Executive summary: The author outlines how to establish a U.S. 501(c)(3) nonprofit in about 40 days if a funder requires tax-exempt status urgently, explaining each step, common pitfalls, and success probabilities based on personal experience.
Key points:
Achieving 501(c)(3) status in around 40 days requires a donor whose grant is contingent on expedited IRS approval; otherwise, the process typically takes 8–10 months.
Incorporation can be completed within 1–2 days, ideally in Delaware, followed by obtaining an address and an EIN directly from the IRS website to save weeks.
The IRS treats organizations as 501(c)(3)s retroactively within 27 months, allowing them to open bank accounts, run payroll, and receive grants before formal approval.
Filing Form 1023 with an expedite request is crucial; the author estimates a 60% chance of getting approval within the requested window and a 95%+ chance of some acceleration.
Faxing the expedite request and calling the IRS afterward increases the likelihood of prompt review.
Operational setup—including bank accounts, payroll (via a PEO like Justworks), and accounting (e.g., QuickBooks through TechSoup)—can proceed while waiting for IRS approval.
Once status is granted, organizations should secure insurance and convene an initial board meeting to formalize governance.
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Executive summary: The author outlines how to establish a U.S. 501(c)(3) nonprofit in about 40 days if a funder requires tax-exempt status urgently, explaining each step, common pitfalls, and success probabilities based on personal experience.
Key points:
Achieving 501(c)(3) status in around 40 days requires a donor whose grant is contingent on expedited IRS approval; otherwise, the process typically takes 8–10 months.
Incorporation can be completed within 1–2 days, ideally in Delaware, followed by obtaining an address and an EIN directly from the IRS website to save weeks.
The IRS treats organizations as 501(c)(3)s retroactively within 27 months, allowing them to open bank accounts, run payroll, and receive grants before formal approval.
Filing Form 1023 with an expedite request is crucial; the author estimates a 60% chance of getting approval within the requested window and a 95%+ chance of some acceleration.
Faxing the expedite request and calling the IRS afterward increases the likelihood of prompt review.
Operational setup—including bank accounts, payroll (via a PEO like Justworks), and accounting (e.g., QuickBooks through TechSoup)—can proceed while waiting for IRS approval.
Once status is granted, organizations should secure insurance and convene an initial board meeting to formalize governance.
This comment was auto-generated by the EA Forum Team. Feel free to point out issues with this summary by replying to the comment, and contact us if you have feedback.