The IRS requires a User Fee (application fee) of either $275 streamlined process (if annual gross revenues are anticipated to be less than $50,000 for the first 3 years of operation) or $600 full application process (if annual gross revenues exceed $50,000 per year) for all tax exempt applications. The IRS fee is not included in any of the KNPUSA package prices. You will pay this fee directly to the IRS by credit card when your application is submitted.
Important Note: Some organizations, although they technically qualify for the $275 streamlined process, should consider filing the $600 traditional long-form IRS application instead. This is particularly true for nonprofits that envision grant funding and/or corporate giving being an essential part of their revenue sources. Institutional donors analyze prospective recipient charities with great care, including the charity’s original IRS filing, which is public record. Nonprofits filing the streamlined application will not have the level of information available in the public domain as one choosing the full application and therefore your organization may be rejected for grant or other public and corporate funding sources.
Although these upfront fees can be substantial for some organizations, most of our clients recoup these expenses in a matter of weeks after receiving 501(c)(3) status through increased sponsorships, donations, and grant awards. All fees are one-time costs as there are no recurring annual fees. The above fees are subject to change. For current IRS Exempt Organization fees, please click here.