Exempt Organization Life Cycle

The life cycle stages established by the IRS for an exempt organization ensure that it remains compliant with federal and state regulations, maintains its tax-exempt status, and effectively fulfills its mission.

Here's a quick guide to their life cycle:

1️⃣ Starting Out: Formation of the organization and applying for tax-exempt status. This includes defining your mission, forming a board, and incorporating.

2️⃣ Applying for Exemption: Submitting the necessary forms to the IRS to obtain tax-exempt status, like Form 1023 or 1023-EZ.

3️⃣ Required Filings: Staying compliant with ongoing filing requirements like Form 990 to maintain your tax-exempt status.

4️⃣ Ongoing Compliance: Adhering to governance, fundraising, and operational best practices to meet federal and state regulations.

5️⃣ Significant Events: Handling major changes like mergers, significant financial transactions, or dissolutions properly to ensure compliance.

🌟 Staying informed and compliant is key to making a lasting impact! 🌟