Most delays are not rejections. They are avoidable gaps: a step done out of order, a document that does not exist yet, or a status confused with another. These are the ones that recur.
← All chamber approval guides · Sources last verified 2026-08-14
An EIN is a federal tax identification number. It says nothing about exemption. Organizations regularly believe they are "IRS approved" because they hold an EIN, then discover otherwise when a sponsor or bank asks for a determination letter.
Being a nonprofit corporation in your state and being recognized as tax-exempt federally are separate statuses granted by separate bodies. Neither implies the other, and state tax exemption is frequently a third, separate application.
Bylaws downloaded and adopted without review tend to surface later as a governance problem — an unworkable quorum, no removal procedure, membership classes that do not match the dues actually charged. They also feed directly into a Form 1024 application and any accreditation review.
This is the most consequential error on the list. An organization that fails to file its required annual return for three consecutive years automatically loses tax-exempt status, with revocation effective on the filing due date of the third consecutively missed year. Small organizations with gross receipts normally of $50,000 or less can generally satisfy the requirement with Form 990-N, the electronic postcard — a filing that takes minutes and whose omission is fatal.
A 501(c)(6) is not a charity, and contributions to it are not deductible as charitable contributions. Dues may be deductible as a business expense subject to limits, including limits relating to lobbying. Describing dues as a charitable donation in marketing material is both inaccurate and a problem for the members who rely on it.
A full CPA financial audit is a minimum requirement for accreditation, and the review examines several years of governance, finance, and program evidence. Chambers that start collecting that material when they decide to apply have already added months to a six-to-nine-month process.
Questions
Most commonly because the supporting documents are incomplete — no adopted bylaws, a vague description of activities, or missing financial data and budgets. Form 1024 must also be submitted electronically through Pay.gov with the user fee paid; an incomplete submission cannot proceed.
Yes. An organization that fails to file its required annual return for three consecutive years automatically loses exempt status, effective on the filing due date of the third consecutively missed year.
No. An EIN is a federal tax identification number and carries no exemption. Recognition of exemption is a separate determination, generally requested on Form 1024.
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Sources
Every regulatory statement in this section is drawn from a primary source. Last verified 2026-08-14.
This is general information, not legal or tax advice. Requirements vary by state and by organization, and federal forms, fees, and thresholds change. Confirm your own position against the primary sources above and with a qualified attorney or tax professional before acting. Chamber.Support is an independent software provider and is not affiliated with the Internal Revenue Service or the U.S. Chamber of Commerce.
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