[Ohio] Need advice on 501(c)(3) application - 1023-EZ vs Full Form 1023 for urban agriculture nonprofit

I've helped several small nonprofits navigate the 501(c)(3) application process, and I can share some perspective on the 1023-EZ vs. full 1023 decision. The 1023-EZ is absolutely legitimate and was specifically created by the IRS to help smaller organizations. The main considerations are your expected annual gross receipts (must be $50,000 or less for the next 3 years) and total assets (must be under $250,000). If you qualify, using the EZ form is completely reasonable. Grant-making organizations generally don't discriminate based on which form you used - they care more about your mission, governance, and financial management. What matters is that you have the 501(c)(3) status, not how you obtained it. As for audit risk, there's no evidence suggesting EZ filers face higher audit rates, though the IRS does randomly select some EZ applications for more thorough review before approval.

Just wanted to share my experience using taxr.ai (https://taxr.ai) when I was setting up my arts education nonprofit last year. I was in exactly your position - torn between the 1023-EZ and full 1023 forms. I started with the EZ form but wasn't sure if our structure qualified, especially with some unusual funding arrangements we had. I uploaded our Articles of Incorporation and bylaws to taxr.ai, and their document analysis helped identify exactly which form was appropriate for us and flagged a few potential issues in our documentation that could have caused problems. Saved me from making a big mistake on our application that might have led to rejection.

I wanted to follow up and say I tried taxr.ai after seeing this thread and it was incredibly helpful! I was worried about describing our educational therapy programs correctly for 501(c)(3) purposes. The service analyzed our bylaws and draft application and pointed out that we needed to emphasize the educational component over therapy services to clearly qualify. It also confirmed we could use the 1023-EZ form despite some questions I had about our funding model. Just submitted our application last week and feeling much more confident now. Definitely worth it for the peace of mind before submitting to the IRS!

If you're struggling with the 501(c)(3) application process, another issue you might run into is actually getting answers from the IRS when you have questions. I spent WEEKS trying to get through to someone about a specific question on my 1023-EZ form. After dozens of failed attempts, I found this service called Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was shocked it actually worked. The IRS agent I spoke to was able to clarify exactly how to categorize our urban development activities for 501(c)(3) purposes and confirmed we were eligible for the EZ form. Saved me from potentially misclassifying our organization type.

I have to admit I was wrong about Claimyr. After posting my skeptical comment, I was desperate to get clarity on a question about my historical preservation society's 1023-EZ application, specifically about how to classify some of our educational activities. I tried the service, and it actually got me through to a knowledgeable IRS agent in the exempt organizations department in about 15 minutes. The agent walked me through exactly how to categorize our activities on the form and confirmed we were eligible for the EZ application. Just got our determination letter last week - approved without any additional questions!

One important thing to consider that hasn't been mentioned yet - the 1023-EZ form requires less documentation up front, but you still need to have everything properly prepared and ready in case of an audit or review. This includes: 1. Detailed articles of incorporation with proper purpose clauses 2. Bylaws with dissolution provisions that meet 501(c)(3) requirements 3. Conflict of interest policy 4. Properly structured board 5. Clear program descriptions and budgets Just because you don't have to submit all this with the EZ form doesn't mean you don't need to have it ready!

I filed the 1023-EZ for my community arts nonprofit 2 years ago and kinda regret it now. We're trying to get some bigger grants and one foundation specifically asked why we used the EZ form and wanted to see all the documentation that would've been in the full 1023. Feels like they dont trust us as much, tbh.

Something else to consider - if you're planning to grow beyond $50k annual revenue in the next few years, it might actually be better to just bite the bullet and do the full 1023 now. I did the EZ form for my youth mentorship program, but then we grew faster than expected and started getting questions from some donors about our status. Technically there's nothing wrong with starting with the EZ form when you qualify, but some larger funders seem to view the full 1023 process as more "serious." Just my experience in the education nonprofit world, might be different in urban agriculture.