501(c)3 - Non-Profit Status

The Form 1023-EZ is a streamlined, digital application used by smaller organizations to apply for federal income tax exemption under Section 501(c)(3). It is designed to be significantly faster and less expensive than the full Form 1023, making it an ideal choice for the USTA’s initial launch phase.

Key Features of Form 1023-EZ

• Eligibility Threshold: To use this form, an organization must generally expect to raise less than $50,000 in gross receipts in each of its first three years.

• Cost Efficiency: The user fee for filing the EZ version is $275, which is notably cheaper than the standard application fee.

• Speed of Approval: Because the form is shorter and submitted online, it typically grants full 501(c)(3) status much more quickly than the traditional paper-based process.

• Purpose Alignment: It requires the organization to attest that it is organized and operated exclusively for exempt purposes, such as education or the advancement of the arts.

Strategic Use for the USTA

Within the USTA’s Year One Roadmap, the Form 1023-EZ serves as a critical tool for solidifying its legal identity as a public charity:

Requirement

USTA Strategy for Compliance

Public Support

Proving a "broad base" of interest through 100+ unique members rather than a single wealthy benefactor.

Educational Mission

Positioning "gaming" as a tool for vocational development, such as Maker-Gamer Certifications.

Governance

Establishing a Board of Directors with staggered terms to ensure the organization is not a "private club".

Limitations and Risks

While the EZ form is simpler, the IRS still requires rigorous adherence to non-profit standards. For the USTA, this means ensuring that recreational gaming remains an "insubstantial" part of activities compared to its primary educational goals in game design and prototyping. Furthermore, if the organization experiences rapid growth and exceeds the $50,000 threshold, it must maintain meticulous financial records to satisfy the Public Support Test.

To ensure your 501(c)(3) application via Form 1023-EZ is successful, you must transition your language from "recreational" to "educational and professional development." The IRS views "connecting people for fun" as a social club (501(c)(7)), but "connecting people for the advancement of an art form" as a charity.

Based on the USTA's strategic documents, here is how to draft a Purpose Statement that satisfies the IRS while staying true to your goal of connecting the community.

Draft Purpose Statement for Form 1023-EZ

"The United States Tabletop Association (USTA) is organized exclusively for educational and charitable purposes. Our mission is to advance the art and science of tabletop game design and to provide public education regarding the cognitive and social benefits of structured play.

To achieve this, the Association:

1. Facilitates Vocational Development: We connect aspiring game designers with a national network of playtesters to improve the quality, safety, and merchantability of tabletop products.

2. Conducts Public Workshops: We host 'Design Clinics' and 'Maker-Gamer' certification programs that teach rapid prototyping, 3D printing, and iterative design logic.

3. Establishes Professional Standards: We manage a national system of sanctioned events to ensure a safe, inclusive, and standardized environment for the study and practice of game mechanics."

Why this works for the "EZ" Form:

• The "Maker-Gamer" Pivot: By emphasizing the creation (3D printing, prototyping) over just the playing, you move into the "Instruction in Arts and Crafts" category, which is a safe harbor for 501(c)(3) status.

• The "Playtest" Distinction: Instead of "hosting a game night," you are "facilitating a playtest session." One is a party; the other is a critical step in the research and development (R&D) of a creative work.

• Public Support: The Form 1023-EZ requires you to attest that you aren't a private foundation. By framing your "connections" as a "National Player Network," you demonstrate the broad public support the IRS requires.

Next Steps for Your Filing:

1. Identify your NTEE Code: You will likely use A25 (Arts Education) or G84 (Games and Hobby Clubs - Educational focus).

2. The $50,000 Cap: Ensure your projected budget for the next three years stays under this limit to remain eligible for the EZ form.

3. Bylaws Check: Ensure your bylaws include the "Dissolution Clause" mentioned in your documents, stating that if the USTA closes, all assets go to another charity.