Basic requirements
- Exempt purpose. Examples include charitable, religious, educational, scientific, literary, public-safety testing, amateur sports, and prevention of cruelty purposes.
- Proper organizing document. The Articles must limit purposes and permanently dedicate assets to exempt purposes.
- Public benefit. Earnings cannot improperly benefit founders, insiders, or private shareholders.
- Political restrictions. A 501(c)(3) cannot participate in campaigns for or against candidates, and lobbying must remain limited under the applicable rules.
- Application and ongoing compliance. Most organizations apply using Form 1023 or eligible Form 1023-EZ and then complete annual and state obligations.
Is a good idea enough?
No. A worthy mission still needs the right legal structure, governing language, operational plan, financial controls, and records. The IRS considers both what the organization says it will do and how it actually operates.
Which application might fit?
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