- Serving Taxpayers Since 1993
- File In Person or Fully Virtual
- Year-Round Help, Not Just Tax Season
- Nonprofit & Church Specialists
- Flexible Refund & Payment Options
Fort Bend County adds new ministries and charities every year. A mentoring group started by neighbors in Elyson. A food pantry run out of a church fellowship hall. A scholarship fund in memory of a coach. Sooner or later, each one needs IRS proof that gifts to it are tax-deductible. In Katy, that letter also opens the door to Texas tax exemption. We help you prepare a 501(c)(3) application that is complete the first time it goes in.
When You Need a 501(c)(3) Application
You need it once your group is set up for a charitable, religious or educational purpose and you want the IRS to confirm it in writing. Often someone else sets the timing. A foundation won’t review a grant request without a determination letter. A company wants to match an employee’s gift.
Texas gives you one more reason. For most nonprofits, the Comptroller will not grant franchise or sales tax exemption until it sees the IRS letter, so the federal application is the first domino. The calendar matters too. Apply within 27 months of the end of the month you formed, and an approval generally dates your exemption back to your formation date. Wait longer and it usually starts the day you applied.
Our 501(c)(3) Application Process
First we pick the right form. The shorter Form 1023-EZ is only for small groups. The IRS instructions for Form 1023-EZ include a worksheet that rules it out if yearly gross receipts went over 50,000 dollars in any of the last three years, or are likely to in the next three, or if your assets are worth more than 250,000 dollars. A church can’t use it at all. Groups that don’t fit the short version use the full Form 1023. You submit either one online and pay the IRS its user fee there.
Next we pull the pieces together: your Certificate of Formation from the Texas Secretary of State, your bylaws, your EIN, a short write-up of what each program does and the money figures the IRS wants to see. We check that your formation papers carry the purpose and dissolution wording the IRS expects. Then we write the narrative together and walk through the finished form line by line before anyone signs. When the IRS mails follow-up questions, we work through the replies with you.
501(c)(3) Application Cost in Katy
What you pay depends on the form and on how much is already done. A small group that fits the 1023-EZ, with formation papers and bylaws ready, needs far fewer hours than a group with three programs and several years of history behind it. If your Certificate of Formation needs an amendment first, that adds a step. The IRS charges its own user fee, which goes to the IRS, not to us. You get our fee before we start.
Should a New Church Apply?
Church plants ask us this often. The IRS says on its page about churches and their tax-exempt status that a church meeting the 501(c)(3) rules is exempt automatically and does not have to apply. Many apply anyway. A letter in hand gives members, donors and banks something to rely on, and it makes the Texas side and grant requests simpler for a ministry running a daycare or outreach program.
Why Choose Us for 501(c)(3) Application Help
The application is only the start. What you say about programs, pay and fundraising should match how you run the group later, and the same office can carry you through the Texas exemption, your first 990 and your payroll. We have prepared taxes since 1993 and keep the same hours all year, so a question from the IRS in July gets a reply in July. Meet us on Kingsland Boulevard or work with us online from anywhere in Fort Bend County.
The application is the first step in our full nonprofit support in Katy.
Common Questions
Can we hold fundraisers before the IRS approves us?
Yes, but let donors know the deduction hinges on the IRS saying yes. When you apply inside the 27-month window and get approved, the exemption generally dates back to your formation, so gifts made in between count.
What if our church belongs to a denomination?
Check with your denomination first. Some national church bodies hold a group exemption that covers member churches, so you may not need your own application. If your church is not on that list, you can apply on your own.