• Latest
  • Trending
  • All
  • Management
  • Give & Care
  • Marketing
Additional Skepticism of Form 1023-EZ – Nonprofit Law Blog

Additional Skepticism of Form 1023-EZ – Nonprofit Law Blog

September 11, 2022
10 Unique Nonprofit Fundraising Ideas for a Productive 2023

10 Unique Nonprofit Fundraising Ideas for a Productive 2023

January 27, 2023
Nonprofit Tweets of the Week – 1/27/23 – Nonprofit Law Blog

Nonprofit Tweets of the Week – 1/27/23 – Nonprofit Law Blog

January 27, 2023
Advertisement
2023 Nonprofit Communications Trends – Highlights from Our Report

2023 Nonprofit Communications Trends – Highlights from Our Report

January 27, 2023
Are You Giving Your Donors the Trump Treatment? – Agitator

Are You Giving Your Donors the Trump Treatment? – Agitator

January 27, 2023
My High Openness Got In the Way of Your Social Proof Nudge – Agitator

My High Openness Got In the Way of Your Social Proof Nudge – Agitator

January 26, 2023
Seeking Nominations for the 2023 Outstanding Nonprofit Lawyer Awards – Nonprofit Law Blog

Seeking Nominations for the 2023 Outstanding Nonprofit Lawyer Awards – Nonprofit Law Blog

January 25, 2023
Should Your Fundraising Match a Chatbot? – Agitator

Should Your Fundraising Match a Chatbot? – Agitator

January 25, 2023
Nonprofit Social Media Objectives: Why Does Your Nonprofit Use Social Media

Nonprofit Social Media Objectives: Why Does Your Nonprofit Use Social Media

January 24, 2023
Does Your Job Security Match that of a Roman Emperor? – Agitator

Does Your Job Security Match that of a Roman Emperor? – Agitator

January 24, 2023
Love or Hate AI as Writing Tool? – Agitator

Love or Hate AI as Writing Tool? – Agitator

January 23, 2023
Friday, January 27, 2023
  • Home
  • Charity News
  • Give & Care
    10 Unique Nonprofit Fundraising Ideas for a Productive 2023

    10 Unique Nonprofit Fundraising Ideas for a Productive 2023

    How to Create Successful Nonprofit Fundraising Videos

    How to Create Successful Nonprofit Fundraising Videos

    Taking Nonprofit Email Marketing a Step Further: 6 Tips

    Taking Nonprofit Email Marketing a Step Further: 6 Tips

    4 Fundraising Delusions That Nonprofits Go Through

    4 Fundraising Delusions That Nonprofits Go Through

    3 Ways You’re Holding Your Campaign Back Without Knowing It

    Transform Your Giving & Engagement With GCSmart Tools

    Transform Your Giving & Engagement With GCSmart Tools

    5 Tips To Supercharge Your Year End Charitable Giving

    5 Tips To Supercharge Your Year End Charitable Giving

    All You Need To Know About Donor Cultivation For Nonprofits

    All You Need To Know About Donor Cultivation For Nonprofits

    3 Ways to Engage Your Local Community in Fundraising

    3 Ways to Engage Your Local Community in Fundraising

    The Ideal SEO Checklist for Nonprofit Organizations

    The Ideal SEO Checklist for Nonprofit Organizations

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Management
    Nonprofit Tweets of the Week – 1/27/23 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/27/23 – Nonprofit Law Blog

    Seeking Nominations for the 2023 Outstanding Nonprofit Lawyer Awards – Nonprofit Law Blog

    Seeking Nominations for the 2023 Outstanding Nonprofit Lawyer Awards – Nonprofit Law Blog

    Entering into a Fiscal Sponsorship Agreement – Nonprofit Law Blog

    Entering into a Fiscal Sponsorship Agreement – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/20/23 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/20/23 – Nonprofit Law Blog

    Board Composition – Nonprofit Law Blog

    Board Composition – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/13/23 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/13/23 – Nonprofit Law Blog

    Gene & Amy’s 2023 Outlook – Nonprofit Law Blog

    Gene & Amy’s 2023 Outlook – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/6/23 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/6/23 – Nonprofit Law Blog

    California Proposed Regulations – Article 1 – Nonprofit Law Blog

    California Proposed Regulations – Article 1 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 12/30/22 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 12/30/22 – Nonprofit Law Blog

    Trending Tags

    • Donald Trump
    • Future of News
    • Climate Change
    • Market Stories
    • Election Results
    • Flat Earth
  • Marketing
    2023 Nonprofit Communications Trends – Highlights from Our Report

    2023 Nonprofit Communications Trends – Highlights from Our Report

    Nonprofit Social Media Objectives: Why Does Your Nonprofit Use Social Media

    Nonprofit Social Media Objectives: Why Does Your Nonprofit Use Social Media

    Mixed Links: News and Tips for Nonprofit Marketers – January 20, 2023

    Mixed Links: News and Tips for Nonprofit Marketers – January 20, 2023

    What Social Network Helps Nonprofits Achieve Their Communications Objectives?

    What Social Network Helps Nonprofits Achieve Their Communications Objectives?

    Mixed Links: News and Tips for Nonprofit Marketers – January 13, 2023

    Mixed Links: News and Tips for Nonprofit Marketers – January 13, 2023

    How Working from Home Makes Nonprofit Communications Work Much Harder

    How Working from Home Makes Nonprofit Communications Work Much Harder

    Stop Overcommitting! 5 Actions to Help You Better Manage Your Time

    Stop Overcommitting! 5 Actions to Help You Better Manage Your Time

    Mixed Links: News and Tips for Busy Nonprofit Marketers – January 6, 2023

    Mixed Links: News and Tips for Busy Nonprofit Marketers – January 6, 2023

    Photography Tips for Nonprofits – Nonprofit Marketing Guide

    Photography Tips for Nonprofits – Nonprofit Marketing Guide

    2023 Marketing Trends from Around the Internet

    2023 Marketing Trends from Around the Internet

    Trending Tags

    • Flat Earth
    • Sillicon Valley
    • Mr. Robot
    • MotoGP 2017
    • Golden Globes
    • Future of News
  • Organization & Strategy
  • Resources
No Result
View All Result
Charity Racers
Advertisement
  • Home
  • Charity News
  • Give & Care
    10 Unique Nonprofit Fundraising Ideas for a Productive 2023

    10 Unique Nonprofit Fundraising Ideas for a Productive 2023

    How to Create Successful Nonprofit Fundraising Videos

    How to Create Successful Nonprofit Fundraising Videos

    Taking Nonprofit Email Marketing a Step Further: 6 Tips

    Taking Nonprofit Email Marketing a Step Further: 6 Tips

    4 Fundraising Delusions That Nonprofits Go Through

    4 Fundraising Delusions That Nonprofits Go Through

    3 Ways You’re Holding Your Campaign Back Without Knowing It

    Transform Your Giving & Engagement With GCSmart Tools

    Transform Your Giving & Engagement With GCSmart Tools

    5 Tips To Supercharge Your Year End Charitable Giving

    5 Tips To Supercharge Your Year End Charitable Giving

    All You Need To Know About Donor Cultivation For Nonprofits

    All You Need To Know About Donor Cultivation For Nonprofits

    3 Ways to Engage Your Local Community in Fundraising

    3 Ways to Engage Your Local Community in Fundraising

    The Ideal SEO Checklist for Nonprofit Organizations

    The Ideal SEO Checklist for Nonprofit Organizations

    Trending Tags

    • Golden Globes
    • Mr. Robot
    • MotoGP 2017
    • Climate Change
    • Flat Earth
  • Management
    Nonprofit Tweets of the Week – 1/27/23 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/27/23 – Nonprofit Law Blog

    Seeking Nominations for the 2023 Outstanding Nonprofit Lawyer Awards – Nonprofit Law Blog

    Seeking Nominations for the 2023 Outstanding Nonprofit Lawyer Awards – Nonprofit Law Blog

    Entering into a Fiscal Sponsorship Agreement – Nonprofit Law Blog

    Entering into a Fiscal Sponsorship Agreement – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/20/23 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/20/23 – Nonprofit Law Blog

    Board Composition – Nonprofit Law Blog

    Board Composition – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/13/23 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/13/23 – Nonprofit Law Blog

    Gene & Amy’s 2023 Outlook – Nonprofit Law Blog

    Gene & Amy’s 2023 Outlook – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/6/23 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 1/6/23 – Nonprofit Law Blog

    California Proposed Regulations – Article 1 – Nonprofit Law Blog

    California Proposed Regulations – Article 1 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 12/30/22 – Nonprofit Law Blog

    Nonprofit Tweets of the Week – 12/30/22 – Nonprofit Law Blog

    Trending Tags

    • Donald Trump
    • Future of News
    • Climate Change
    • Market Stories
    • Election Results
    • Flat Earth
  • Marketing
    2023 Nonprofit Communications Trends – Highlights from Our Report

    2023 Nonprofit Communications Trends – Highlights from Our Report

    Nonprofit Social Media Objectives: Why Does Your Nonprofit Use Social Media

    Nonprofit Social Media Objectives: Why Does Your Nonprofit Use Social Media

    Mixed Links: News and Tips for Nonprofit Marketers – January 20, 2023

    Mixed Links: News and Tips for Nonprofit Marketers – January 20, 2023

    What Social Network Helps Nonprofits Achieve Their Communications Objectives?

    What Social Network Helps Nonprofits Achieve Their Communications Objectives?

    Mixed Links: News and Tips for Nonprofit Marketers – January 13, 2023

    Mixed Links: News and Tips for Nonprofit Marketers – January 13, 2023

    How Working from Home Makes Nonprofit Communications Work Much Harder

    How Working from Home Makes Nonprofit Communications Work Much Harder

    Stop Overcommitting! 5 Actions to Help You Better Manage Your Time

    Stop Overcommitting! 5 Actions to Help You Better Manage Your Time

    Mixed Links: News and Tips for Busy Nonprofit Marketers – January 6, 2023

    Mixed Links: News and Tips for Busy Nonprofit Marketers – January 6, 2023

    Photography Tips for Nonprofits – Nonprofit Marketing Guide

    Photography Tips for Nonprofits – Nonprofit Marketing Guide

    2023 Marketing Trends from Around the Internet

    2023 Marketing Trends from Around the Internet

    Trending Tags

    • Flat Earth
    • Sillicon Valley
    • Mr. Robot
    • MotoGP 2017
    • Golden Globes
    • Future of News
  • Organization & Strategy
  • Resources
No Result
View All Result
Charity Racers
No Result
View All Result
Advertisement Advertisement Advertisement
Home Management

Additional Skepticism of Form 1023-EZ – Nonprofit Law Blog

by brookridgearcadia
September 11, 2022
in Management
0
Additional Skepticism of Form 1023-EZ – Nonprofit Law Blog
491
SHARES
1.4k
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT


Taxonomy of 501(c)(3) Organizations Approved in FY 2021

Figure 4: Taxonomy of 501(c)(3) Organizations Approved in FY 2021

A startup nonprofit wishing to apply for IRS recognition of tax-exemption under 501(c)(3) must file either Form 1023 or Form 1023-EZ. The Form 1023-EZ is only available to organizations that meet certain eligibililty requirements, including projection of gross revenues of no greater than $50,000 in any of the next three years. A Form 1023-EZ Eligibility Worksheet available on page 13 of the Instructions for Form 1023-EZ must be completed before filing a Form 1023-EZ.

According to the IRS, “[u]se of Form 1023-EZ has grown since its introduction in 2014, and the TE/GE division of the IRS continues its efforts to collect, monitor and evaluate data to understand the impact and opportunities from this important change to its determination process.” From the Tax Exempt and Government Entities Fiscal Year 2021 Accomplishments Letter, it appears that the Form 1023-EZ was used in close to 75 percent of all exemption applications in fiscal year 2021 (ending September 30, 2021).

The Form 1023-EZ has faced strong criticism from many exempt organizations practitioners, state charities regulators and the National Association of State Charity Officials (NASCO), the Taxpayer Advocate (an independent organization within the IRS), and some high profile national nonprofits like the National Council of Nonprofits largely because the Form offers little information for an examiner to substantively review beyond a mission statement, NTEE Code, and several check boxes. Nevertheless, the benefits of quicker processing times and clearance of an unacceptable backlog of applications have led the IRS to defend continued use of the Form 1023-EZ with some minor changes (e.g., 2021 Memorandum).

But the ease provided by Form 1023-EZ for a founder intentionally or unintentionally to get 501(c)(3) status for an organization that does not qualify is alarming. And for startups that plan on seeking funds from foundations, there may be a time when these funders consider use of the Form 1023-EZ a strike against a grant applicant since it likely heightens their due diligence requirements since the IRS has severely reduced its review.

The criticism of Form 1023-EZ continues to grow louder …

Letter to IRS Commissioner from Chair of House Oversight Subcommittee About IRS Processing of 501(c)(3) Exemption Applications

July 20, 2022

Dear Commissioner Rettig,

I write today with urgency regarding a recent article in The New York Times about the haphazard approval process for tax-exempt organizations described in Section 501(c)(3) of the Internal Revenue Code.[1] The article states that a “convicted stock market fraudster” successfully applied for tax exemptions for 76 phony nonprofit charities, many of which used names almost indistinguishable from well-known nonprofits. Fifty-six of the approved fraudulent organizations applied using Internal Revenue Service (IRS) Form 1023-EZ, which requires minimal information from applicants. This should never have happened.

Although Form 1023-EZ was developed to curtail an increasing backlog of exempt organization applications, it seemingly led to fraudulent applications being approved with lax oversight by the IRS. A 2019 study by the Taxpayer Advocate Service found that 46% – nearly half – of approved applicants did not actually pass the “organizational test” required by statute to establish legitimacy as a charitable organization.[2] Once approved, bogus charities scam unwitting donors who trust IRS-certified 501(c)(3) organizations to be properly vetted and legitimate. The IRS has failed these citizens.

To help the Ways and Means Subcommittee on Oversight better understand how the IRS processes applications for tax exemption, please provide answers to the following questions by August 3, 2022:

  1. For both Forms 1023-EZ and Forms 1023, please provide the following: (a) the number of applications received each year since 2015; (b) the number of applications approved; (c) the number of applications rejected; (d) the number of applications returned for additional information that then provided such information; and (e) the number of applications returned for additional information that failed to provide such information.
  2. Describe the procedures for processing Forms 1023-EZ, including who reviews the application, the average amount of time (number of hours) to review the application, and the number of days, on average, from receipt to IRS’s determination. What steps are taken when there is suspected fraud?
  3. Describe the current oversight of the tax-exempt organization application process. What happens with respect to an application when the IRS is notified of concerns by individuals, the media, law enforcement, state tax agencies, or other organizations?Additionally, I request a briefing for my staff on this issue and expect your prompt attention

to this matter.

Sincerely,

page2image606623632

1 David Fahrenthold, Troy Olson, and Julie Tate, 76 Fake Charities Shared a Mailbox. The I.R.S. Approved Them All, The New York Times (July 3, 2022), https://www.nytimes.com/2022/07/03/us/politics/irs-fake- charities.html.
2 Taxpayer Advocate Service, Study to the Extent to Which the IRS Continues to Erroneously Approve Form 1023-EZ Applications (Jan. 8, 2020), https://www.taxpayeradvocate.irs.gov/wp content/uploads/2020/11/ARC19_Volume1_TRRS_04_StudyExtent.pdf.

Related



Source link

Share196Tweet123Share49
brookridgearcadia

brookridgearcadia

  • Trending
  • Comments
  • Latest
New Members Elected to CalNonprofits Board

New Members Elected to CalNonprofits Board

Update on Sick Leave Relief for Nonprofits

Update on Sick Leave Relief for Nonprofits

Check out these upcoming events

Check out these upcoming events

10 Unique Nonprofit Fundraising Ideas for a Productive 2023

10 Unique Nonprofit Fundraising Ideas for a Productive 2023

January 27, 2023
Nonprofit Tweets of the Week – 1/27/23 – Nonprofit Law Blog

Nonprofit Tweets of the Week – 1/27/23 – Nonprofit Law Blog

January 27, 2023
2023 Nonprofit Communications Trends – Highlights from Our Report

2023 Nonprofit Communications Trends – Highlights from Our Report

January 27, 2023

Advertisment

Charity Racers

Copyright © 2020 Crarity Racers All Rights Reserved

Navigate Site

  • Home
  • About
  • Disclosure
  • Terms of Use
  • Privacy & Policy
  • Advertise
  • Contact

Follow Us

No Result
View All Result
  • Home
  • Charity News
  • Give & Care
  • Organization & Strategy
  • Marketing
  • Management
  • Resources

Copyright © 2020 Crarity Racers All Rights Reserved

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT