How long does it take for the IRS to recognize a non-profit organization?

Question

does anyone here know? you see we are trying to have out paintball club here at college recognized as a non-profit, as a private foundation to be more exact, and almost everything is being put on hold until we get the reply.

My members would like to have some idea since most of the benefits are coming from having a non-profit status.

Answer 1

The process can take 18-24 months, in some cases. What many non-profits do originally is to attach themselves to an existing non-profit until the approval comes through (like a church, school, etc.).

Answer 2

I would advise against organizing as a IRC 501(c)(3) & 170(b)(1)(A) private foundation. I don't believe you can reasonably establish a purpose that meets a charitable, religious, educational, etc. requirements under that section of the Code.

Even if you should meet the requirements for a private foundation for application purposes, the filing of the Form 990-PF, Annual Information Return, can be a daunting task. Private foundations are closely scrutinized and are subject to a number requirements to ensure its charitable purposes are being met.

Because you speak of members in a recreational setting, I would recommend applying under IRC 501(c)(7) as a tax- exempt social club. You would use application Form 1024.

You still have the advantage being exempt from income taxes except for taxes on any unrelated business activities. Contributions are not deductible, but you avoid the strenuous annual filing requirements as a private foundation. Social clubs file the Form 990 but it is was far easier than the Form 990-PF.

Good luck.