Charitable Organizations are required to file Form 1023 with the IRS to recognize their tax-exempt status. The organization will be considered as tax-exempt only upon the approval of the Form 1023 by the IRS.
The organization will receive a determination letter after the IRS has approved the tax-exempt status. This determination letter describes the tax-exempt status of the organization. The organizations that are approved as tax-exempt organizations have to file the Form 990 series every year to retain their tax-exempt status.
All organizations except churches, auxiliaries, and affiliations of churches, and organizations with gross receipts less than $5000 for a tax year are required to be recognized as a tax-exempt organization by the IRS.