InstantNonprofit

How long does IRS approval of tax-exempt status take?

Over the past decade, the average IRS approval time has ranged from 10 to 18 months or more. Even with the full Form 1023 for 501(c)(3) status, Instant Nonprofit files typically receive approval in about 4 to 6 months, reducing delays by roughly one half to two thirds. Streamlined applications from Instant Nonprofit customers are averaging about 4 to 8 weeks.

How can you offer faster than normal tax-exempt approval?

After filing thousands of 501(c)(3) applications, we use proven processes and complete, high quality submissions. We also communicate professionally with IRS representatives and provide clear, accurate information to help avoid delays.

Does Instant Nonprofit help with grant writing or fundraising as well as filing my 501(c)(3)?

Yes. We include basic fundraising training and resources at no additional cost with our 501(c)(3) formation packages. We also offer professional fundraising training through a long time partner and can introduce you to vetted grant writers.

What if I already formed an LLC or other entity, or obtained an EIN, before working with Instant Nonprofit?

An LLC is not compatible with a 501(c)(3) nonprofit. If an LLC was started for this purpose, it must be dissolved. The correct entity type is a nonprofit corporation, and specific purpose and dissolution clauses are required. If a prior filing is missing required language, we will review and file the proper amendment at no charge, excluding government fees. Any EIN assigned to another entity cannot be reused for your new nonprofit, so a new EIN must be obtained. In many cases it is best to start fresh with Instant Nonprofit so we can handle the process end to end.

Can I be reimbursed, or receive a write off against my personal income taxes, for my nonprofit startup costs?

Yes. Your nonprofit can reimburse you later, or you can treat qualified expenses as a charitable donation for tax purposes. Keep receipts and create a clear paper trail, such as an invoice or a written acknowledgment from the nonprofit.

How much does it cost, and how long does it take?

The IRS offers two paths to 501(c)(3) status based on expected donations. Organizations expecting more than $50,000 in the current or either of the next two tax years typically use the Enterprise plan. Those expecting under $50,000 per year typically use the Express plan. About 88 percent of our customers qualify for Express and about 12 percent choose Enterprise. The IRS 501(c)(3) designation is the same for both. If you start with Express and later exceed $50,000, there is no penalty and no need to refile. Current pricing and timelines appear on the package page when you click Get started.

Can my for profit and nonprofit work together?

Yes. You can create a strategic partnership between a for profit and a nonprofit. Your nonprofit will be a separate legal entity and must operate independently from the for profit.

If I start a nonprofit under the Express plan and exceed $50,000 in donations, what happens?

There is no penalty and you do not need to file a new application. The Enterprise package is designed for organizations that anticipate donations above $50,000 in years one, two, or three, while Express is for those expecting to stay below that threshold. If you exceed it, simply report revenues on the appropriate Form 990 in the following year.