501(c)(3) Tax Exemption

What is 501(c)(3) Tax Exemption?

When you’ve begun the process of starting a nonprofit, one of the first questions you encounter is: what is a 501(c)(3), and how can it help my organization? 

The recognition of your organization as a 501(c)(3) tax-exempt entity by the Internal Revenue Service (IRS) offers many advantages in helping your organization receive donations and establish credibility. An active 501(c)(3) status primarily allows donors to receive a tax deduction and provides grant funding eligibility for the nonprofit and potential tax exemption at both state and federal levels. 

Here at BryteBridge, we can help you gain active exempt status with the IRS, guaranteed. We are one of the nation’s top 501(c)(3) service providers, helping over 45,000 nonprofits move forward successfully. Get the help you need with your IRS 501(c)(3) application preparation from our dedicated nonprofit team.

501(c)(3) Tax Exemption Benefits

Exempt from Federal
Income Tax

for Donors

Potential State Tax

Reduced Postal

Federal Unemployment
Tax Exemptions

Tax Exempt

We Help You Obtain 501(c)(3) Tax Exempt Status With The IRS

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At BryteBridge, we help you understand what a 501(c)(3) is and offer dependable 501(c)(3) formation for nonprofit organizations at a fair price. If you need help with understanding the requirements to start a nonprofit, our professional team of experts can prepare all of the necessary documentation to secure your organization’s tax-exempt status from the IRS. 

Our services include Form 1023, Form 1023-EZ, Form 1024, Financials, Articles of Incorporation, EIN or Tax ID#, Bylaws, Charity Registration, Conflict of Interest Policy, Foreign Registrations, Fictitious Names (DBA), and State Annual Reports. We can also review your organizing documents, follow up with the IRS in response to official correspondence, and even assist with other 501(c) designations.

BryteBridge is your reliable partner when you want to know the steps needed to make your organization a 501(c)(3) tax-exempt entity. Our passion is to help your nonprofit succeed.

No Complicated IRS & State

The IRS estimates the start-up process to be 70-100 hours of work if you don’t know what you’re doing. We can complete the entire process in 10-15 days. Even Faster if you need it expedited!

Access to

Once you receive a 501(c)(3) tax-exempt status, the organization is eligible for grant funding. We provide extensive grant education through our BryteBridge Connect membership.

Guaranteed 501(c)(3)

After helping 45,000 nonprofits obtain their 501(c)(3), we confidently guarantee our work or offer a 100% refund.

Streamline your 501(c)(3) Nonprofit Formation

The 501(c)(3) tax exemption process can be extremely complex and difficult to follow. You do not want your organization to be at risk due to inexperienced volunteers or companies processing your IRS Form 1023 or IRS Form 1023-EZ. If done improperly, the processing of your 501(c)(3) status and 501(c)(3) application can be delayed for months. At BryteBridge, we work with clients nationwide, with filing expertise in all 50 states, the District of Columbia, and all U.S. territories.

Moreover, we guarantee approval of the 501(c)(3) status and work fast to get quick approval for your nonprofit organization. In some cases, we have assisted nonprofits in receiving their status in less than 30 days! Allow our skilled consultants to complete the necessary documents for your nonprofit. Count on our nonprofit solutions for all your needs. From education to implementation, we know how to fast-track your growth!

501(c)(3) Tax Exempt Requirements

To qualify as 501(c)(3) tax-exempt organization, the nonprofit must exit for one or more charitable purposes:

Price Match Promise

If you find a lower price within 30 days after purchase, provide the proof, and we will adjust your payment to the lower price or provide credit toward other services. Additionally, we will provide a $50.00 credit toward a future service of $250 or greater.

Nonprofit Pros

Working with the BryteBridge professionals, you have experts by your side. Our team has extensive experience working with nonprofits or holding board positions. Many also have formal nonprofit educational backgrounds.

Streamlined Process

We prepare and file your documents as soon as possible, incorporating them in just a few days and filing your 501(c)(3) within 10-15 days. We also offer expedited options for organizations in a hurry to move forward quickly.

We understand that this process can be difficult, and you may need assistance starting a nonprofit. Our qualified nonprofit consultants and advisors have extensive experience in nonprofit formation and can help you navigate many of the common concerns new nonprofits face, including:

  • How long does it take to receive my 501(c)(3) approval from the IRS?
  • Can I solicit the public for donations while I wait for the 501(c)(3) to be approved?
  • Can I put myself on a salary? How does that work?
  • Can my board members receive a salary?
  • What happens if I start with the 1023-EZ application for my 501(c)(3) and then make more than $50,000 in revenue?
  • What is the difference between a Private Foundation and a Public Charity?
  • Can I get a grant to start my nonprofit?
  • Can I pay myself back for this startup purchase?

BryteBridge is your one-stop resource center to start a 501(c)(3) nonprofit and keep your 501(c)(3) in compliance with the IRS and State.

501(c)(3) Start-up Pricing

You might be asking, “How much does it cost to start a 501c(c)(3) nonprofit?” BryteBridge makes starting a 501(c)(3) easy with two options. Our comprehensive 501(c)(3) services include everything you need to incorporate, obtain 501(c)(3) status, and meet initial state nonprofit operating requirements. We believe that starting your nonprofit shouldn’t break the budget and price our services accordingly. 

Check out our Price Match Promise!



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$999+Filing Fees

Pay in 4 interest-free
payments of $249.75 with

$1499+Filing Fees

Pay in 4 interest-free
payments of $374.75 with

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501(c)(3) Approval Guarantee and Price Match Promise

Name Verification

Nonprofit Incorporation or Amendments

EIN Tax ID or SS4

IRS Form 1023 or Form 1024

Conflict of Interest Policy

Bylaws Aligned to IRS Requirements

Pending 501(c)(3) Letter

Charity Registration


Nonprofit Consultation

Welcome Call

Wrap-Up Call

501(c) Approval Monitoring

501(c) Celebration Call

Nonprofit Platform and Client Portal

Additional Services

Priority Handling

Banking Resolution

Financial Budget Template

First Year Registered Agent Services*

Fundraising 101

Board Management 101

Volunteer Management 101

501(c)... Now What? Webinar

*Registered Agent Services is Free for one (1) year with Concierge services. After the first year, the Registered Agent renews at $129 annually.


$999 +Filing Fees

Pay in 4 interest-free
payments of $249.25 with


  • 501(c)(3) Approval Guarantee and Price Match Promise
  • Name Verification
  • Nonprofit Incorporation or Amendments
  • EIN Tax ID or SS4
  • IRS Form 1023 or Form 1024
  • Conflict of Interest Policy
  • Bylaws Aligned to IRS Requirements
  • Pending 501(c)(3) Letter
  • Charity Registration


  • Nonprofit Consultation
  • Welcome Call
  • Wrap-Up Call
  • Nonprofit Platform and Client Portal

Additional Services

  • Banking Resolution
  • Financial Budget Template

*Registered Agent Services is Free for one (1) year with Concierge services. After the first year, the Registered Agent renews at $129 annually.

Most Popular


$1499 +Filing Fees

Pay in 4 interest-free
payments of $374.75 with

Everything in the Essentials Plus…


  • 501(c) Approval Monitoring
  • 501(c) Celebration Call

Additional Services

  • Priority Handling
  • First Year Registered Agent Services*
  • Fundraising 101
  • Board Management 101
  • Volunteer Management 101
  • 501(c)… Now What? Webinar

*Registered Agent Services is Free for one (1) year with Concierge services. After the first year, the Registered Agent renews at $129 annually.

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After you purchase, it’s just
three easy steps!


Complete the
client intake form.


Schedule a Welcome Call with our Customer Success Team.


Relax! We will
handle the state &
IRS documentation.

Learn More About Our Features Below

We guarantee your 501(c)(3) tax-exempt status will be granted by the IRS or we give your money back. We’ve helped over 45,000 nonprofit organizations and stand behind our work. 

We complete to be submitted for exemption from federal income tax under section 501(c)(3)

Creation of your Nonprofit and articles “Charter” establishes your nonprofit in your home state.

For the full 1023 Form, the IRS requires actual or projected financial information (e.g., budget) for three years.

  • Unlimited online support through your Nonprofit Platform portal access to communicate important order updates and related questions.
  • Customer Service: 1-877-857-9002  M-F 9 am-7 pm EST.
  • Scheduled Consultations

A nonprofit consultant will help you determine your start-up readiness level and appropriate 501 application and educate you on the best BryteBridge solutions for your organization.

We provide a collection of documents to support your organization. They include:

  • Bylaws
  • Conflict of Interest Policy
  • Banking Resolution
  • Financial Projection Budget Template
  • Pending 501(c)(3) Letter

Obtain your Federal Tax Identification Number.

Most states require nonprofits to register with their Division of Charities prior to seeking donations.

Our RA services ensure you do not miss important tax or legal documents mailed to your organization.

24/7 access to your corporate & nonprofit documents, compliance status, and access annual reminders.

Start your nonprofit education with a collection of our guides. They include:

  • Board Member Giving Plan
  • Building Your Brand Identity
  • Donor Development, Life Cycle, and Recognition

We research name availability in your state, prior to incorporation, to ensure the name you want is available.

Some states require the state equivalent to IRS 501(c)(3) status to be corporate tax-exempt. California and Texas are especially complex.

With BryteBridge Connect, we automatically keep your newly formed nonprofit organization in compliance with the State and IRS.

FAQs about Starting a 501(c)(3)

Form 1023 is used to apply for exemption under IRS 501(c)(3).

Religious, charitable, scientific, testing for public safety, literary, educational, fostering amateur sports, or prevention of cruelty to children or animals.

On average the IRS takes 6-9 months from the time they receive the application package, however there are exceptions. Animal organizations tend to receive determinations quite quickly, and foreign or housing organizations may take an extended period of time. Doing it right the first time is critical, and that is where BryteBridge’s experience helps. Also, if you are in a hurry, our staff can assist with tips to help expedite the process.

Reg. l. 501(c)(3)-1(d)(2) provide that the term “charitable” is used in IRS 5Ol(c)(3) in its generally-accepted legal sense and includes relief of the poor and distressed or of the underprivileged; advancement of religion; advancement of education or science; erection or maintenance of public buildings, monuments, or works; lessening of the burdens of government; and/or promotion of social welfare.

For the IRS to approve an organization as a church, they must demonstrate that they have a set of distinct religious beliefs, a place of worship, regularly-scheduled services, and an established congregation. Lately the IRS has been requesting photographs of the church facility, the signage outside that invites the public to attend services, and the congregation at worship. In addition they have requested a list of members of the congregation, including names, addresses, and phone numbers.

Fostering Amateur Sports- Sports activity is not in and of itself an exempt activity under IRS 501(c)(3). To qualify:

  1. An organization may be educational within the meaning of IRS 501(c)(3) if it teaches sports to youth or by being affiliated with an exempt educational organization. Such educational organizations may also provide facilities and equipment.
  2. An organization that develops, promotes, and regulates a sport for youths may be charitable within the meaning of IRS 501(c)(3) as combating juvenile delinquency or lessening the burdens of government.
  3. The organization is organized and operated to foster national or international amateur sports competition and no part of its activities involve the provision of athletic facilities or equipment. (Think Olympic training).

The organizing document for the company; it states the organization’s specific purposes, incorporators, etc. The outline will vary from state to state.

Similar to Articles of Incorporation, but used for LLCs. Please note that a Nonprofit LLC is not typically permissible by the IRS.

Internal operating rules for an organization; they state who should do what, how they should do it, when they should do it, etc. This basic nonprofit template discusses board duties and elections, memberships, meetings, etc.

If your organization has been operational for 5 years or more, then actual financial information for the last 5 years is required. If the organization has been in operation 1-4 years, we must have actual financial information for the periods of operation, and projected financials to include a total of 4 years of information. If the organization is a start-up, a 3-year projection is required.

Yes. However, the fees should be for provision of services which help to achieve the exempt purpose. These fees should be reduced in comparison with a commercial entity that may offer the same service. If fees are charged for any goods or services that do not directly involve the exempt services, the revenue may be subject to unrelated business income taxes.

Reg. 1.501(c)(3)-1(b)(l)(i) provide that an organization is organized exclusively for one or more exempt purposes only if its Articles of Organization:  Limit the purposes of such organization to one or more exempt purposes; and do not expressly empower the organization to engage, other than as an insubstantial part of its activities, in activities which in themselves are not in furtherance of one or more exempt purposes. In addition, the organization’s assets must be dedicated to an exempt purpose, either by an express provision in its governing instrument or by operation of law. Reg. lRS 501(c)(3)-1(b)(4).

IRS 508(e) imposes additional requirements for governing instruments of private foundations. These are discussed in the Private Foundations Manual.

The term “articles” includes “the trust instrument, the corporate charter, the articles of association, or any other written instrument by which an organization is created.” Reg. 1.501(c)(3)-1(b)(2). The organizational test cannot be met by any document that is not the creating document.

A corporation’s bylaws cannot remedy a defect in its corporate charter. A charter can be amended only in accordance with the State’s nonprofit corporation law. States generally require that any amendments be filed with and approved by the chartering authority. In the case of a trust, operating rules cannot substitute for the trust indenture. For an unincorporated association, the test must be met by the basic creating document, whatever it is called, and any amendments. Subsidiary documents that are not amendments to the creating document may not be relied on.

The board is the governing body of the organization. In most nonprofits, the board does not participate in the daily operations of the organization. They must approve major organizational decisions, such as budget, salaries, amending articles or bylaws, etc. These individuals are there to ensure that the organization has the public’s interest at heart, and that all operations are done appropriately. Board functions must be offered on a volunteer basis. Board members may be recompensed for any out-of-pocket expenses. Sometimes, members of the board may also hold a day-to-day position in the organization. This is a separate position from that which they hold on the board. An individual who happens to be on the board may receive compensation for their daily role in the organization.

501(c) Board Requirements: You must have at least three (3) unrelated and uncompensated individuals.

Yes, however, there must always be a majority of “uninterested” individuals on the board. This means unrelated by blood, marriage, adoption, or business, and not receiving compensation for any reason.

Members of the board, award committee, or their family members should not be eligible to receive funding.

To remain in compliance, the organization must submit a Form 990 each year. This form (which comes in a variety of formats depending on the organization’s specific financial situation) must be submitted following the end of the fiscal year. Each year, the organization must file annual reports with their state to ensure that the corporation remains in good standing.

Most states require nonprofit organizations to register with the Attorney General or Department of Consumer Services before soliciting donations from the public. This ensures that all organizations requesting donations are in fact legitimate.

Not necessarily, but it is a good idea. This will prevent your organization from paying state level corporate and franchise taxes, freeing up more funds to put toward programs. In addition, sales tax exemption may be available to save you money on purchases made for the organization. The good news is the process is a lot simpler than federal tax exemption, however the state’s department of revenue may require you to first submit a copy of your IRS determination letter.

This varies by state. Some states will automatically exempt organizations that have been deemed exempt at the federal level. Other states require organizations to apply separately for state level exemptions.

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