Federal Nonpofit Signup

Signing up for Federal Non-profit, 501(c)3 Status:

Are you a library or Friends group curious about signing up for Federal Nonprofit status? The Consultants at NCLS can help!

 

Why should my FRIENDS group get 501(c)3 status?
For friends groups, acquiring 501(c)3 status is very affordable and easy to do. There are 2 main reasons why your Friends should get 501(c)3 status: 
 
1. Your recognized organization will not be subject to federal income tax.
2. Donations made to the friends will be tax deductible. A patron may not make a substantial donation to your Friends group if they are not able to write it off on their taxes. 

 

The 1023 Application

To apply for Federal Non-profit status, you'll need to fill out the 1023 application, which the consultants at NCLS can assist with. There is both a 'long' version, and a short 'EZ' version.

The 1023-EZ Non-profit application is the shorter version of the traditional 1023. If your organization is small enough, your library or friends group may qualify to use this short form. While there are some more factors that won't apply to libraries or friends, here are some of the main qualifying factors for who can use the 1023-EZ:

  • Projected Annual Gross Receipts does not exceed $50,000 in any of the next 3 years
  • Annual Gross Receipts did not exceed $50,000 in any of the last 3 years (Not sure if you qualify? Libraries can look at line 11.26 on a previous annual report!)
  • Total assets do not exceed $250,000

For the entire list, go HERE.

 

 

Consulting: