agent service, and the 501(c)(3) application materials prepared through the service.