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FAQs

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Welcome to the RightTrac Consulting FAQs page!

Explore the frequently asked questions about our business consulting services.

For unanswered inquiries, feel free to send us a message online.

  • How long does it take to receive 501c3 Application from RightTrac Consulting?

    We prepare your 501c3 Application and documentation and email it to you in PDF format (within 7 to 10 days)

  • Do you file the Articles in my State?

    We prepare your Articles and cover letter to meet all your state requirements and e-mail them to you as Adobe PDF files. You print them out and follow our simple and specific instructions.

  • Are there any other names for the Articles of Incorporation?

    Certificate of Formation, Certificate of Incorporation, Articles of Organization, Articles of Agreement, Articles of Association, or Charter.

  • How much is the User Fee?

    One-time IRS Application user fee for Form 1023 is $600.
    One-time IRS Application user fee for Form 1023 EZ is $275.

  • When and how do I mail off my 501c3 1023 Application?

    We prepare your 501c3 Application along with your required documents or attachments, etc., and email it to you in PDF format (within in 7 to 10 days) with specific instructions for putting the documentation together and sending your 501c3 application to the IRS.

  • When is the questioner due?

    Questioner is due within 48 hours after Full or Initial purchase, if there is a delay on receiving questioner after 48 hours, there will be a day added to your completion of your 501c3 Application Process

  • What is RightTrac Consulting fee to prepare a 501c3 Application 1023?

    There are three packages. Basic is $350, Plus is $400, and Premium is $500. These fees don’t include User Fee

  • What is RightTrac Consulting fee to prepare a 501c3 Application Form 1023 EZ?

    $300. This fee don’t include the user fee.

  • 501c3 Application Form 1023?

    Form 1023 is the standard form used to apply for exemption under IRC 501(c)(3). Some small organizations may be eligible to use the streamlined application, form 1023-EZ.

  • What types of organizations will qualify for 501(c)(3) tax exempt status?

    Religious, Charitable, Scientific, Testing for public safety, Literary, Educational, Fostering Amateur Sports, and Prevention of cruelty to children or animals.

  • Is it required to use a company to complete the paperwork?

    No, it is not required but there are many advantages such as faster approval, getting it right the first time. avoid the extra cost of amendments.

  • What does the Board of Directors do?

    The Board is the governing body of the organization. In most nonprofits the board does not participate in the daily operations of the organization. They must approve major organizational decisions, such as budget, salaries, amending articles or bylaws, etc. These individuals are there to ensure that the organization has the public’s interest at heart, and that all operations are done appropriately. Board functions must be offered on a volunteer basis. Board members may, however, be compensated for any out of pocket expenses. Sometimes, members of the board may also hold a day to day position in the organization. This is a separate position from that which they hold on the board. An individual who happens to be on the board may receive compensation for their daily role in the organization.

  • How many people do I need on my Board?

    501 Board Requirements: Must have at least 3 individuals, the majority of which are not related or receiving any compensation.

  • What is Charitable Organization Registration?

    Most states require nonprofit organizations to register with the Attorney General or Department of Consumer Services before soliciting donations from the public. This ensures that all organizations requesting donations are in fact legitimate.

  • If my 501(c)(3) is approved do I still have to pay state income tax and sales tax?

    This varies by state. Some states will automatically exempt organizations that have been deemed exempt at the federal level. Other states require organizations to apply separately for state level exemptions.

  • What is a 501c3?

    501(c)(3) is a corporation organized exclusively for charitable, religious, educational and scientific purposes, including for such purposes, the making of distributions to organizations that qualify as an exempt organization under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code.

  • What is a 1023 EZ?

    501(c)(3) is a corporation organized exclusively for charitable, religious, educational and scientific purposes, including for such purposes, the making of distributions to organizations that qualify as an exempt organization under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code.

    Only organizations with a revenue and/or expense of less than $50K per year can apply for a 1023 EZ Application.

    Not all types of organizations can qualify for the EZ application. Churches, hospitals, schools, housing providers, and foundations are some organizations that cannot qualify for EZ.

  • How to Find Out if Your Nonprofit Already Has Its 501c3?

    Go to http://www.irs.gov and select “Charities and Nonprofits” and then “Search for Charities.” If you don’t find your nonprofit’s name on the list, it does not necessarily mean that it does not have its 501c3. You can also Call the IRS Customer Service for nonprofit organizations at 1-877-829-5500 and give them your corporate name (and EIN if you have it). The best time to call them is about 8:35 a.m. Eastern Time.

  • If you have lost your determination letter or need a copy.

    Call the IRS Customer Service for nonprofit organizations at 1-877-829-5500 and give them your corporate name (and EIN if you have it).

  • How long does it take the IRS to review the Form 1023-EZ?

    In general, you can expect the IRS to review your IRS Form 1023-EZ in approximately 1-3 months. If you haven’t heard from the IRS within 90 days of submission, you may contact them proactively by calling 877-829-5500

  • How do I file Form 1023-EZ?

    To file Form 1023-EZ, you must first create an account at www.pay.gov. Once you have registered with Pay.gov, you will be able to create and save a draft of the Form 1023-EZ which you may then submit electronically through the Pay.gov website after paying the user fee.

  • What if I submit Form 1023-EZ but then, in year 2 or 3, I receive a significant grant that outs my organization above the $50,000 filing threshold?

    It is possible that the IRS will notice the change in revenues (as illustrated in your annual Form 990) and will ask you to pay an additional fee to equal the user fee required for the full Form 1023, which is currently $600. It is also possible that the IRS will want the organization to complete a full Form 1023 retroactively.

  • Do I have to submit Bylaws and Articles of Incorporation with the new Form 1023-EZ?

    No. Unlike the full IRS Form 1023, you do not have to submit any attachments with the Form 1023-EZ. However, you do have to attest, under penalties of perjury, that your organization has the proper organizing documents and that those documents contain the necessary provisions required to obtain federal tax-exempt status under Internal Revenue Code Section 501(c)(3).

  • What filings are required each year once I’m approved?

    To remain in compliance the organization must submit a form 990 each year. This form (which comes in a variety of formats depending on the organization’s specific financial situation) must be submitted by the 15th day of the 5th month following the end of the fiscal year. In addition, a variety of annual filings may be required by your state.

  • What types of financials are necessary for the standard application?

    If your organization has been operational for 5 years or more, then actual financial information for the last 5 years is required. If the organization has been in operation for less than 4 years, then we must have the actual financial information for the periods of operation, and projected financials to include a total of 4 years of information. For a start-up organization, a 3 year financial projection is required.

  • Can the 1023 application be filed online?

    The new Form 1023-EZ is available for filing only online via Pay.gov; the standard application must be filed in hard copy via mail.