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Exempt Organizations: Rulings in advance of operations

A ruling or determination letter may be issued in advance of operations if your organization can describe its proposed operations in enough detail to permit a conclusion that it will clearly meet the particular requirements of the section under which it is claiming exemption.  A restatement of the organization's purpose or a statement that it will be operated in furtherance of that purpose will not satisfy this requirement.  The organization must describe fully the activities in which it expects to engage.  This includes standards, procedures, or other means adopted or planned by the organization for carrying out its activities, expected sources of funds, and the nature of its contemplated expenses.

When an organization does not supply the information mentioned above, or fails to furnish a sufficiently detailed description of its proposed activities to permit a conclusion that it will clearly be exempt, a record of actual operations may be required before a ruling or determination letter is issued.



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Page Last Reviewed or Updated: 30-Oct-2013