Examples - Organizations Qualify for Expedited Processing of Exemption Applications
Disaster Relief - Example #1
Applicant was formed to help victims of an earthquake find temporary housing. Applicant applies for tax-exempt status within a few weeks or months from the date the disaster occurred. The applicant plans to hold a major fund raiser and a popular rock band volunteered its services for the concert. Income from this event is expected to be a significant source of the organization’s annual revenues and plans are to disburse the majority of these funds to find temporary housing for victims of the earthquake. Therefore, the request is approved.
Pending Grant - Example #2
Applicant anticipates gross receipts totaling $100,000 in its first year to carry out its purpose of feeding the homeless in a community. Shortly after the organization applies for tax-exempt status, it is promised a one-time $50,000 grant from the ABC Foundation. The grant is contingent on the applicant organization being recognized as exempt under section 501(c)(3) by a specified date. The expedite request is approved because a significant portion of the organization’s annual income is contingent on the pending grant, and the funds will be lost if exemption is not granted by the specified date.
Pending Grant - Example #3
Organization submits an application for exemption and indicates it plans to operate a drug and alcohol treatment center for teens. The previous center closed years earlier and there is no other substance abuse center within the area. A named member of the community promises to donate a specific amount that will cover the cost of building the center, if the applicant organization can provide proof of exemption under section 501(c)(3) by a specified date. Because the organization cannot open the treatment center without funding for the building, the expedite request is approved.