501(c)(3) Recognition
Justice Access Foundation has applied to the Internal Revenue Service for recognition as an organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code. The application was submitted on IRS Form 1023 along with supporting governing documents. The application is currently pending IRS review.
JAF’s federal Employer Identification Number (EIN) is 42-2498493.
If recognition is granted, the IRS will issue a formal determination letter. Section 501(c)(3) status will mean:
- JAF is exempt from federal income tax on income derived from its charitable activities
- Contributions to JAF are deductible to donors as charitable contributions, subject to applicable limitations, generally retroactive to JAF’s date of incorporation
- JAF is subject to regulatory requirements concerning private benefit, private inurement, political activity, and lobbying
During the pending period, JAF operates in conformity with all 501(c)(3) requirements. If the application is denied, contributions made during the pending period may not be deductible. Donors should consult their own tax advisors regarding the deductibility of their contributions.
Public Charity vs. Private Foundation
JAF has applied for classification as a public charity, not a private foundation. This distinction, once recognized by the IRS, is legally significant:
| Characteristic | Public Charity (JAF) | Private Foundation |
|---|---|---|
| Primary funding source | Broad public support | Typically one or few donors |
| IRS oversight regime | Standard 501(c)(3) rules | Enhanced excise tax rules (IRC §§ 4940–4946) |
| Required annual filing | Form 990 | Form 990-PF |
| Donor deductibility (cash) | Up to 60% of AGI | Up to 30% of AGI |
| Self-dealing rules | Conflict of interest policy | Strict excise tax prohibition |
| Mandatory distributions | Not required | Minimum 5% annual distribution |
JAF’s public charity classification is maintained through ongoing compliance with the IRS public support test.
Public Support Test
JAF’s public charity status under Section 509(a)(1) requires compliance with the public support test under Section 170(b)(1)(A)(vi). This test requires that:
- At least one-third (33.3%) of JAF’s total support over a rolling five-year measurement period is received from governmental units, publicly supported organizations, and individual donors
- No single donor or related group of donors constitutes more than 2% of total support in the public support numerator (excess amounts are excluded from the numerator but retained in the denominator)
- Large donations from single sources are included in total support but limited in the qualifying public support calculation
JAF monitors its public support ratio on an ongoing basis and reports the calculation in its annual Form 990. The Board has adopted a policy target of maintaining public support at or above one-third of total support, with no single source contributing more than 70% of the public support figure.
IRS Form 1023
JAF filed IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3), to obtain its tax-exempt status determination. The Form 1023 application includes:
- JAF’s Articles of Incorporation and Bylaws
- A narrative description of charitable activities
- Financial projections for the initial organizational period
- Governance documentation, including the Conflict of Interest Policy
- A statement of the charitable class and organizational mission
Once issued, the IRS determination letter confirming JAF’s 501(c)(3) status will be made available for public inspection in accordance with IRC Section 6104.
Form 990 Transparency
As a public charity, JAF files IRS Form 990 annually, disclosing:
- Total revenues by source category
- Total expenditures by program services, management and general, and fundraising
- Officer and director compensation (JAF: none)
- Key organizational transactions and related party disclosures
- Public support ratio and five-year calculation
- Governance policies in effect
JAF’s Form 990 filings are available for public inspection at JAF’s principal office and through the IRS public disclosure portal. Filings are also submitted to the California Attorney General as required by California law.
Asset Dissolution Clause
JAF’s Articles of Incorporation contain a dissolution clause that complies with California nonprofit corporation law and IRS requirements for 501(c)(3) organizations. Under this clause:
- Upon dissolution, after payment of all lawful debts and liabilities, all remaining assets must be distributed to one or more organizations that are:
- Recognized as 501(c)(3) public charities by the IRS, or
- Operated exclusively for charitable, educational, or other public purposes under Section 501(c)(3)
- No assets may revert to founders, directors, officers, employees, or private individuals
- Distribution requires notice to and, where required, approval by the California Attorney General and the Superior Court
No Private Inurement
Section 501(c)(3) prohibits the use of a charitable organization’s net earnings to benefit any private shareholder or individual. JAF strictly complies with this prohibition:
- No director, officer, or employee receives compensation from JAF
- No financial benefit, discount, or other consideration is provided to any director, officer, or related party beyond documented reimbursement of legitimate organizational expenses authorized by the board
- All transactions involving any related party require full board disclosure and approval
- The annual Form 990 contains a certification by the responsible officer that no private inurement has occurred during the reporting period