How to check and apply for nonprofit status
Many nonprofit leaders and a growing number of business owners are exploring how to start a nonprofit arm of a business. And it’s important to understand what the best structure is for your business.
Whether you’re launching a new nonprofit, launching a foundation as part of our existing business, or have been operating one for years, understanding your nonprofit status can open doors to grants, tax-deductible donations, corporate giving programs, nonprofit discounts, and more. Unfortunately, many organizations miss valuable opportunities simply because they haven’t verified their status or completed the application process correctly.
Let’s walk through how to check your status, where and how to apply for nonprofit recognition, and avoid some of the most common mistakes nonprofits make.
Why 501(c)(3) Status Matters
Obtaining a 501c3 status through the IRS allows your nonprofit to:
Accept tax-deductible donations
Apply for grants and foundation funding
Qualify for nonprofit technology discounts
Build credibility with donors and partners
Participate in corporate gift matching programs
Without federal tax-exempt status, many funding opportunities simply aren’t available.
Build Your Governance Foundation First
Before you touch an application, the IRS and most state filings expect your organization to have real governance in place. This is the step that new nonprofits (especially business-founded nonprofits) most often skip, and it's one of the more common reasons applications get flagged or delayed.
At a minimum, you'll need:
Bylaws that outline how your organization is governed and how decisions get made
An independent board of directors. For a standalone 501(c)(3), this means directors who aren't simply company employees or family members of the founder; genuine independence is part of what the IRS is evaluating
A conflict-of-interest policy, which the IRS specifically asks about during the exemption application
Getting these documents right at the outset saves real time later; weak or missing governance language is one of the most common causes of delays once you reach the federal application.
Before You Apply
Before you begin the application process, make sure you have the following documents and information ready. Having everything organized ahead og time will make the filing process much smoother and help prevent unnecessary delays.
Your nonprofit’s legal name
Employer Identification Number (EIN) from the IRS
List of your board of directors, including name and position
Mission statement describing your charitable purpose
Description of your current and planned activities
Contact information for your organization and a responsible officer
A debit or credit card on hand for filing fees
Once you’ve gathered these materials, you’re ready to begin the registration process with the IRS.
How to Obtain an EIN Number
An Employer Identification Number (EIN) serves as your organization’s federal tax ID number. Think of it as a Social Security Number for your nonprofit.
Before applying for nonprofit status, you’ll need an EIN from the IRS. This step is completely free and won’t take more than twenty minutes of your time to complete the application.
When applying:
Select “Other Non-profit/Tax-exempt Organizations” as your organization type.
Ensure your organization’s legal name is spelled correctly.
Use the same organization name across every document and application.
One of the most common delays in the nonprofit registration process comes from inconsistent information between filings. Even minor differences can create confusion and require additional time for corrections later.
Register Your Nonprofit with Your State
Forming a nonprofit organization at the state level is separate from obtaining federal tax-exempt status. Every state has a different process for registering, so do some research as to what your state requires and how to complete it accordingly.
In Minnesota, organizations must file nonprofit incorporation documents through the Secretary of State before applying for federal recognition.
During this step, you’ll establish:
Your nonprofit’s legal name
Incorporators
Registered agents
Official contact information
Accuracy matters. Every document should contain the same organization name, leadership information, and contact details.
Apply for Federal Tax-Exempt Status
Once your organization is legally incorporated and has an EIN, you can apply for federal recognition as a 501(c)(3) organization.
Many smaller nonprofits qualify to use Form 1023-EZ, a streamlined application submitted through Pay.Gov.
During the application process, you'll provide:
Organizational information
Leadership information
Mission and charitable purpose
Financial details
Classification information
You’ll also be asked to identify an NTEE code that best describes your organization’s mission and activities.
Choosing the most accurate classification helps ensure your nonprofit is properly categorized within IRS records and grant databases.
Commonly Missed Opportunities for New Nonprofits
Many organizations focus entirely on obtaining their nonprofit status and overlook the opportunities that become available afterward.
Grant Funding
Many grantmakers require proof of 501c3 status before reviewing applications. Organizations that delay filing often miss funding cycles that could help launch or expand programs.
Nonprofit Technology Programs
Verified nonprofits may qualify for discounts on:
Website hosting like Wordpress.com or Squarespace
Email marketing platforms such as Mailchimp or Constant Contact
Productivity software like Google Workspace for Nonprofits and Microsoft 365
Project management tools, including Asana, Monday.com, or Trello
Cloud storage solutions such as Google Drive, OneDrive, or Dropbox
These savings can significantly reduce administrative costs.
Corporate Giving Programs
Many companies offer employee matching gifts and charitable giving programs that require nonprofits to maintain an active 501(c)(3) status.
Google for Nonprofits and the Google Ad Grant.
Once your 501(c)(3) status is confirmed, you become eligible to apply for Google for Nonprofits — including the Google Ad Grant, which provides up to $10,000 per month in free Google Search advertising. It's one of the highest-value, most overlooked resources available to a newly approved nonprofit.
What’s Your Status?
If you’re not sure where your nonprofit stands today, now is a great time to find out.
Ask yourself:
Do we have an EIN?
Are we incorporated in our state?
Have we received IRS approval as a 501c3?
Are we taking advantage of the resources available to verified nonprofits?
If any of those questions gave you pause, that's exactly the kind of groundwork our team helps organizations get right from the start, from choosing the right structure through to launching your first marketing campaigns once you're approved.
Frequently Asked Questions
How long does it take to get 501(c)(3) status?
Filling out and completing the application depends on the length of your state form. The 1023-EZ form shouldn’t take longer than an hour if you have the proper information prepared.
The approval timeline depends on which IRS application your organization submits. Organizations that qualify to file for Form 1023-EZ often receive a determination anytime between a few weeks and a few months, while the standard Form 1023 may take longer. Processing times vary based on the IRS workload and whether additional information is requested.
How much does it cost to start a nonprofit organization?
The cost varies depending on your state and the type of application. Filing the 1023-EZ form with the IRS costs around $275, while the 1023 standard form costs $600.
Corporate Giving Programs
Yes, however, the nonprofit must be established as a separate legal entity with its own governing board, mission, finances, and operations. A for-profit organization cannot simply “become” a nonprofit organization or use a nonprofit organization to benefit the business financially. Many companies create a nonprofit organization or charitable foundation to support community initiatives, educational programs, or charitable causes. However, the nonprofit must operate exclusively for charitable purposes and comply with all IRS requirements for tax-exempt organizations.
What’s the difference between a nonprofit and a foundation?
A nonprofit organization is a broad term that describes organizations formed to serve charitable, educational, religious, scientific, or other public-benefit purposes. Most 501(c)(3) organizations, including food shelves, community organizations, schools, and charities, are nonprofit organizations.
A foundation is a specific type of nonprofit organization. Foundations are typically funded by a single individual, family, or corporation and primarily distribute grants to other charitable organizations rather than operating their own programs. Some foundations do run charitable organizations rather than operating their own programs. Some foundations do run charitable programs directly, but grantmaking is their primary focus.
In short:
Nonprofit: Provides charitable services or programs directly to the community.
Foundation: Usually provides funding to support the work of other nonprofits.