- 1). Catch up with all filing requirements as a 527. Your organization must file annual Form 990s with the IRS, which are tax returns for entities that are not subject to the federal income tax. You must also catch up with IRS Form 8872 filings. This is a report of all contributions and expenditures.
- 2). File or amend articles of incorporation. If you have not already formed a corporation in your state, you must file new articles of incorporation for a nonprofit corporation with the office of the secretary of the state in your state.
- 3). Develop or revise your mission statement. Organizations that are a 501(c)3 or 501(c)4 lose their tax-exempt status if they engage in political advocacy or lobbying to affect a change in the law. They must restrict their activities to nonpolitical purposes. This may require a major change in culture at your organization, as well as an effort to educate your staff about the new restrictions as a 501(c) organization.
- 4). File the appropriate application for recognition of exemption. This form is different depending on what paragraph of Section 501(c) you want your organization to fall under. If you want your organization to fall under Section 501(a), for example, you must file an IRS Form 1024. If you want to become a 501(c) organization, file an IRS Form 1023. Otherwise, make your request in writing to the address shown in Form 8718.
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