An organization must apply in writing (on Form 1023 for Code Sec. 501(c)(3) organizations) and with the appropriate user fee with for an IRS ruling or determination that it's exempt from federal income tax. The Form 1023 is long and detailed. The user fee is currently $400.00 for small organizations.

You may also be able to get exempt status by filing form 1024 instead of Form 1023. Which form you use is dependent on the TYPE of 501(c) organization you have.

I would suggest that you use someone for this who is well versed in tax exempt organization set up. Either process is long and detailed and both require that the Articles of Organization/Incorporation contain very specific wording.

You almost have to work backwards when setting up a nonprofit. I start with the appropriate IRS form for the type of entity I want, then I complete that form, then draft or amend the organizing documents to comply.

The user fee at the IRS can be substantial and it can take hours and hours to get all the paperwork right. I do some nonprofit work, but am focused in a very particular area with only ONE type of organization. I have the paperwork down to an art, all the forms are filled out in boilerplate form for the IRS and the organizing documents AND I still charge a minimum of $750 and that's if they take my forms and do all the work themselves. If I have to do everything my fee STARTS at $3500 and easily go above $5000.

Make sure this work you WANT to do before you quote a fee; otherwise you'll be on the hook for a ton of work with little or no pay.

Just because they are nonprofit doesn't mean they don't have to pay their way!