The IRS requires a User Fee (application fee) for all tax exempt applications. The User Fee is based on your organization's annual gross revenues over a 4-year period (either past or future). Gross revenues include all organizational income including, but not limited to; membership or registration fees, sponsorships, donations, admissions, concession sales, etc. This fee will be submitted directly to the IRS by check.
COMPUTING YOUR IRS USER FEE
|If your annual gross revenues are:||Then your User Fee will be:|
|Less than $10,000||$400.00 (subject to change)|
|$10,000 or greater||$850.00 (subject to change)|
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.