Form 1023 Part VI – Members, individuals, and organizations

This section of the form 1023 is designed to reveal information regarding your activities with members, individuals, and organizations who might receive benefits from you. In a nutshell, you should not be organized solely to benefit another organization. At the same time, you cannot just benefit individuals and members either.

For example, you are running a breast cancer organization. Your mission should be saving all the breast cancer patients you can. You cannot have an organization to fundraise and save Sally who has cancer. Sally is an individual not a class. Your organization should work with a class of people, animals, issues… put it simply, you can not start an organization for an individual or two or three and expect to be exempt from paying taxes.

Example answer:

Line 1a. In carrying out your exempt purposes, do you provide goods, services, or funds to individuals?

At the discretion of the board of directors, we may provide goods, services, or funds to individuals affected by chronic malnutrition or hunger. That will include our disaster relief aid (i.e. food and water) or educational materials (e.g. our educational publications and pamphlets).  In order to do so, we identify these individuals based on our research and referrals in the field. These individuals will be selected regardless of their religion, race, ethnicity, and age. These individuals are not known ahead of time, and specifically at the time of preparing this application.