100% Success Rate

A word about my 100% 501c3 success rate: For the past 34+ years, I have been obtaining nonprofit 501c3 status for my clients. How is it that I have a 100% success rate over such a long period and with over 2,400 applications personally prepared?

For one thing, we remain somewhat choosy about our clients, and we turn down clients where there may be a chance they will not obtain IRS approval. As careful as we are in selecting clients however, sometimes we still come close to losing one. Three years ago, one of our clients had the mission to put a Christian cross on the moon. It took 13 months to convince the IRS that this was a public benefit, and I thought I was going to lose my 100% 501c3 success rate. After so many years, I can usually tell within minutes whether a prospective client’s idea for his or her nonprofit will fly with the IRS or not. And perhaps more importantly in most cases is structuring the nonprofit for success with the IRS.

Secondly, I do the work myself. I guess I am too much of a perfectionist to let other people prepare the applications for our clients. I am sometimes asked if I have any help. Yes, I do, but you are not likely to be aware of that help, because up to this point, it is very much in the background.

Thirdly, not all clients have succeeded in obtaining their tax-exempt approval—either because they failed to follow through with their application, failed to be timely responsive to the IRS when asked for additional information, or were unwilling to agree to changes in the application that were needed for success. But every client who has followed through to the end has obtained his or her 501c3 status. So far, I have never had an IRS denial.

Finally, the Plan S Self Service is a somewhat different animal, as we don’t have control over what our client sends in to the IRS. There is no way to know if our client has followed all our instructions. If our client does follow all our instructions and sends us any attachments to review, he or she will achieve tax-exempt status. If not, and the nonprofit fails to secure 501c3 status, then we cannot take responsibility for the failure. This is not a disadvantage of the Plan S Self Service. It just puts major responsibility on the part of the client to follow precise instructions.