How to Get 501(c)(3) Status for a Community Garden: Forms, Steps and Yearly Filings

Last verified: October 29, 2026 · Written by the UrbanAgLaw.org Editorial Team

Vegetable beds with row covers and young plants

Quick answer: To get federal tax-exempt status as a charity, a garden group first forms a legal entity (usually a nonprofit corporation under state law), writes governing documents that limit its purposes and say what happens to its assets if it closes, and then applies to the IRS online through Pay.gov on Form 1023 or the shorter Form 1023-EZ. The 1023-EZ is for small organizations; the IRS has listed limits of $50,000 in annual gross receipts and $250,000 in assets. After approval you file an annual return every year, and the smallest organizations file Form 990-N. Check current fees and timing on the IRS site before you apply.

The steps in order

Is your purpose charitable or educational?Write what you will do in plain terms (food access, education, neighborhood improvement). No: another type of exemption or no exemption may fit. Yes: go to step 2.
Have you formed a legal entity under state law?Most groups file articles of incorporation as a nonprofit corporation. No: do this first and ask your state agency about filing. Yes: go to step 3.
Do your articles limit your purposes and say where assets go if you dissolve?No: fix them before you apply. Yes: go to step 4.
Do you have an employer identification number (EIN), a board and bylaws?No: get them. Yes: go to step 5.
Do you qualify for Form 1023-EZ?Check the IRS eligibility worksheet. Yes: use the EZ. No: use Form 1023. Either way, file online at Pay.gov and pay the fee.
Did the IRS send a determination?Yes: keep the letter, set up bookkeeping, and calendar your yearly filing. No: follow up through the IRS.

What your governing documents must say

The IRS applies an organizational test to the document that creates your group, for example articles of incorporation. Based on IRS guidance and the regulations, the articles must limit the organization to purposes listed in section 501(c)(3), must not authorize more than an insubstantial amount of other activity, and must make sure assets go to an exempt purpose if the organization dissolves. The dissolution rule can be met by a clause in the articles or by state law, but an organization fails if its documents or state law send assets to members. A lawyer or a state nonprofit support group can supply model language. We summarized this from secondary descriptions of IRS guidance and did not open the IRS page, so read the IRS instructions to Form 1023 before you draft.

Form 1023 or Form 1023-EZ?

The two IRS application forms
Point	Form 1023-EZ	Form 1023
Who it is for	Small organizations that pass the IRS eligibility worksheet; the IRS has listed annual gross receipts of $50,000 or less and assets of $250,000 or less.	Everyone else, and anyone who does not pass the worksheet.
How to file	Online at Pay.gov.	Online at Pay.gov.
User fee	$275, according to the IRS page we found.	$600, according to the same page.
What to confirm	Current eligibility rules and fee on the IRS user fee page.	Current fee and what to attach.

The IRS says applications for recognition of exemption must be submitted electronically at Pay.gov (page updated July 21, 2026). The amounts above came from a search result that quoted an IRS page, and the IRS user fee page itself did not open for us, so confirm them before you pay. We could not verify how long the IRS takes; the IRS publishes current processing information on its site.

Community garden beds and a polytunnel with houses in the background — Your application describes what the garden actually does.

After approval: yearly filing

Each year you must file one of three returns. The IRS says organizations whose gross receipts are normally $50,000 or less may file Form 990-N, an online postcard, instead of Form 990 or 990-EZ (page updated October 9, 2026). Larger organizations file the longer forms.

Form 990-N rules from the IRS
Point	Rule
Receipts test	First year: $75,000 or less. Years 1 to 3: average of $60,000 or less over the first two years. Year 3 on: average of $50,000 or less over the previous three years.
Due date	15th day of the 5th month after your tax year ends (May 15 for a calendar year). It cannot be filed before the year ends.
Account	Login.gov or ID.me, using the same email as your IRS account; no paper form, not from a phone or tablet.
Missed filings	No late-filing penalty, but three consecutive years without a return ends tax-exempt status automatically.

Selling produce may create unrelated business income, which has its own form (Form 990-T, required at $1,000 or more of gross income from an unrelated business, according to the IRS). See the overview of nonprofit gardens for how it works. Many states also have their own annual report, charitable solicitation registration and tax exemption applications; we did not verify them state by state.

Common questions before you apply

Get answers to these first:

Who sits on the board, and are they related to each other or paid?
Will anyone, including founders, receive money or crops beyond reasonable pay for work?
Will you sell produce, and is that part of your mission?
What happens to land, tools and funds if the group closes?
Do you need exemption now, or could a fiscal sponsor serve you for the first years?

Frequently asked questions

How much does it cost to apply for 501(c)(3) status?

The IRS fee has been listed at $275 for Form 1023-EZ and $600 for Form 1023. Confirm the current fee on the IRS site, and add state incorporation and any lawyer costs.

How long does it take to get 501(c)(3) status?

We could not verify current timing. Check the IRS processing information, and plan for weeks or months rather than days.

Can a community garden use Form 1023-EZ?

If it passes the IRS eligibility worksheet. Limits the IRS has listed are $50,000 annual gross receipts and $250,000 in assets.

Do we need a lawyer?

Not by law, but many groups use one or a nonprofit support organization to draft articles and bylaws, because mistakes in the governing documents can delay approval.

Where do I file Form 990-N?

Online, through the IRS e-Postcard system, with a Login.gov or ID.me account.

What if we miss the filing?

There is no late fee, but three missed years in a row automatically ends your exemption, so file every year.

Can we charge membership fees or plot fees?

Often yes, but how they are treated for tax depends on your purpose and structure. Ask an accountant.

What is the difference between starting a nonprofit and using a fiscal sponsor?

A fiscal sponsor is an existing 501(c)(3) that houses your project. You skip your own application but give up some control; see our guide.

Official sources

Internal Revenue Service: Applying for tax-exempt status (page updated July 21, 2026)
Internal Revenue Service: Annual electronic filing requirement for small exempt organizations, Form 990-N (page updated October 9, 2026)
Internal Revenue Service: Unrelated business income tax (page updated June 27, 2026)
Internal Revenue Service: Instructions for Form 1023-EZ (January 2025 edition; not opened directly, see above)
Treasury Regulation section 1.501(c)(3)-1 (organizational test; referenced in secondary summaries, not opened directly)

This page is general information, not legal or tax advice. Fees and rules change; confirm them on the IRS site and with a nonprofit lawyer before you apply.