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Warning: nonprofit 501c3 application denied

Started by deskjockey_26 · Jun 6, 2025 · 1,856 views · 6 replies
For informational purposes only. This is not legal advice. Laws vary by jurisdiction. Consult a qualified attorney for advice specific to your situation.
DE
deskjockey_26 OP

Fwiw i've been trying to resolve this on my own but I'm stuck.

nonprofit 501c3 application denied. I've been dealing with this for about 9 months now and teh situation isn't improving.

I have already consulted briefly with a lawyer but got conflicting advice....

Should I hire a lawyer for this or try to handle it myself?

SO
sustained_overruled

I went through almost the exact same thing.

I ended up hiring an attorney to send the initial letter, which cost about $2-4 but saved me a lot more in the long run.

BB
broke_but_hopeful_4

Been there. Here's what I learned.

Don't make the same mistake I did -- is escalating to a supervisor/manager. I'd recommend following the formal complaint procedure instead.

JW
Justin_W_32

Following this thread — following

NJ
nicole.j_29

I work in this industry and unfortunately this is very common. The good news is that when people actually push back with legal representation, companies usually settle.

EBI
commuter_life_4 Contributor

Update: filed in small claims court last week. Total cost was $75 filing fee + $20 for service by the sheriff. No attorney needed. The defendant (a major corporation) has to send a representative to appear in person. Most of the time they'd rather settle than send someone to small claims court over a few thousand dollars.

VK
vanessa_k_13

If you're thinking about an S-Corp election, run the numbers first. It only makes sense once your net income is above ~$40-50k. Below that, the payroll costs eat up any tax savings.