Requirements

2. Basic Requirements


Image by Matthew Henry

1) Not-For-Profit, Charitable Organization

  • In order to become a 501(c)(3), your Neighborhood Association must be considered a not-for-profit, charitable organization. According to IRS standards, your Neighborhood Association qualifies if you work toward "lessening the burdens of government; lessening neighborhood tensions...and combating community deterioration and juvenile delinquency".1
  • If your Neighborhood Association does not have an established mission statement, this is a great opportunity to create one.

2) Application

  • There are two forms which must be filled out in order to apply, the SS-4 Form and 1023 Form (which will be discussed later)


3) Record Keeping

  • 501(c)(3)s are required to keep books and records detailing all activities, both financial and nonfinancial. A detailed outline of requirements will be discussed later.


4) Annual Information

  • 501(c)(3)s are required to file an annual information return - a Form 990
  • This form is due by May 15th of each year


If your Neighborhood Association meets all these requirements and can continue ongoing compliance, you qualify to apply for 501(c)(3) status!



1. Internal Revenue Service, “Exempt Purposes - Internal Revenue Code Section 501(c)(3),” IRS, August 20, 2024, https://www.irs.gov/charities-non-profits/charitable-organizations/exempt-purposes-internal-revenue-code-section-501c3, 1.