Finding Trustworthy Non-Profits: New IRS Rules Simplify New Charity Start-Up

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Recent reforms by the IRS have made it easier for small non-profits to apply for 501(c)(3) tax-exempt status. Previously, new charities had to fill out the 26 page IRS Form 1023, and provide detailed documentation on their operations and activities. Now, smaller charities can fill out the 3 page IRS Form 1023-EZ, pay a lower application fee, and qualify for faster approval.

Sounds efficient, but what’s the downside? Some experts worry that the new rules are too simple and the IRS is no longer asking enough important questions about each new non-profit that applies for tax-exempt status. Less scrutiny could make it easier for questionable organizations to operate as charities. With these new rules, how can donors and other supporters make sure a non-profit is trustworthy?

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One of the guiding principles of the FACE Foundation is transparency. FACE has been, and always will be, dedicated to transparency as an organization. We remain unquestioningly compliant with all legal regulations.

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We are proud to have been awarded Gold Seal status by GuideStar, an organization that gathers and disseminates information about non-profits in an effort to advance transparency. This recognition is GuideStar’s highest level of achievement, and demonstrates FACE’s commitment to honesty and transparency.

For more on the new IRS charity rules, click HERE, and to see FACE’s GuideStar profile, click HERE.

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