Not sure whether your church should apply in the first place? See our companion guide, Does Your Church Need to Apply for Tax-Exempt Status? A Decision Guide, which walks through the pros and cons before you begin.

Step 1: Confirm Your Church Qualifies for a 501(c)(3) Application

Before filing anything, make sure your church actually qualifies under IRC Section 501(c)(3). To be tax-exempt, a church must be organized and operated exclusively for exempt purposes — meaning:

• None of its earnings may benefit any private shareholder or individual (no private inurement).
• It may not attempt to influence legislation as a substantial part of its activities.
• It may not participate in any political campaign activity for or against candidates.

Organizations meeting these requirements are commonly referred to as charitable organizations, and are generally eligible to receive tax-deductible contributions under Code Section 170.

Step 2: Get an Employer Identification Number (EIN)

Your church needs an EIN before applying — even if it has no employees. This is free and can be obtained directly and immediately through the IRS website.

Step 3: Understand Why Churches Must Use the Full Form 1023

Many small nonprofits qualify for the IRS’s shorter, cheaper Form 1023-EZ. Churches do not. The IRS specifically excludes churches, schools, and hospitals from using Form 1023-EZ, regardless of budget or size. Every church seeking formal recognition must file the full Form 1023, Application for Recognition of Exemption.

Step 4: Prepare the Required Documents

The full Form 1023 is detailed, and the IRS estimates 100+ hours of preparation time for most applicants. You’ll generally need:

• Articles of Incorporation (or organizing document, if your church is an unincorporated association).
• Current bylaws.
• A detailed narrative describing your church’s activities, programs, and how they further your exempt purpose.
• Financial statements or projections, typically covering the current year plus two to three prior or projected years.

Step 5: File and Pay the Filing Fee

Form 1023 is filed electronically through Pay.gov. The filing fee is $600, and it’s non-refundable — even if the application is later withdrawn, denied, or filed using the wrong form.

Step 6: Wait for IRS Review

Processing typically takes 3 to 6 months. Straightforward applications are sometimes reviewed faster; applications that raise questions or need clarification can take a year or more. Once approved, the IRS issues a determination letter. Keep this document permanently — it’s the official, lasting proof of your church’s federal tax-exempt status.

Alternative: Group Exemption

If your church is part of a denomination or parent organization, you may not need to file your own Form 1023 at all. In these cases, the parent organization holds a group ruling that identifies affiliated churches as exempt. If your church is included on the list provided by the parent organization, no individual application is necessary.

What Changes After Approval

• Donors receive documented proof that contributions are tax-deductible, rather than relying on your church’s self-declared status.
• Churches are generally not required to file IRS Form 990 annually — one of the practical benefits of church-specific status, unlike most other 501(c)(3) organizations.
• Your determination letter becomes the standard document requested by banks, grantmakers, and other institutions when verifying your church’s tax-exempt status.

Next Step: California Requires Its Own Separate Filing

Federal recognition from the IRS does not automatically extend to California state taxes. Once you have your IRS determination letter, your church will still need to apply separately with California’s Franchise Tax Board to be exempt from state franchise and income tax. That process — including which form to use and what to expect — is covered in a separate guide.

Please see our other related articles

Does Your Church Need to Apply for Tax-Exempt Status?
Group Tax Exemptions
Choosing the Right Entity
The Basics of Church Formation

Disclaimer

Church 501(c)(3) Application: A Guide to IRS Form 1023Every situation is different, and particular facts may change the appropriate course of action or conclusion. Laws vary between federal, state, county, and municipal jurisdictions. This information is general in nature and is not intended as legal advice, a legal opinion, or professional services. You should consult a qualified professional regarding your particular situation.