About

IF YOU HAVE BEEN AUTOMATICALLY REVOKED BY THE IRS FOR FAILURE TO FILE FORM 990 WE CAN HELP YOU GET YOUR STATUS BACK  

 

 What is a group exemption letter? The IRS sometimes recognizes a group of organizations as tax-exempt if they are affiliated with a central organization. This avoids the need for each of the organizations to apply for exemption individually. A group exemption letter has the same effect as an individual exemption letter except that it applies to more than one organization. What is the reason for group exemptions? Group exemptions are an administrative convenience for both the IRS and organizations with many affiliated organizations. Subordinates in a group exemption do not have to file, and the IRS does not have to process, separate applications for exemption. Consequently, subordinates do not receive individual exemption letters. What types of organizations can qualify for group exemptions? Exempt organizations that have or plan to have related organizations that are very similar to each other may apply for a group exemption. What are central and subordinate organizations? Groups of organizations with group exemption letters have a “head” or main organization, referred to as a central organization. The central organization generally supervises  many chapters, called subordinate organizations. The subordinate organizations typically have similar structures, purposes, and activities.

 

EVENTHOUGH YOU COME IN UNDER THE UMBRELLA ALL DOCUMENTS ARE IN YOUR BUSINESS NAME EVERYTHING YOU APPLY FOR WILL REGISTER UNDER YOUR EIN NUMBER

Complying with bylaws, attaining tax-exempt status, managing a board of directors… Starting a nonprofit can seem like a complicated and daunting task. However, equipped with the right information and a resilient approach, the process is easier than it seems.

 

We are Covenant Life Family Worship Center Ministry  and we have been given

GROUP EXEMPTION STATUS from the IRS. This means that there are two ways to become a 501 c 3 

 non-profit organization one is to directly apply with the IRS which may take between 4 to 6 months before you receive your official status. The other way is to become a part of an umbrella plan which means that the IRS has given power to a "PARENT COMPANY" to grant official status under their organization. This means that once you become a part of the parent company your organization can now apply for grants, sign up with your local food bank, receive tax deductible donations, partner with retail stores and receive free goods from them, partner with other non profit organizations to re-distribute goods back into the community the possibilities are endless. Once you complete the sign-up process we in most cases can issue your official certificate within 24 to 72 HOURS, that's right it's possible for you to be officially a 501 c 3 organization that fast, we have the authority, the expertise and the ability to quickly get you up and running.   

 

Below is a look at how it would be if you applied to the IRS or through one of the paid services agencies.

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Step 1. Establish a Nonprofit Corporation

This is a state-level process that establishes a nonprofit, corporate entity by the filing of Articles of Incorporation. The vast majority of nonprofits organize as corporations for a variety of reasons, including liability protection for the officers, directors and other key individuals.

Other parts of this initial process usually include obtaining a federal tax ID number (FEIN) from the IRS and the preparation of bylaws, the governance rules the board of directors must follow.

 

Step 2. Obtain IRS 501(c)(3) Status

This next step is much more complex than incorporating. To obtain 501(c)(3) status, a nonprofit corporation must apply to the Internal Revenue Service for recognition of tax exemption by filing IRS Form 1023. Relatively speaking, forming the corporation is fairly straightforward (assuming that one completely understands the process). Applying for 501(c) (3) status, however, is another story altogether.

Form 1023 itself is up to 28 pages long. With the required attachments, schedules and other materials that may be necessary, it is not uncommon for these submissions to the IRS to be up to 100 pages. Think of Form 1023 as an IRS examination. Instead of an audit of a tax return, the 501(c)(3) application process is more like an audit of proposed (and/or previous) activity. It is a thorough examination of the organization’s governing structure, purpose and planned programs. The IRS is looking to make sure that the organization is formed for exclusively 501(c)(3) purposes and that its programs are designed to fulfill these stated purposes. In addition, the IRS is looking closely for conflicts-of-interest and the potential for benefit to insiders, both possible grounds for denial.

Step 3. State Compliance Issues

While obtaining 501(c)(3) status grants your new nonprofit federal tax exemption, there are several other, critical issues that must be addressed.

1. Charitable Solicitations Registration – This is a required registration in 40 states and is usually administered through the Attorney General’s office, though not always.  Most states require registration prior to soliciting donations.

2. State Corporate Tax Exemption – Most states recognize the federal 501(c)(3) status as valid for state corporate tax exemption.  California and Texas are big exceptions, requiring its own application and review process for charity status.  Several other states require a separate application, but those are typically simpler registrations.

3. State Sales Tax Exemption – Many states grant an exemption to charities that allows them to purchase items for use by the organization without having to pay sales tax.  Applying for exemption usually requires a nonprofit to have already obtained 501(c)(3) status.

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How Can Covenant Life Family Worship Center  Help?

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Our approach is to work with you, one- on-one, helping you properly structure your nonprofit, not only for approval, but also for long-term success. And once you are approved, we provide ongoing, state and federal compliance services throughout the life of your nonprofit.  This is serious business…and we take it as seriously as you do. Our team deeply engages with you to guarantee that your 501(c)(3) will be properly structured and will be approved.  

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8 Step Process to Start a 501(C)(3) Organization

• Step 1: Get clear on your purpose

• Step 2: Decide the type of nonprofit

• Step 3: Name your nonprofit

• Step 4: Form a Board

• Step 5: write the Bylaws

• Step 6: File for your local incorporation paperwork &E.I.N 

• Step 7: File for 501(c)(3) tax-exemption

• Step 8: Ensure ongoing compliance

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Our mission is to help organizations become 501c3 approved & work with you step-by-step, our goal is to make the process smooth, easy and affordable for everyone.

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• Affordable Pricing: Our services are priced to accommodate your nonprofit’s budget while still including all necessary items for your organization.

• Professional Quality: We pride ourselves on the professional-grade quality work  and guarantee 100% satisfaction.

• Full-Service Options: We do our document preparation services in house, providing our customers with consistent professional service, quality, and quick turnaround.

• Streamlined Process: We prepare your documents in a timely manner, allowing you to receive your nonprofit services within 10-15 days after receiving all necessary documents.

• Complementing Services: We offer a variety of nonprofit services. 

• Experienced Staff: We have gained an exceptional amount of experience in document preparation due to our low-prices, allowing you to be prepared for audits, annual reporting, fund-leveraging and financial planning. We are experts when it comes to filing for nonprofits.

• Long-Term Relationship: Because we offer many services, our goal is to WIN our clients with great pricing and fanatical customer service to enable a long-term relationship.

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