Yippiekiyay offers two different 501(c)3 packages: Express and Enterprise, these correspond with the two paths – and two application types – the IRS uses to make the Tax-Exempt Determination.
Watch the video below as Nicole, our Formation Specialist, describes the difference between the two so you’ll know which one is right for you.
In most cases, if your organization expects total receipts under $50,000 per year in any of the first three tax years, you’ll qualify for our Express Launch Package, which uses Form IRS 1023EZ; if you plan to be over $50,000 per year then the Enterprise Launch Package, which uses the full Form 1023, is for you.
Chances are, if you have paid staff or rent a facility you’ll break above that line, but many smaller local and volunteer-run organizations remain below $50,000 in the first three years.
ALSO, PLEASE NOTE: If you are starting a Church, a School or Hospital, or hold more than $250,000 in assets, this will also require the full-length, "Long Form 1023" - which we call our Enterprise Launch Package to obtain 501(c)3 Tax-Exempt status for your nonprofit.
Many customers ask, “what if we raise more or less than that number?” Don’t worry. The IRS is relying upon an honor system here and since you are in the planning stage, there is no penalty for actual revenues or expenses being higher or lower than what you estimate – but chances are if you have any paid staff, or you rent a facility or require equipment, you’ll qualify for the higher Enterprise path.
The Enterprise process calls for more detail about your nonprofit’s activities and budget versus Express…either way our intuitive online interface means you’ll only spend an average 30 to 90 minutes to complete all of your work, and we handle it from there.
Ready to Start Your Nonprofit?
If you’re ready to start your nonprofit and you’d like everything done for you so you don’t have to worry about any paperwork and details, then check out our done-for-you 501(c)3 nonprofit service.
Or, if you you’re ready to get started, but you have a few questions, the please book a free strategy session here.
Related Articles:
How to Know Which 1023 Application Schedules are Right for Me?
Do I Qualify for the 1023-EZ for Tax-Exempt Status? Take the 2-Minute Quiz
To sum it up, the best path for you generally depends on how big you’d like your nonprofit to be.
Cheers to your mission,
Jacqui Long | InstantNonprofit
