How To Get 501c3 Verified For Your Nonprofit? - The Key To Unlocking Unlimited Funding.

If you’re in the nonprofit industry or learning more about the occupation, you have or will have heard the term, “501c3” status. This is every grass root nonprofit’s worst nightmare. The “501c3”is officially recognized by the IRS and state as an official nonprofit and becoming tax-exempt. When I first began, this was hands down the most stressful phase of our journey. Hearing from different people on how difficult it would be to obtain that status and how long it would take was quite discouraging to a 20-year-old college student. After the summer of 2017, I decided to give myself a year to obtain the “501c3” status. Placing this on my calendar for Summer 2018 to apply and obtain our status, I began working tirelessly to achieve my goal. What I highly advise to anyone is to self-educate yourself on the topic and exactly all it entails.

To me, choosing a nonprofit made the most sense due to the factor of our mission/purpose and business structure on how I created our vision. For others, sometimes going the nonprofit route won’t make sense, and that’s totally fine. Therefore it’s important to research, take notes, and analyze all options while weighing all of the pros/cons of each business detail. There are different statuses for nonprofit to get a better understanding of each, and in identifying which one makes the most sense for your organization, spend time investing in your organization and researching extensively.  Set aside a budget of $1,000 for the purpose of obtaining your 501c3 status. This budget will consist of any application processing, potential lawyer fees, obtaining resources, etc. “The best investment in life we can make is the investment in self”- an infamous quote I share every time when speaking to inspire others to invest in our knowledge. Once you began researching, start building a network of individuals you can learn from, ask questions, and try to shadow their business techniques. Preferably in the nonprofit industry, so you can get a better understanding of how it operates and works.

Once you have gathered enough information, begin your financial planning. Before applying for public charity status, you will need to have a detailed outline for business and personal files on your budget, expenses, revenue stream, and allocating all finances for the fiscal year. By now, you’ll have a pretty good source of information on your nonprofit resume, now that you are eligible to apply. Once you have gathered the necessary information, you can begin to apply! There are numerous ways to apply for the status. You can do it yourself, which is the easiest route (in my opinion), hire a lawyer to take care of the process, take it step by step, obtaining all other necessary documentation first. It’s totally up to your organization and the current situation you are in. I highly advise you to promptly prepare before making a decision, which is why I decided to make an executive order of waiting a whole year to develop and prepare precisely before applying to obtain our status, so much information in the palm of our hands to access.

I HIGHLY ADVISE spending a few hours out of your week dedicated to the planning and preparation. This requires patience, and timing is essential in the nonprofit industry. Knowing when and where to execute plans or projects can make or break your organization. After applying, it typically takes 3-4 months processing and determining from the IRS before hearing back from them with a decision. Once you receive your determination letter in the mail, your nonprofit is solidified under IRS tax-exempt. This allows you to receive charitable donations from businesses, corporations, personal donations, etc. The key to being accepted is having your foundation’s infrastructure intact from top to bottom, with a key mission defined and serving an authentic purpose, a board of directors in place, a detailed website, and your organization’s contact information, etc.

Art of Giving: One Nonprofit Can Change The World - Sebastian Sanders

www.sandershand.org