IRS Tax Exemption for 501(a) Organizations with Form 1024

Confused about whether to use IRS Form 1024 or IRS Form 1023?  Let us help you sort some things out.  If you’re running a charity and are applying for tax-exempt status, you might use IRS Form 1023. However, if your type of organization doesn’t fall under the 501(c)(3) category, then you need to use a different form to apply for exemption: namely, Form 1024.

IRS Form 1024 allows you to apply for exemption status under Section 501(a), instead of the most common type, 501(c)(3). Form 1024 effectively provides proof to the IRS that your 501(a) organization can be exempt from tax. Primary indicators of a 501(a) organization include: the express purpose to promote the welfare of a certain group of people, who are also its members; the ability to lobby for political candidates and elections; funding from public sources like governments and individuals; and the ability to incorporate as a partnership.

Form 1024 sometimes also applies to some types of 501(c) organizations. In addition to the usual Form 990 or 990EZ (the tax return for tax-exempt nonprofits), these organizations can use a 1024 to receive a “designation letter” from the IRS about their exempt status. This letter can reassure donors that donated funds to the organization are tax-deductible.  The types of 501(c) categories that use a 1024 include: 501(c)2, 501(c)4, 501(c)5, 501(c)6, 501(c)7, 501(c)8, 501(c)9, 501(c)10, 501(c)12, 501(c)13, 501(c)15, 501(c)17, 501(c)19, and 501(c)25.

Does your organization need to fill out a Form 1024 to apply for tax exempt status? Click here to get started with the latest Form 1024 and finish your charitable organization’s tax filing in no time at all. PDFfiller’s forms database has all the non-profit forms you’ll need this tax season, including Form 990 and 990EZ, Form 990 Schedule A, Form 990 PF, and Form 1023.