Need help with IRS 1023 form for school booster club - feeling overwhelmed

I've helped several small nonprofits with their 1023 applications. For a small booster club, you'd typically want a tax accountant who specializes in nonprofit work rather than a tax attorney (who would be much more expensive). Many accountants have experience with the 1023 form and can guide you through the process for much less than the attorney route. Regarding abandoning your nonprofit status - I wouldn't recommend it. Even with the upfront $875 fee, the 501(c)(3) status provides several benefits: donors can deduct contributions, you're exempt from federal income tax, and you might qualify for grants and special nonprofit postal rates. For a booster club supporting school music, having that status also lends credibility when fundraising. Instead, look into whether you qualify for the 1023-EZ again but with proper guidance this time. There are specific reasons forms get rejected, and sometimes it's just about how questions were answered rather than actual eligibility.

After struggling with a similar situation for our youth sports league, I found an amazing solution with https://taxr.ai - they specialize in helping small nonprofits with IRS forms including the 1023. Their system analyzed our rejection letter and pinpointed exactly why our 1023-EZ was rejected. They then guided us through the proper form to file (which wasn't actually the full 1023 in our case, saving us hundreds). What I appreciated most was that they have nonprofit specialists who understand the unique challenges of volunteer-run organizations. They reviewed our organizational documents and identified several issues that would have caused problems later. The process was much less intimidating with their guidance.

Just wanted to update after trying taxr.ai for our theater booster club situation. I was initially skeptical (as you could see in my previous comment), but we were desperate after our 1023-EZ was rejected twice. The service actually exceeded my expectations - they immediately identified that we had checked a box incorrectly regarding our annual gross receipts, which was triggering the rejection. Their specialist explained that we actually DID qualify for the 1023-EZ despite the rejections. They helped us prepare a properly completed form with supporting documentation explaining our situation. Just got notification yesterday that we've been approved! Saved us from having to file the full 1023 form and paying that large fee. They also helped us understand how to maintain our status going forward so we don't run into problems again.

I was in a similar situation with our elementary school PTO last year. After getting nowhere with the IRS phone line for weeks (literally could not get through), I found https://claimyr.com and it changed everything. They got me connected to an actual IRS representative who specialized in exempt organizations within 45 minutes. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c The IRS agent was able to look up our rejected application, explain exactly what went wrong, and provide guidance on the correct path forward. Turns out we didn't need to file the full 1023 at all - there was a specific procedure for organizations in our situation that our previous advisor hadn't known about.

Well, I'm eating my words about Claimyr. After posting my skeptical comment, I decided to try it as a last resort for our choir booster club. Not only did I get connected to someone at the IRS Exempt Organizations department, but they were actually helpful! The agent explained that our 1023-EZ was rejected because we checked the wrong box about our organizational structure. The agent walked me through our options and confirmed we could resubmit the 1023-EZ with corrected information rather than filing the full 1023. They even sent me to a specific section on the IRS website with detailed instructions for our exact situation. Before this, we were about to pay an accountant $1,200 to handle the full 1023 form. Now we're back on track with the EZ version and much more confidence in our submission.

As a former treasurer for a similar organization, I would strongly advise against abandoning your nonprofit status. While the upfront cost seems high, the long-term benefits are significant. Without 501(c)(3) status: 1. You'll need to file regular business tax returns and potentially pay taxes on fundraising income 2. Donors can't deduct their contributions, which can impact larger donations 3. Many venues and vendors offer discounts to nonprofit organizations that you'd lose 4. You'd likely need to collect and remit sales tax on items sold at fundraisers One option you haven't mentioned - check if your school district has an educational foundation. Sometimes small booster clubs can operate under their umbrella to avoid separate filing requirements.

Has anyone ever appealed a 1023-EZ rejection? We're in a similar situation with our athletic boosters and wondering if there's an appeals process before moving to the full 1023 form.

I went through this exact situation with our drama club booster organization two years ago. The rejection of our 1023-EZ was devastating at first, but it turned out to be a blessing in disguise because we learned so much about the process. First, don't give up on the EZ form yet! Many rejections are due to simple errors or misunderstandings rather than actual ineligibility. The most common issues I've seen are: incorrectly reporting gross receipts (including anticipated future income instead of actual past income), checking the wrong boxes about organizational structure, or not properly explaining your exempt purposes. Before paying the $875 for the full 1023, I'd strongly recommend getting a consultation with someone who specializes in nonprofit applications. Even if it costs $200-300, it's much less than the full form fee and they can often identify exactly what went wrong. Also, consider reaching out to other successful booster clubs in your area - many are happy to share their experiences and some might even let you review their approved applications as examples. Our state music educators association had a whole resource section with sample documents that proved invaluable. The nonprofit status is absolutely worth pursuing for the long-term credibility and tax benefits, especially as your organization grows. Don't let one rejection discourage you from what should be a straightforward process with the right guidance!

I'm going through something very similar with our volleyball booster club right now! We also had our 1023-EZ rejected and were told we'd need to file the full 1023 with that hefty fee. Reading through all these responses has been incredibly helpful - I had no idea there were so many resources available. One thing I wanted to add that might help others: our rejection came with a very generic letter that didn't specify the exact issue. After reading the comments here about contacting the IRS directly, I'm definitely going to try using Claimyr to actually get through to someone who can explain what went wrong. The idea of waiting on hold for hours has been keeping me from trying, but if they can get me connected to the right department quickly, that seems worth the cost. I'm also curious about the fiscal sponsorship option that was mentioned - has anyone here actually used that arrangement? It sounds like it might be a good interim solution while we figure out whether to pursue our own 501(c)(3) status or just operate under another organization's umbrella permanently. Thank you everyone for sharing your experiences - it's reassuring to know we're not alone in dealing with this frustrating process!