Are EZ charities really easy? Yes ... and no

By Zachary S. Kester, JD, LLM, CFRM and Laura Fucio, Charitable Allies

IRS recognition of a nonprofit's tax-exempt status is crucial for any nonprofit hoping to receive grants. Most grantors or donors need advanced assurance of the IRS determination of tax-exemption or deductibility to satisfy tax obligations upon them.

In 2014, the IRS introduced the Form 1023-EZ, designed to streamline the process for smaller nonprofits. However, some concerns arose regarding the ability of grantors to rely on EZ determination letters. The IRS has assuaged some of these concerns, but others remain. Continue reading