When I first prepared an Form 1023 to get the IRS to recognize the organization's 501(c)(3) status, I was shocked at how long the process took. Back then, I had a response, following a supplemental information request (a fancy way of saying "hey, we need to know more about you before we ok this application.") within six months.
Ten years later, I really long for those good old days of lightning fast IRS response.
These days you're lucky to even hear back from the IRS at all within six months. As of this moment, the IRS is processing October 2006 applications! As charities have become more and more popular, the IRS seems less prepared to handle the crush. As a result, many organizations that had grand fundraising and operational plans sit and wait for the paperwork to percolate through the system. There are, of course, other options for these groups, including fiscal sponsorship and volunteer activity. I'll post more about these options in the future.
Word to the wise... when forming your charity, be prepared for a long wait.
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