Instructions for Form 1023 Part VII – Your organization’s history

Are you a successor to another organization? Answer “Yes,” if you have taken or will take over the Yes No activities of another organization; you took over 25% or more of the fair market value of the net assets of another organization; or you were established upon the conversion of an organization from for-profit to nonprofit status. If “Yes,” complete Schedule G.

At the start of these articles, I made it very clear that this website does not deal with those who have dipped their toes in the for-profit sector before going nonprofit. I will not provide advice to this class based on personal preference.

In general, an organization has 27 months after its formation to apply for tax exemption status. If you have missed a giant 2 and ¼ years window, you should have a damn good explanation, and you should seek professional help.

If you are a nonprofit (not a successor to a for-profit entity) which is unlikely, and not claiming exemption for prior periods, you can just apply normally and all is good.