Starting a Nonprofit: Overview

Since 1981, the Community Resource Center (CRC) has assisted more than 145 grassroots organizations to incorporate their organizations in Colorado and to pursue a 501(c)(3) (tax exempt status) from the Internal Revenue Service (IRS).

While staff members of CRC no longer are able to provide counsel to inquiries about startup organizations or to provide servcies related to the Form 1023, we have compiled practical information that enables those organizations that are incorporating in Colorado and applying for 501(c)(3) status to minimize mistakes and unnecessary delays. 

View the following links to learn more:

• Coming in 2010: Nonprofit Start Up Workbook. Everything you need to know about the planning, process, and realities of starting a new nonprofit. Sign up for CRC’s monthly e-line so that you’ll be advised when this brand-new resource becomes available!
• CRC's class, New to Nonprofits? An Overview. This is a regularly scheduled introductory course that provides a broad overview of the best practices of starting, sustaining, and growing your own nonprofit. This class does not cover the Form 1023 specifically, but does address many of the planning aspects you will need to address before completing the Form.
• 501(c)(3) Nonprofit Organization FAQ
• What is the 501(c)(3) tax exempt incorporation process?
• Free Form 1023 Resources from Form1023Help.com
• Free Start Up Resources from BoardSource.org
• Stay Exempt: Internal Revenue Service Tax Basics for Exempt Organizations
  • Types of exempt status

Wondering about whether you need to start your own nonprofit? What about being a program of some other nonprofit?

You can be in touch with the Colorado Nonprofit Development Center, one of CRC's partners, to learn about their models of fiscal sponsorship.

I need help with my Form 1023!

CRC is pleased to provide information about two area providers who help groups with their Form 1023. Both providers have significant experience with nonprofits.

• Certified Public Accountant: Stuart Halpern
• Attorney: Karen Leaffer

Other important news:

The User Fees that must be paid with an exemption application (the Form 1023) are scheduled to increase on January 3, 2010.  Organizations whose gross receipts average less than $10,000 per year will pay $400.  Others will pay $850. When the Cyber Assistant becomes available later in 2010, (see below), applicants who use it will be eligible for a reduced User Fee of $200.

The IRS hopes to unveil its Form 1023 Cyber Assistant some time during 2010. This tool will guide applicants through the Form 1023, providing continuation sheets for lengthy responses, cover sheets for attachments, and relevant taxpayer education.  When a Cyber Assistant-aided application is finished, it must be printed out and submitted in the usual  way; special bar-coding on the printed form will alert the IRS that the applicant is eligible for the reduced User Fee of $200. 

The IRS has eliminated the advance ruling process described in Part X of Form 1023. The IRS will process exemption applications submitted before the new regulations under the new rules, and will revise application forms and instructions to incorporate the new requirements. For additional details, visit the charities page of the IRS website at www.irs.gov.

Special thanks to Sandy Deja of www.form1023help.com for these three critical pieces of information!

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