Form 1023 is made up of eleven parts (I–XI) that you must fill out and supply the supplementary information requested.

Form 1023 Parts

• Part I. Identification of Applicant: This part is self-explanatory. It asks for basic information about your nonprofit; fill in the organization's name, mailing address, Employer Identification Number, and other relevant information.

• Part II. Organizational Structure: Here you identify how your organization is set up (corporation, limited liability company, unincorporated association, or trust) and provide supporting documents.

• Part III. Required Provisions in Your Organizing Document: When you wrote the articles of incorporation (see Chapter 5), you (hopefully) included two specific clauses to comply with IRS requirements. You will need to refer to those clauses that (1) define the purpose of your nonprofit, and (2) outline what happens to excess funds (those remaining after all the bills are paid) when the organization closes.

• Part IV. Narrative Description of Your Activities: Here you write a description of your organization's activities.

• Part V. Compensation and Other Financial Arrangements with Your Officers, Directors, Trustees, Employees, and Independent Contractors: If you are paying anyone for services directly related to the operation of your organization, identify them here and give details of their compensation.

• Part VI. Your Members and Other Individuals and Organizations That Receive Benefits from You: This part contains a series of three yes or no questions.

• Part VII. Your History: There are two yes or no questions in this part.

• Part VIII. Your Specific Activities: This series of questions asks you to go into detail about how your nonprofit operates.

• Part IX. Financial Data: This chart asks you to outline your finances for the current tax year and the three previous years. If your nonprofit was formed within that time frame, you must make good-faith estimates regarding your future budget.

• Part X. Public Charity Status: This part defines your nonprofit as a private foundation or a public charity.

• Part XI. User Fee Information: This section determines your fee for submitting Form 1023.

In addition, there are eight schedules. You will only have to complete the one(s) that apply to your nonprofit.

Schedules

• Schedule A. Churches

• Schedule B. Schools, Colleges, and Universities

• Schedule C. Hospitals and Medical Research Organizations

• Schedule D. Section 509(a)(3) Supporting Organizations

• Schedule E. Organizations Not Filing Form 1023 Within 27 Months of Formation

• Schedule F. Homes for the Elderly or Handicapped and Low-Income Housing

• Schedule G. Successors to Other Organizations

• Schedule H. Organizations Providing Scholarships, Fellowships, Educational Loans, or Other Educational Grants to Individuals and Private Foundations Requesting Advance Approval of Individual Grant Procedures

Form 1023 is lengthy, but most of it is self-explanatory. The sections that need more explanation will be explored in this chapter.