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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 111454
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Will there be a problem non profit organization requesting

Customer Question

Will there be a problem for an non profit organization requesting 501c3 status from the IRS on 1023EZ if the board members listed are all related parties? I know the original 1023 asks many questions of relationships but the 1023EZ does not have any.
Submitted: 1 year ago.
Category: Legal
Expert:  Law Educator, Esq. replied 1 year ago.

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

The IRS requires public charities to have a board structure that is a majority unrelated by blood, marriage, and outside business connections, and majority non-employees of the nonprofit. If this is going to be a public charity, even though you are using the 1023EZ, you still have to comply with the IRS guidelines and the board cannot be a majority of related persons. If they are and the IRS finds out they will revoke your status.