Filing a 501c3 tax exemption application can be an extremely challenging job for those who are just starting out in the non-profit world. So how do you know if you should seek help with the application process? Knowing the ways professional help – usually an attorney with experience dealing with the IRS – can help you with your endeavor will help you decide at once whether you will enlist others’ expertise for this task.
Paperwork Headaches
For most people, paperwork is always a headache. With the 501c3 form, however, a pile of paperwork the likes of which you haven’t seen may be placed in front of you, no guidance offered. A tax attorney who deals with these IRS forms on a daily basis can help either cut the paperwork down some or help you keep on track as to which forms you need, what business plans to write up, and which administrators to list. The 501c3 application in total can be up to 20 pages, so if that kind of paperwork is too much for you to handle, enlist help!
Red-Tape Dodging
Another problem startup non-profits often run into is a lot of red-tape style obstruction in the application process. Many times individuals that do the paperwork themselves send in the forms and then wait, and wait, and wait to hear about the status of that application. Because the IRS has such procedures to go through, an attorney or other form preparation professional usually has more luck in requesting and receiving information as to the status of an application. This can cut down the worry, time wasted and waiting time to file and complete an application successfully.
Government Consequences
Unfortunately, not all non-profit organizations are really non-profit. There are a great many organizations that use their non-profit status for personal gain. Therefore, the IRS keeps a strict monitoring system in effect to identify and locate organizations that need to be shut down. Enlisting professional help with your application of a 501c3 tax exemption can help by keeping these things from happening to you, a potentially reputable and honest non-profit leader. A single un-dotted “I” or uncrossed “t” can mean the difference between having a rising non-profit organization to having one that must pay taxes and will soon go under from the financial strain.
There is of course a fee for using professional help with your 501c3 tax exemption application as well as the fees involved in applying in the first place, but this shouldn’t deter a determined non-profit leader who truly wants to be successful and make a difference.
Nonprofit Legal Center offers tips and resources for you to learn more about starting a 501c3 and setting up a 501c3 organizations.