Applying for 501(c)(3): Form 1023 vs 1023-EZ, and What the Determination Letter Means
October 6, 2026 · ACHONU Foundation
This is our experience, not legal or tax advice. Check with the IRS, your state, or a qualified professional.
Applying for 501(c)(3): Form 1023 vs 1023-EZ, and What the Determination Letter Means
When we started ACHONU Foundation, we learned quickly that how to apply for 501c3 status is not just a paperwork question. It is a question of readiness, accountability, and whether our public promises match our actual structure.
We are a U.S. nonprofit based in Austin, Texas, incorporated in 2026, with a registered Nigerian affiliate. Our own filing details are intentionally transparent placeholders here: We received our IRS determination letter recognizing ACHONU Foundation as a 501(c)(3) public charity under section 170(b)(1)(A)(vi), effective April 30, 2026.
Form 1023 or Form 1023-EZ?
Form 1023 is the full application for recognition of exemption under Section 501(c)(3). It asks for detailed information about your purposes, activities, governance, finances, and policies.
Form 1023-EZ is the shorter, streamlined option. But it is not simply a faster version that every small nonprofit can choose.
Before filing, an organization must complete the Form 1023-EZ Eligibility Worksheet. If the answer to any worksheet question is “Yes,” the organization is not eligible for Form 1023-EZ and must file the full Form 1023.[1]
Both forms are filed electronically through Pay.gov. Paper submissions are not accepted for Form 1023-EZ. As of October 5, 2026, the IRS lists the user fees as $600 for Form 1023 and $275 for Form 1023-EZ. Fees can change, so check IRS.gov before submitting.[2]
For us, the important question was not, “Which form is easier?” It was, “Which application accurately reflects the organization we are building?”
What we prepared before filing
We began by making sure our public mission, governance documents, program plans, and financial assumptions told the same story.
That mattered because ACHONU’s work is built for long-term socio-economic mobility, not short-term fixes. Our model follows high-potential girls from primary school through early career, combining education access, digital and financial skills, health education, mentorship, and leadership development. You can read more about our purpose on our About page.
Accountability also had to be practical.
We choose girls through a process that starts with our partner schools, which identify and refer students they believe fit our mission. From there, we verify school records and transcripts, and we visit the family home—not as an inspection, but as a conversation about fit, commitment, and what support will really take to last.
Before enrolment, the family signs the Sponsorship & Accountability Agreement, including a 90% attendance requirement. That agreement is the cornerstone. It makes expectations clear and helps connect opportunity with responsibility. Radical transparency is not a slogan for us. It is how we protect the work.
What the determination letter means
If the IRS approves the application, the determination letter is the official written recognition of the organization’s 501(c)(3) exemption.
It generally states the organization’s foundation classification and whether contributions are tax-deductible to donors.[3] We treat that letter as an important milestone, not as permission to stop being careful.
Timing matters too. If Form 1023 is filed within 27 months of formation, exemption generally applies back to the formation date. Otherwise, the effective date is generally the filing date, subject to IRS rules and any applicable relief.[4]
The letter confirms status. It does not replace strong records, honest reporting, or responsible stewardship.
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This is our experience, not legal or tax advice. Check with the IRS, your state, or a qualified professional.