Form 1023 Paperwork, In Millions of Hours, 1986 to 2016

Source: U.S. Office of Management and Budget. Click image to learn more.

​​​​​​​​​​​Real Help With Your 501(c)(3) Application


​​​​​www.501c3Book.com


Form 1023 - Part VIII

<<<Back to 1023 - Part VII                                    Return to www.Form1023Help.com                                Forward to  1023 - Part IX >>>​​​


...anticipating all

sorts of questions...


Buy Now

Page 5 - Part VIII - Specific Activities


​Page 5 - Part VIII - Question 1 - Political
When the IRS uses the term "political" here, they specifically mean support of, or opposition to, a candidate for public office. This is an activity that is strictly prohibited for 501(c)(3) organizations.  More information about
political activity.

Page 5 - Part VIII - Question 2 - Lobbying
While supporting or opposing individuals who are seeking public office is political activity, prohibited under 501(c)(3), supporting or opposing legislation is permitted in limited amounts. Federal tax law has two options for lobbying 501(c)(3) organizations. Filing an election to be treated as a lobbying 501(c)(3) alerts the IRS to the fact that your group might be lobbying, but in return your organization is subject to more generous lobbying limits. If your group does not make the election (or is ineligible to make the election), it is only allowed "insubstantial" amounts of legislative activity. For additional information on lobbying, see the discussion of lobbying in the section of this website called Keep the IRS Happy.  More about lobbying.


The Lobbying Handbook topic in Prepare Your Own 501(c)(3) Application includes a safe harbor worksheet. 


Page 5 - Part VIII - Question 3 - Gaming
Bingo games are not subject to unrelated business income tax, but other gaming activities may be.  The IRS has noted a number of abuses in this area.  More information on
unrelated business income.   

Page 5 - Part VIII - Question 4 - Fundraising
These questions are designed to uncover a number of abuses that the IRS has noted in fundraising.

Page 6 - Part VIII - Question 5 - Government-affiliated
Government-affiliated organizations are outside the scope of this website. If you are planning to engage in this type of activity, you should seek professional help in preparing your 501(c)(3) application.

Page 6 - Part VIII - Question 6 - Economic Development
Economic Development organizations are outside the scope of this website. If you are planning to engage in this type of activity, you should seek professional help in preparing your 501(c)(3) application.  
"Missing" Economic Development Ruling.

Page 6 - Part VIII - Question 7 - Development
These types of organizations are outside the scope of this website. If you are planning to engage in this type of activity, you should seek professional help in preparing your 501(c)(3) application.  

Page 6 - Part VIII - Question 8 - Joint Ventures
Joint Ventures are outside the scope of this website. If you are planning to engage in this type of activity, you should seek 
professional help in preparing your 501(c)(3) application.


This website has only a fraction of the information you can find in Prepare Your Own 501(c)(3) Application.


Page 6 - Part VIII - Question 9 - Child Care
Child Care organizations are outside the scope of this website. If you are planning to engage in this type of activity, you should seek professional help in preparing your 501(c)(3) application.

Page 6 - Part VIII - Question 10 - Intellectual Property
These issues are outside the scope of this website. If you are planning to engage in this type of activity, you should seek 
professional help in preparing your 501(c)(3) application.

Page 7 - Part VIII - Question 11 - Conservation Easements, etc.
These issues are outside the scope of this website. If you are planning to engage in this type of activity, you should seek 
professional help in preparing your 501(c)(3) application.

Page 7 - Part VIII - Question 12 - Foreign Operations
Activities that are charitable within the meaning of section 501(c)(3) when carried on within the United States also qualify for 
exempt status under 501(c)(3) when carried on in foreign countries.  
Revenue Ruling 71-460.  


Page 7 - Part VIII - Question 13 - Grants, Loans, etc.
Many 501(c)(3) organizations contribute money to other charitable, educational, or similar organizations, rather than engaging in direct charitable activities themselves. Because 501(c)(3) requires an organization to dedicate its assets to charitable purposes, most grant-making charities will only make grants to other 501(c)(3) organizations. But Federal tax law does permit 501(c)(3)s to make grants to non 501(c)(3) organizations, as long as the charitable organization retains control over the use of the funds and maintains records showing that the funds are used for exclusively charitable purposes.  Revenue Ruling
68-489.


Prepare Your Own 501(c)(3) Application has a Handbook topic and a sample board resolution on foreign activities.


Page 7 - Part VIII - Question 14 - Grants, Loans, etc. to Foreign Organizations
The IRS will generally deny a 501(c)(3) application from a group formed to support a named charity in another country. If your group makes grants to foreign charitable organizations, you will have to show the IRS that your organization is not controlled by, or otherwise obligated to transfer donations to, any foreign entity. Since 2001, the entire question of grants to foreign charitable organizations has been further complicated by fears that money sent to foreign charities may end up in the hands of terrorists.  
This website has the text of four IRS Revenue Rulings about foreign activities that cannot be found on irs.gov: 63-252, 66-79, 66-177, and 75-65.

Page 7 - Part VIII - Question 15 - Connections with Other Organizations
This question appears to be designed to uncover areas of perceived abuse. Close connections with other 501(c)(3) organizations should not cause problems, but close connections with for-profit entities, or with organizations that are tax exempt under a paragraph of 501(c) other than 501(c)(3), could. The IRS may also be checking to see if your response to this question is consistent with answers to Part VII or Part VIII, Questions 4b, 4c, or 8, and others.

Page 8 - Part VIII - Question 16 - Cooperative Hospital Service Organizations
Cooperative Hospital Service Organizations are outside the scope of this website. If you are planning to engage in this type of 
activity, you should seek professional help in preparing your 501(c)(3) application.

Page 8 - Part VIII - Question 17 - Cooperative Service Organizations of Operating Educational Organizations
Cooperative Service Organizations of Operating Educational Organizations are outside the scope of this website. If you are planning to engage in this type of activity, you should seek professional help in preparing your 501(c)(3) application.

Page 8 - Part VIII - Question 18 - Charitable Risk Pools
Charitable Risk Pools are outside the scope of this website. If you are planning to engage in this type of activity, you should seek professional help in preparing your 501(c)(3) application.


Page 8 - Part VIII - Question 19 - Schools
Schools are outside the scope of this website. If you are planning to engage in this type of activity, you should seek professional help in preparing your 501(c)(3) application.

Page 8 - Part VIII - Question 20 - Hospitals
Hospitals are outside the scope of this website. If you are planning to engage in this type of activity, you should seek professional help in preparing your 501(c)(3) application.

Page 8 - Part VIII - Question 21 - Housing
Housing activities are outside the scope of this website. If you are planning to engage in this type of activity, you should seek 
professional help in preparing your 501(c)(3) application.


Prepare Your Own 501(c)(3) Application has a sample scholarship application.


Page 8 - Part VIII - Question 22 - Scholarships
Scholarships are outside the scope of this website. If you are planning to engage in this type of activity, you should seek 
professional help in preparing your 501(c)(3) application.


<<<Back to 1023 - Part VII                                           Return to www.Form1023Help.com                                      Forward to  1023 - Part IX >>>​​​

Prepare Your Own 501(c)(3) Application

By Sandy Deja © 2016 400 pages ISBN 978-0-9815280-9-0

$54.95




Money Back Guarantee
(available in pdf as well; send email request)