Recover your 501(C)(3) Tax-Exempt status and restore or repair your reputation with your funding base and clientele.
With years of experience in the nonprofit sector, we help you meet all compliance requirements.
We handle the paperwork and procedures, saving you time and stress.
Tailored solutions to fit your organization’s unique needs.
Our proven strategies have helped numerous nonprofits stay compliant.
Initial Consultation: Fill out our intake form to provide basic information about your organization.
Document Review: We assess your compliance history and gather necessary documents.
Application Preparation: Our specialists prepare and submit the reinstatement application on your behalf.
IRS Follow-Up: We monitor the status of your application and address any issues that arise.
Reinstatement Achieved: Receive your reinstated 501(c)(3) status and get back to your mission.
Nonprofit organizations with 501(c)(3) status must file annual tax returns to maintain their tax-exempt status. Failure to file these returns for three consecutive years leads to automatic revocation by the IRS, a process known as auto-revocation. To regain their 501(c)(3) tax-exempt status, organizations must submit an updated application for exemption and pay the necessary fees.
IMPACT of Losing 501(c)3 Status
About half a million tax-exempt entities have had their 501c3 statuses revoked based on failure to file their IRS Form 990 for three consecutive years. The procedure on how to reinstate tax-exempt status is different based on the organization’s unique circumstances, including what states they are in.
no longer considered charitable.
no longer tax-deductible to the donor.
taxed and treated as a for-profit company.
penalties and unnecessary fees to be reinstated.
lose donors and potential funders.
access (or no access) to grants and funding opportunities
We Help You Follow the Best Path to Reinstate Your Nonprofit
Steps to Reinstate
Your 501(c)(3) Tax-Exempt Status
To regain your organization's tax-exempt status, you must submit a new Form 1023, pay the required filing fee, and file all overdue tax returns since the revocation. There are four methods available for reinstating a revoked 501(c)(3) status. While it may seem that you have multiple options, your choice largely depends on specific factors, including how long ago the status was revoked, the type of organization, and its revenue.
Complete the Intake Form and submit it. After submission, you will receive the option to book an appointment.
As the form indicates, The Nonprofit 501(c)(3) Reinstatement Questionnaire is specifically designed to gather information to understand your nonprofit's situation and ensure a productive initial consultation.
There are four sections you will need to fill out:
Initial Information about Your Nonprofit
Reason for Your Nonprofit's Revocation Status
Your Operational Details
Information about the Nonprofit's Representative
Optional: Secure Payment Method
Pricing
Our comprehensive 501(c)(3) reinstatement service is priced at $1499. This includes:
Comprehensive Initial Consultation
Expert guidance through the reinstatement process
Preparation and submission of all necessary documents
Follow-up and support until your status is reinstated
A deposit of $499 is required to initiate services.
During the Initial Consultation (Duration up to 45 minutes)
One of our experienced nonprofit specialists will evaluate the consequences of your organization's tax-exemption revocation at both state and federal levels.
In collaboration, we will:
Analyze and discuss your current situation.
Offer expert guidance and a strategy to regain tax-exempt status.
After the first appointment, in collaboration, we will:
Prepare and submit your 501(c)(3) reinstatement documents.
Complete and file any outstanding IRS Form 990s.
Ensure all state documents are prepared and compliant with relevant regulations.
Represent your case to the IRS and respond to any inquiries.
Resolve any remaining compliance issues.
The processing time for our services varies based on the type of service requested. At The Illuminated Solution, we strive to complete most services within 10-15 business days upon receiving all necessary documentation. However, due to the complexity of some services, processing times may extend to 30-60 days.
Please be aware that our timelines are dependent on state and federal agency requirements. Prompt submission of all requested information and completed questionnaires is essential for efficient processing, particularly for services that require extensive research and time.
For expedited processing, clients have the option to expedite most services for an additional fee.
The requirements to keep your nonprofit organization active and in good standing vary by state and local municipality. However, there are a few essential tasks that are commonly required across different jurisdictions:
Annual Report
Most states mandate that nonprofits file an annual or biennial report to maintain their standing. These reports often include updates on key information such as management and addresses. The due dates and fees for these reports differ from state to state. As part of our partnership, we provide notifications to remind you of upcoming annual reports and offer assistance with the filings to ensure your organization remains active and in good standing.
Charity Registration
Before soliciting donations, nonprofit organizations must register in most states (40 states require this). This includes soliciting donations across state lines via the internet, phone, social media, or mobile applications. For instance, if your nonprofit is based in California but solicits donors online in Nevada, it must comply with the charitable solicitation registration requirements of both states. Failure to register can lead to state investigations, fines, IRS inquiries, and reputational damage.
Taxes
Even though nonprofits with 501(c)(3) status are exempt from federal taxes, they must file IRS Tax Form 990 or Form 990-N annually. Filing this form provides the IRS with an overview of the nonprofit's activities for the past fiscal year and ensures compliance with 501(c)(3) requirements to maintain tax-exempt status.
Registered Agent
Most states require nonprofits to have a registered agent of record, also known as an "agent for service of process." This agent can be an individual or a corporation designated to receive official and legal documents, such as state compliance documents, lawsuit papers, subpoenas, and other legal notices. The registered agent ensures that the nonprofit can be easily contacted for official purposes, which is particularly important for organizations operating remotely or from residential addresses. Think of the registered agent as a safeguard to ensure that critical legal documents reach you promptly.
By adhering to these ongoing requirements, you can ensure your nonprofit remains compliant and continues to operate smoothly.
Depending on the document, you will either receive it by mail or be able to download it from our shared secure folder.
To Check for Online Availability:
Log in to our shared secure folder.
Navigate to the Digital Filing Map, then click on the document name or the relevant folder. If the document is available, a link will be provided in the Digital Filing Map.
If the document is not available in the digital filing map, you can email us at [email protected] to find out if the documents are available and you can request a copy.
If necessary, we can obtain the document from the state. Note that there may be a nominal fee from The Illuminated Solution for this service, and additional charges from the state for retrieving older or less accessible documents.
The Nonprofit 501(c)(3) Reinstatement Questionnaire is specifically for gathering information to understand your nonprofit's situation and ensure a productive initial consultation.
Initial Information
Reason for Revocation
Operational Details
Nonprofit Representative
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OPTIONAL Payment Information
During the consultation, we dive deeper into the details of the nonprofits current situation in order to get a comprehensive understanding of the nonprofit's needs and to develop a tailored plan for reinstatement.