Application for Recognition of Exemption Under Section 501(a)

Department of the 'Treasury
Internal Revenue Service

lnstructions for Form 1024
(Rev. September 1998)
Application for Recognition of Exemption Under
Section 501 (a)
Note: Keep a copy of Ihe completed Form
7024 in the organiratron's permanent records.

General lnstructions
Sectloo references are to the Intern31
Revenue Code unless otherwise noted.
User fee.-Subm~t w~ththe Form 1024
appl~cat~on
for a determ~nat~on
letter, a
Form 8718, User Fee lor Exempt Organizallon
Detcrrn~nat~on
Letter Request, and the user fee
callea for in the Form 8718 You may obtaln
Form 8718, and addihonal forms and
publ~cations.through your local IRS oRce or by
calling 1 -800-829-3676
{I-800-TAX-FORM).
User fees are subJect to change on an annual
bass. Therefore be sure that you use the most
current Form 8718
Helpful informatiom-For additional
~nforrnation,ser
Pub. 557, Tax-Exempt Status for Your
Organization
Pub. 598. Tax on Unrelaled Business
Income of Exempt Organizations
Pub. 578. Tax Information for Private
Foundations and Foundation Managers
Internet site:
www.irs.ustreasgovlbus-infoleol

Purpose of Form
Form 1024 is used by most types of
organizations to apply for recognition of
exemption under scclion 501(a). See Part I of
the appl~cation.
Even if these organizations are not required
to file Form 1024 to be tax-exempt, they may
wish to 6k Form 1024 to receive a
determlnatan letter of IRS recognltion of their
sectton 501(c) Ftatus in order to obtain certain
lncrdental benefit? such as:
Public recognition of lax-exempt status
a Exemption from ccrtaln state taxes
Advance assurance to donor5 of
ded~~cllbilily
of contr~butions(in certain cases)
Nonprotlr mailing privileges, etc.
Note: GcnwaNy, Form 7024 IS NOT used to
apply for a group exemptton letter For
mdormation on how to appry for a group
exemption lettcr. see Fub. 557.
Note: Tax benefirs for certarn homeowners
associatior~sunder section 528 are av.arlable
to organtzarion5 tMJr are not exempt from
Fpdrrdl Income fax. To elect these berlefits.
l!/e a properly comnpkted and timely filed
!~nrrurlmgextensronsl Form 7120-H,U.S.
I r ~ o r nTax
~ Return for Homeowners
Assocrations. DO NOT file Form 7024.

What To File
Do not 5ubnl1tany blank schedules that do

no1 apply

to

your type of organlzatlm

Most organizations applying lor exempuon
undw section 501 (a) must complete Parts 1
through Ill.
Section 501 (c)(9). Voluntary Employees'
Beneficrary AS50ClatlOnS, and section
501(c)(17), Supplemental Unemployment
Benefit Trusts. applicants should also
complere Part IV.
See Special Rule for Certain Canadian
Organizations on the following page
In addition, each organization must
complete the schedule indicated on page 1 of
the application for the section of the Code
undw which i t seeks. recognition of
exemption (For example, a social welfare
organizatlon seeking recognltion under
sectlon 501(c)(4) must complete Parts I
through Ill and Schedule B.)

Attachments
Fw any attachments submitted with Fwm
1024.8 Show the organiration's name, address.
and employer identification number (EIN)
Identify the Part and line llem number to

which the attachment relates.
Use 8-112 x 1 1 inch paper for any
attachments
Include any court decisions, rulings,
opinions, etc . that wit1 expedite processing of
the appicat~onGenerally, attachma~tsIn the
form of t a p recordings are not acceptable
unless accompanied by a transcript.

When To File {Section 501(c)(9)
or (17) Organization)
An organizatlon must file Form 1024 to he
recognized as an organization descr~bed~n
section 501(c)(9) or 501(c)(l 7) Generally, 11an
organlzatlon files its appllcatron w~thin15
months aftcr the end of the month In whtch ~t
was formed. and i f the IRS approves the
appllcatlon, the eflecl've date of the
organ1zat1on'55ect1on501[c)(9) or (1 7 ) status
will be the datr ~twa> organ~zed
Generally. IIan organization does not f~leits
appl~calron(Form 1024) within 15 m n t h s
altc: rhe end of the monlh m which it was
tormcd. it will not qualbly for exempt status as
a sectlon 501(c)(9)or (1 7) organ~zationduring
the period before the datc of115apptication.
For exceptlorns and special rules, including
automatic exrensrons in some cases, see Pan
IV of Form 1014
The d.ltr cll rrieipt 1s tlle date of rhe 11.5.
postmark on the cover In whlch an exemptlon
applrcatlurl IS mailed or. i f no postmark
appears on the cover. t h date
~
the
appl~catlonIS stamped a5 received by the
IRS
Private delivery services.-See the
inStrucI~or~s
for your incomc tax return for

Cat. No. 4790%

informallon on certain private dellvery
services designated by the LRS to meet the
"timely malling as timely filinglpaying rule."
The private delivery service can tell you
how to get written prwf of Ihe mailing date.
Caution: Private deltvery sentices cannot
deliver items to P 0 boxes. You must use the
U.S Postal Service to mail any item to an
IRS P.0,b o x address. See rhe Form 8718 for
the P . 0 box address as well as the express
mat/ or a delivery service address

Where To File
File the completed Form 1024 applrcation,
and all required information, at the address
shown in Form 871 8.
The 1RS will determine the organizat~an's
tax-exempt status and whether any annual
returns must be filed.

Signature Requirements
An offbzer, a trustee who is authorized to sign.
or another person authorized by a power of
attorney, musr sign the Fwm 1024
application. Attach a power of altorney to the
application. You may use Form 2848. Power
of Attorney and k l a r a t i o n of
Representative, for this purpose.

Appeal Procedures
Your organization's application will be
considered by the IRS which will either
1. lsslie a ravorable determination ktter;
2. Issue a proposed adverse determination
letter der~yingthe exempt status requested:
OT

3. Refer the case to the National Office.
If we send your organization a ptoposed
adverse determ~narion.we will advise II 01 11s
appeal rights at that ame.

Language and Currency
Requirements
Language requirements.-Prepare the Form
1024 and attachments in EngllSh. Provide an
English translation if the organizational
document or bylaws are in any other
language. See the conformed copy
requirements in the line 8 instruct~onsunder
Part I
You may be asked to prov~deEnglish
translations of foreign language publicat~ons
that the organization produces or distrlbuteb
and that are wbmitted with ttw application
Financial requirements.-Report all financ~vl
in for ma ti or^ In U.S, dollars (specify the
convttr5lorl rate used). Comb~nealnounts
frcin with~nand outside the IJnltcd States and
rcport the total for each item or1 the financial
statements.

For example:
Gross Investment Income
From U.S, sources
From non-U.S. sources
Amount to repon on lncome
statement

$4,000

1.000

$5,000

Annual Information Return
I1 an an~?ual
Information return is due while
the organization's application for recoqnirion
of exempt rtatus is pending with the IRS
(~ncludlngany appeal of a proposed adverw
deterrn~natjon),the organization should file:
Form 990. Return of Organization Exempt
From Income Tax, or Form 990-EZ.Short
Form Return 01 Organization Exempt From
lncome Tax, at the followir?gaddress: Internal
Revenue Setvlce. Ogden Service Center,
Ogden. UT 84201 -0027
Indicate that an applicat~onis pending.
If an organrzatlon has unrelated business
income of more than $1,000.file Fwrn 990-T,
Exempt Organization Buslness lncome Tax
Return
Applicants under sections 501(c)(5). (9). and
(1 7) should see the Form 990 (or Form
990-€2)
instructions for special pronsions
regarding substitutions for certain pans of
that form.

Public Inspection of Form 1024
Caution: Note rhe drscussion below for the
potential effect of the Taxpayer Bill of Rights
2 CTBOR2Jon these instructions.
IRS responsibilities for public insption.If the organ~zat~on's
application for section
50l{ci status is approved, the following items
will be open to public inspection in any
Dtstrict office and at the Nat~onalOffice of the
IRS (section 6104):
1. The organization's appl~cat~on
and any
supporting documents.
2. Any letter or other document issued by
the IRS with regard to the application.
Note that the following items are not
available for publ~c~nspection:
1. Any ~nlormat~on
relating to a trade
secrel. patent, style of work, or apparatus
that. ~f released. would adversely affect the
organization, or
2. Any other lnforrnation that would
adversely affect the national defense.
IMPORTANT: Applicants must identify this
~nformattonby clearly marking it. "NOT
SUBJECT TO PUBLIC INSPECT!ON." and
must attach a statement to explatn why the
organization asks thal the mformation be
withheld, If the IRS agrees. the ~nrormation
will be withheld
Organization's responsibilities for public
inspect~on.-The organization must make
avallablr a copy of its approved appticat~on
and supporong documents, along wlth any
doc~rmentar letter tssued by the IRS, lor
publ~cIn\pcctlon.
These documents must be available aurlng
regular busine55 hours at the organizanon's
principal office and 31 each of its regtonal or
district offices hav~ngat lrast Wree paid
crnployees See Not~ce88-120. 1988-2 C.B.
454.
A penalty of $20 a day wilt be imposed on
any person undcr a duty to comply with the
public IrlspectlfJn requlrernenrs for each day a
Ia~lurelo comply contlnucs

Furnishing copies of documents under
TBOR2.-The Taxpayer 8111of Riyt~ts2
(TBORZ), enacted July 30. 1996 rnod~fled
prospectively the scct~on6685 penalty and
the ruleL.for the pubhc Inspection of returns
and exempilon zpplicat~onsAn organlzatlon
must furn~sha 'opy of ~ t sForm 990. Form
990-EZ. cr cwcrnptlon appl~cat~on,
and cenaln
related a ~ u r ~ ~ e n~fras request
,
is made In
wrltlng Or m persorl
For a request made in person, the
organization must make an immediate
response.
For a response to a wrlrteti requesr. the
organization must provlde the rcqueSted
copies within 30 days
The organization must furnish copbcs of tts
Forms 990, or Forms 990-€2.
far any of its 3
most recent taxable years. No charge is to be
made other than charglng a reasonable lee
for reproduction and actual postage cons
An organization need not provide coples 11.
1. The organization has made the
requested documents widely available in a
manner provided in Treasury regulations, or
2. The Secretary of the ~ r e a s u r ~
determined, upon application by the
organization, that the organ~zationwas
subject to a harassment campaign such that
a waiver of the obligation to prov~decopies
would be in the publ~cinterest
Penalty for failure to allow public
inspection or provide copies.-The section
6685 penalty for willful failure to allow public
inspect~onsor provide copies is increased
from the present-law level of $1,000 to
$5,003 by TSOR2.
Effective date of TBOR2.-These publ~c
inspect~onprovisions governing tax-exempt
organizations under TBORZ generally apply to
requests made no earlier than 60 days after
the date on which Ihe Treasury Department
publishes the regulations required under the
provisions. However. Congress, in the
legislative history of 1 8 0 R 2 , Indicated that
organizations would comply voluntarily with
the public inspection provisions prior to the
issuance of such regulatiorls

Special Rule for Certain
~ a n a d i a nOrganizations
A religious, scientific, literary, educat~onal.or
charitable organization formed In Canada that
has rece~veda Form T2051, Not~ficatlonof
Reglslration, from Revenue Canada
(Department of National Revenue, Taxat~ori)
and whose registration has not been revoked
may apply lor recognition of exemption as a
social welfare o~ganrzationunder section
501(c)(4)wlthout completing all pans of Form
1024 that would othcrw~sebe requtred. Such
an organization must complete only Part 1 and
the signarure porrlorl of Form 1024.
To ~ndicatethat th~sspecial rule applies.
the organization should write "Registered
Canadian Organization" across tlie top of
page 1 of Form 1024
The organ~zationmust also attach a cupy
of irs current Form T2051 and a copy of
Appl~cationfor Registration. Form T2050,
together with all required artichrnenr5 that it
subm~riedlo Revenue Canada.
If any of the allachmcnts to Form T2050
were prepalpd :n French, an English
transtallon mu-4 t r r : furnished with Forrn 1024

In the case of nrganrz~ngdocuments and
bylaws, see the l~neB lnstructlons under
Part I
An organizalron that wants recognition of
cncmptlon under secrbon 501(c)(3) must
complele Form 1023, Application for
Recngnrtlon of Exemption Under Section
501Ic113) of the internal Revenue cod^
Exempt~onunder section 501 (c)(3)is
needed to establish eligibility to recelve
corlrriburions that are deductible by U 5
residents to the extent provided by the U 5
Canada tax treaty.

-

Specific Instructions
The following instrucfions are keyed to the
I~neitems on the appl~cat~on
form:

Part I. Identification of
Applicant
Line 7. Full name and address of
organization.-Enter the organizalion's name
exactly as it appears in its creatlng
documents, including amendments. 1the
organization will be operating under another
name. show the other name in parentheses.
For a foreign address, enter the lnfornlarion
in the follow~ngorder: city, province or state.
and country Follow the country's practice in
placing the postal code in the address. Do
not abbreviale the county name.
Line 2. Employer identification number
(€IN).-Ail organizat~onsmust have an EIN.
Enter the nine-digit €It4 the IRS assigned to
the organization. See Form SS-4, Application
tor Employer ldentification Number, for
information on how to obtain an EIN
rmmediately by telephone, if the organization
does not have an EIN. Enter, "applied for," ~f
the organization has applied lor an €IN
number previously. Attach a staterrlent giv~ng
the date of the application and the office
where 11was filed. Do not app!y for an EIN
more than once.
Line 3. Person t o contact.-Enter the name
and telephone number of the person to be
conlacled during business hours if more
information is needed. The contact person
should be an officer, director, or a person
with power of attorney who is familiar w~th
the organization's activities and who is
authorized to act on ils behalf Attach Form
2848 or other power of attorney
Line 4. Month the annual accounting periM
ends.-Enter the month the organlzation'5
annual accounting period ends. The
organization's accounting period is usually the
72-month period that is the organ~zat~on's
tax
year The organization's first tax year depends
on Ihs accounting period it chooses The first
?ax year could be less than 12 months
Line 5. Date incorporated or formed.-Eriter
the date the organization became a legal
cntlty For corporations this is the dale Lhat
the articles of incorporation were approved by
the appropriate state ofticial, for
un~ncorporatedorganizations. it is the date ~ t s
constitution or an~clesof association were
adopted
Line 6.-Indicate il the organization has ever
f~ledForm 7023. Form 1024. or other
exemption applKarron with the IRS
Line 7.-lrldrcate if the organization has ever
filrd Ft~deralincome tax returns as a taxable
ucydrllzatlon or hled returns as an exempt
nrjanlziltlon (e.g.,Forms 990. 990-E Z
IISO-PF. and 990-T).
Page 2

Line 8. Type of organization and
organizational documents.Organizing instrument.-Submll a
conforn~edcopy of the organizing instrument.
It me organization does not have an
organizing instrument, it will not qualify for
exempt status.
A conformed copy is one that agrees with
the original and at! amendments to it. The
conformed copy may be
A photocopy of the or~glnalsigned and
dated organizing docurnerlr. OR
A copy of the organizing document that is
unsigned but i5 sent with a written
dec[arat~on,signed by an authorized
:ndiv~dual.that states that the copy IS a
complete and accurate copy of the original
s~gnedand dated document
Corporation.-In the case of a corporation, a
copy of the artlcles of ~ncorporation,
approved and dated by an appropriate state
official. is sulhcient by Itself.
If an unsigned copy of the articles of
incorporation IS submitted, it must be
accompanied by the written declaration
discussed above.
Signed or unsigned copies 01 the afllcles of
incorporation must be accompanied by a
declarat~onstating that the original copy of
the anicles was filed with and approved by
the state The date filed must be specified.
Unincorporated association.-In the case of
an unincorporated association, the conformed
copy of the consl~tution,articles of
association, or other organizing document
must indicatc In the document itself, or in .?
written dectaration, that the organization was
formed by the adoption of the document by
two or more persons.
Bylaws.-if the organizatlon has adopted
bylaws, include a current copy. The bylaws
need not be signed if subniltted as an
attachment to the Form 1024 applcation. The
bylaws of an orga~rzationalone are not an
organiz~ngInstrument They are merely the
internal rules and regulations of the
organization
Trust.-In the case of a trust, a copy of the
signed and dated trust Instrument must be
furnished.

Part II. Activities and
Operational lnforrnation
Line 1.-It

that you report all
activities carried on by the organlation to
enable the IRS to make a proper
determlnat~onof the organization's exempt
status
It rs also Important that you provide
detalled tnfo~marionabout the nature and
purpose of each of the activities. The
organization will be contacted for such
lnforrnation ~f it IS not furntshed
Line 2.- If it is anticlpatcd that the
organlzat~on'sprln~ipalsources of support
will increase or decrease substant~allyin
relation to the organizatron's total support.
atlach d stJte!nent describing anticipated
changes and expla~ningthe basis Ior the
expeclauon
Llne 3a.-Furnish the mailing addresses or
lhc orqanlzatton's prlnc~palofficers, d~recrors.
or trustees Do not give the address of the
organization.

Page 3

15Important

Line 3b.-The annual cornpensallon includes
salary, bonus, and any other lorm of payment
to the individual for servic~sperformed for
the organtratlon
Line 4.-If your oryan~zat~on's
activlt~eswere
formerly performed under another name or if
your organizatmrl was a part of another
organization (tax-exempt or nonexempt),
rurnisti the requested lnforrnation Otherwisc.
indlcate "NIA."
Llne 5.-Indicate your organlrarron's current
or planned connection with any lax exempt
or norlexempt organization.
Line 6.-If your organization has lssued stcck
as a means of ind~catingownership by its
members or others. furnish the requested
information Otherwise, indicate "NIA."
Line 7.-If your organlzation is a membership
organlzation, furnish the requested
information. Otherwse, indicate "NfA."
Line #.-If your organizatlon should cease
operations as a tax-exempt organlzalion,
explain to whom its assets will be distributed
Line 9.-lndlcate ~fthe organization
dlstrlbutes, or plans to dlsurbute, any of ~ t s
property or funds (such as a dlstrlbut~onof
profits) to it5 shareholders or members
the cxganizat~on
Line 10.-lndlcate
performs any servlces for any other
wganizatron or individual for whlch ~tis pa~da
fee.
Line 71.-Do not Include the normal salary of
ofti~ersor employees.
Line 12.-Answer "Yes." 11 the organization
either provides insurance lhrough a third
parry or provides the insurance itself.
Line 13.-Examples of public regulatory
bodies are: HUD, HHS, Public Utilities
Cornrn~ss~on.
Housing Commission, and a
state Insurance commission.
Line 14.-Provide the specified informatlon
about leased property whether ~tis used for
exempt functions or for other purposes
Line 15.-Provide the specified inforrnat~on
about political expenditures whether they
were made to support or to oppose particular
candidates.
Line 16.-This includes any prlnred material
that may be used to publicize the
organization's activries, or as an informational
item to members or potential members.

Part Ill. Financial Data
The Statement OF Revenue and Expense5
must be completed for the currenr year and
each of the 3 years immediately helore it (or
the years the organization has ex~sted,IIless
than 4).
Any applicant that has existed for less
than 1 year must give financial data for the
current year and proposed budgets for the
following 2 years.
Any applicant that has been in existence
more lhan 1 year but seeks recognition of
exemprion only for the current ycar and future
years (rather than from the date d as
lormatlon), should give financial data for the
current year and proposed budgets for the
following 2 years.
We may request lrnanc~rrl
data for more
than 4 years if neceswy
All rinanc~allnforrnation for the current year
must cover the per~odbeginning on the flrst
day of the organization's establ~shedannual
accotlntinq per~odand ending on any day
that is w~thln60 days of the ddte of th15
appllcat~on

If the date of this application is less than 60
days after the first day of the current
accounting per~od,no frnancial information is
~equircdfor the current year.
Flrianc~al~nformat~on
IS requlred for the 3
preceding years regardless of the current year
requirements.
Note that if no financ~alinformatlon IS
requlred lor the current year, the preceding
year's financial lnformatim can en4 on any
day that is w~thin60 days of the date of thls
application
Prepare lne stalernents using the method
of accounting and the accounting period the
organizatmn uses in keeping its books and
records.
If the organization uses a melhod alher
than the cash receipts and disbursements
method. attach a statement explaining the
method used.

A. Statement of Revenue and
Expenses
Line 1.-Include amounts received from the
members that represent the annual dues and
any spec~alas.jessments or initiation fees
Line 2.-Do not include amounts received
from the general public or a governmental
unlt for the exercise or pwformance of the
organization's exempt tunct~on
Llne 3.-Examples of such rncome include:
the income derived by a social club from the
sale of food or beverage to its members: the
sale of burial lots by a cemetery association:
and lees charged by a social welfare
organizatlon or trade assmiation for an
educational semloar it conducted.
Line I.-Enter rhe organization's gross
incorrie from activities that are regularly
carr~edon and not related to the
organization's exempt purposes.
Examples of such Income 11xlude:fees
from the commercial lesting of products;
income from renting offlce equipment or other
personal property: and income from the sale
of advertising in an exempt organization
perbodical See Pub. 598 for information about
unrelated business income and activities.
Line 5.-Attach a schedule showing the
dewr~puonor each asset, the name of the
pcrson to whom sold, and the amount
received. In the case of publicly traded
secur~tiessold through a broker, the name of
the purchaser is not required.
Line 6.-Include on this line the income
received from dividends. interest, payments
received on securltres loans (as defined in
sectLon 51 2(a){5)). rents, and royalties.
Line 7.-Enter the total Income from all
sources that is not reported on lines 1
through 6 Include, for example, income from
spwlal events such as raffles and dances
that IS rmt taxable as unrelated business
Income Attach a schedule that lists each
type of revenue source and the amount
derbved from each.
Line 9.-Enter the expenses directly related
to the income sources reported on line 3 of
this part
Line 10.-Enter the expenses directly relatcd
lo the income Sources reported on line 4 of
th15 part
Llne 71.-Attach a schedule showing the
mmc: of the recipient, a briel descrlptbon of
the purwses or conditions of payment. and
the Amount wid.