General Instructions

Social Security number. Don't enter social security numbers on this form or any attachments because the IRS is required to disclose approved exemption applications and information returns. Documents subject to disclosure include supporting information filed with the form and correspondence with the IRS related to the application.

“You” and “us.” Throughout these instructions and Form 1023, the terms “you” and “your” refer to the organization that is applying for tax-exempt status. The terms “us” and “we” refer to the IRS.

Definitions. Terms in bold type in Form 1023 are defined throughout these instructions and in Appendix C .

• Organizations that support other public charities (supporting organizations) (section 509(a)(3)).

• Organizations that test for public safety (section 509(a)(4)).

• Ensure its assets and earnings don’t unjustly enrich board members, officers, key management employees, or other insiders;

• Not further non-exempt purposes (such as purposes that benefit private interests) more than insubstantially;

Private foundations. Section 501(c)(3) organizations that don’t fit into any of the foundation classifications above are private foundations. Private foundations are further classified as nonoperating private foundations or private operating foundations (section 4942(j)(3)).

Nonoperating private foundations. Nonoperating private foundations generally accomplish their exempt purpose by making grants and don’t otherwise engage directly in charitable activities.

• Not operate for the primary purpose of conducting a trade or business that isn’t related to its exempt purpose(s);

• Not engage in activities that are illegal or violate fundamental public policy; and

• Limit its legislative activities.

2 Instructions for Form 1023