What This Letter Means
Letter 947 is good news. Its title is 501(c)(3) Exemption With Definitive Ruling of Public Charity Status. The IRS approved your application and recognized your organization as exempt from federal income tax under section 501(c)(3). It also classified you as a public charity rather than a private foundation.
Organizations approved on Form 1023 or Form 1023-EZ both receive this letter if they qualify as public charities. Private foundations get a different letter, Letter 1076.
What to Check
- Effective date. To be exempt from its date of formation, an organization generally must apply within 27 months from the end of the month it was formed. A late filer may get a later effective date.
- Public charity classification. The letter states the section that applies. A supporting organization's letter states its type. A private school's letter notes its responsibility to file Form 5578.
- Name and EIN. Make sure both match your records.
One exception matters to donors. An organization classified under section 509(a)(4) gets a modified letter stating that contributions to it are not deductible.
What to Do
- Keep the letter permanently. Donors and grantors may ask for it.
- File your annual Form 990-series return on time every year. Failing to file for three consecutive years automatically revokes exemption.
If You Lose It
Determination letters issued January 1, 2014 and later can be downloaded through the IRS Tax Exempt Organization Search tool. For older letters, request an affirmation letter on Form 4506-B. It serves the same purpose for grantors and contributors as the original.
If your organization needs help with an exemption or compliance issue, call us at (813) 229-7100.