Income or Assets over $____ first three years
Income or Assets over $100,000 first three years ($200)
Income or Assets over $500,000 first three years ($400)
Income or Assets over $1,000,000 first three years ($600)
Income or Assets over $5,000,000 first three years ($800)
Income or Assets over $10,000,000 first three years ($1,000)
- Income includes income from all sources including grants and unusual gifts, and also includes the market value of gifts of property (not just cash).
- Assets includes market value of all property without regard to how much may be owed on the property.
- We know you don't know what your maximum income or assets will be during the first three years of operation (or next three years of operation if you are on Plan B, having already incorporated). But even though you can't accurately predict the future, the IRS wants to know what you THINK it will be, and you will need to project this information for the IRS.
- Be conservative, be realistic, but of course, be honest.
- What happens if you guess wrong? Normally, this is not a problem because if you do your best in planning and projecting what the future holds, there will be no negative down-side to your projections.
- You may wonder why our fee is higher when your income or assets are higher. The higher the figures for income and assets, the greater is the IRS scrutiny of your application, and generally the more complicated things are for us. From our experience, there is less IRS scrutiny and less time spent on our part for a $10,000 nonprofit than a $1,000,000 dollar nonprofit. That's probably obvious, but we thought we'd answer the question anyway.