Do we have to file anything if we did not raise any money?
Yes. Almost every exempt organization files something every year, even at zero dollars. Organizations whose gross receipts are normally 50,000 dollars or less can satisfy the requirement with the Form 990-N, an electronic postcard of eight data points: EIN, tax year, legal name and address, any other names used, the principal officer's name and address, website, confirmation that receipts are 50,000 dollars or less, and a termination statement if you are closing. It asks for no financial figures at all.
This is the question that ends organizations. In the IRS's own words, organizations that fail to file for three consecutive years "will automatically lose their tax-exempt status", and revocation takes effect on "the filing due date of the third consecutively-missed year". No warning letter arrives. No hearing happens. Most organizations find out when a grantmaker checks.
What actually happens if we already missed filings?
If you have missed fewer than three consecutive years, file what you can and keep filing. If exemption has already been revoked, getting it back means applying again - Form 1023 or 1023-EZ - and there are reinstatement procedures that can restore status retroactively. There are four paths. The streamlined one is open to organizations that were eligible to file the 990-EZ or 990-N during the missed years and have not been auto-revoked before; it requires submitting Form 1023, 1023-EZ, 1024 or 1024-A with the user fee within 15 months of the later of the revocation letter (CP-120A) date or the date the revocation was posted. Take that path and the IRS will not impose the section 6652(c) penalty for those three years. After 15 months you must show reasonable cause for all three years, not just one. Source: irs.gov, "Automatic revocation - how to have your tax-exempt status retroactively reinstated".
Two IRS files can disagree about you. The Business Master File and the Automatic Revocation List are published separately, and an organization can appear active in one and revoked in the other. If our lookup shows that, it is telling you the files disagree, not that you are revoked. Confirm on IRS Tax Exempt Organization Search.
What is the difference between Form 1023 and Form 1023-EZ?
The 1023-EZ is the short application. It is cheaper and faster, and it is largely self-attested - meaning the IRS does not read your articles of incorporation before granting exemption.
That last part matters more than the price. Because nobody checked your governing documents, defects in them survive. The most common one we see is articles that are missing the required purpose clause or dissolution clause. The organization is granted exemption anyway, and the problem stays invisible until a grantmaker or an auditor asks to read the articles.
Fees, verified against irs.gov on 10 August 2026: Form 1023 is 600, dollars Form 1023-EZ is 275 dollars. Both are paid through Pay.gov when you file. The IRS notes fees are subject to change.
Why does every funder ask for our determination letter?
It is the single document that proves the IRS recognizes your exemption. A grantmaker's finance office will not release money without it, because a grant to a non-exempt organization creates a problem for the foundation, not just for you.
If you cannot find yours, you can request a copy from the IRS. Keep a scan somewhere you can attach it to an email in under a minute.
What is 'public support' and why do people keep mentioning it?
Public charities are expected to be supported by the public rather than by one person or family. The IRS measures this with a support test computed over a rolling five-year window, reported on Schedule A of the Form 990.
New organizations get an initial period before the test is applied in a way that can change their status. In practice this means the first dispositive computation lands in year six - which is a long way off when you are starting, and arrives faster than anyone expects. Reference: irs.gov, "Advance ruling process elimination - public support test".
Do we need an audit?
Usually not because of the IRS. Audit requirements far more often come from three other places: your state's charitable solicitation law above a revenue threshold, a specific funder's grant agreement, or a federal award. Thresholds vary by state and change.
State thresholds vary and change, and we have not verified all fifty. Check your own before acting. Florida's charitable solicitation rules sit under Chapter 496.
What is an NTEE code and why does it matter so much?
It is the activity classification on your IRS record - a letter and two digits describing what your organization does. Grantmakers, research databases and funder-search tools all filter by it.
If your code is a catch-all like S99 or P20, or missing entirely, you do not appear when someone searches for organizations doing your actual work. You are not rejected. You are simply never returned. The code can be corrected in writing to the IRS.
Do we have to register with the state before asking for donations?
In most states, yes, and it is separate from anything federal. Soliciting without registering is a common and avoidable problem, and some funders check. In Florida this is administered under Chapter 496 through the Department of Agriculture and Consumer Services.
We are all volunteers. Does any of this apply to us?
All of it applies. The filing rules, the governing-document requirements and the state registration rules do not have a volunteer exemption. The good news is that at small scale most of the work is paperwork you can do yourself, and the filings are free or nearly free.