The most common reason that 501c3 status gets revoked is not filing the proper 990 form on time for 3 consecutive years. Even if you filed your 990 for those three years, if it was late each time, the IRS will still revoke your status. In order to regain your 501c3 designation, you’ll need to go through the nonprofit reinstatement process.
How to Reinstate Tax Exempt Status
Losing your IRS tax-exempt status can have a major impact on your operations as a nonprofit organization. Without an active 501c3 status, you won’t be able to apply for grants or guarantee tax-deductible donations for your donors. If you’re looking to reinstate tax exempt status, you’ve come to the right place. Pursuing reinstatement doesn’t have to be difficult when you’ve got Charitable Allies’ nonprofit attorneys on your side.
Choose your path to nonprofit reinstatement
There are four different ways you can reinstate tax exempt status. But which type of reinstatement makes the most sense for your organization? And is your nonprofit eligible for each type? We’ve helped hundreds of nonprofit leaders get their ducks in a row and reinstate tax exempt status. So our legal team aren’t strangers to the process. Reach out to us for a free initial consultation and we’re happy to talk through your unique situation and which option works for your nonprofit.
Streamlined Retroactive Reinstatement
Retroactive Reinstatement within 15 months of revocation
Retroactive Reinstatement more than 15 months after revocation
Post-Mark Date Reinstatement
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a nonprofit for nonprofits
a nonprofit for nonprofits
a nonprofit for nonprofits
a nonprofit for nonprofits
a nonprofit for nonprofits
a nonprofit for nonprofits
a nonprofit for nonprofits
What to Know Before Your Nonprofit Reinstatement
Having your tax-exempt status revoked hinders your ability to further your nonprofit's mission. If your nonprofit ended up on the auto revocation list, we’re here to help. Working with a nonprofit attorney who is familiar with 501c3 reinstatement options can help streamline the process so you can get back to your mission as soon as possible. We’re happy to speak with you about options that include retroactive tax deduction so your donors can still take the tax deduction even if your status was revoked at the time of their donation.
When you start working with a Charitable Allies Attorney to reinstate tax exempt status, they'll want to know:
When you start working with a Charitable Allies Attorney to reinstate tax exempt status, they'll want to know:
Which type of 990 does your nonprofit file with the IRS?
Is this the first time your status has been revoked?
Has it been more or less than 15 months since the revocation?
Do you have reasonable cause for not filing your 990 on time in the last 3 years?
Why Us?
A Straightforward Process
Getting professional legal guidance helps make the process for 501c3 reinstatement simple. With over a decade of experience, our team knows the ins-and-outs of reinstating tax exempt status for organizations of all sizes.
A Nonprofit’s Perspective
We’re a nonprofit that serves nonprofits, so we handle the requirements to keep our own nonprofit status active too. When you work with Charitable Allies, you’re working with people who understand firsthand.
Comprehensive Legal Services
We serve nonprofits at every stage of development. Once you’ve gone through the process to reinstate tax exempt status, we’re still here to help with the everyday challenges of keeping your nonprofit compliant.
Navigating 501c3 reinstatement?
Reach out to our legal team for a free consultation! We can provide guidance about the path to nonprofit reinstatement.
Frequently Asked Questions
A reasonable cause statement is a part of restoring your 501c3 status if it’s been more than 15 months since your revocation. It establishes that an organization had reasonable cause for its failure to file an annual return for at least 1 of the 3 consecutive years where it failed to file.
There are multiple types of reinstatement, so the exact steps will depend on which type of reinstatement is right for your nonprofit. But generally speaking, it typically involves refiling a 1023-EZ or 1023 with the IRS and reporting on some past financial information the IRS might be missing. Curious about the process for your specific situation? Reach out to us for a free initial consultation and we’ll meet with you over Zoom to discuss. We’re happy to talk with you about your options, the process, timeline and cost of 501c3 reinstatement.
Oftentimes, donors want the assurance that 501c3 status provides. However, there are times that donors are okay providing funding to organizations without tax exempt status. During that time, you’ll need to let donors know their contributions won’t be tax deductible unless you’re in the process of pursuing one of the retroactive 501c3 reinstatement options. If you are, speak with your Charitable Allies representative to learn more about accepting donations and messaging to donors while you’re waiting on getting your status active again.
If you take the path of retroactive reinstatement, donations made while your nonprofit status was revoked will be retroactively tax deductible. Put simply, donors will be able to take their tax deduction as usual once you have your 501c3 status restored. Post-Mark Date Reinstatement is the only 501c3 reinstatement option that is not retroactive. This means that any donations made while your status was revoked are not tax deductible.