2 critical items must be resolved before filing. The Part VII foundation classification must be verified in Pay.gov and the contact person authority must be corrected. All other items are confirmed or pending portal verification.
Critical — fix before submitting
2 remaining
Part VII — foundation classification box must be verified in Pay.gov
The 509(a)(1) / 170(b)(1)(A)(vi) public charity box appeared selected in a Pay.gov screenshot but does not appear selected in the V3 PDF. Log into Pay.gov and confirm the selection is saved before submitting. If this box is blank, the IRS defaults to private foundation status — catastrophic for a grant-funded nonprofit. This is the single most important item to confirm before filing.
Log into Pay.gov and verify now
Part I — Katherine cannot legally be listed as the contact person
The form requires the contact to be an officer, director, trustee, or authorized representative. Per CAN's bylaws (Section 7.5.4), Katherine holds none of those roles as Executive Director.
Option 1: Change the contact to Amy Quandt as Chair — simplest fix.
Option 2: File Form 2848 naming Katherine as CAN's authorized representative and upload it with the application.
Option 1: Change the contact to Amy Quandt as Chair — simplest fix.
Option 2: File Form 2848 naming Katherine as CAN's authorized representative and upload it with the application.
Fix before filing
Verify in Pay.gov portal
2 remaining
Part IV Lines 9c, 9d, 9f — confirm whether portal displays these questions
These sub-questions are conditionally displayed in Pay.gov based on upstream answers. Log into Pay.gov and check whether Lines 9c, 9d, and 9f are visible.
If they appear: Answer "Yes" for 9c and 9d (one sentence each referencing the Line 9 narrative) and "No" for 9f.
If they do not appear: No action needed — the portal has determined they are not required for CAN's configuration.
If they appear: Answer "Yes" for 9c and 9d (one sentence each referencing the Line 9 narrative) and "No" for 9f.
If they do not appear: No action needed — the portal has determined they are not required for CAN's configuration.
Check portal — may not be required
Part VI-A Line 7 — $5K / $10K / $10K revenue source not itemized in Question 25
Line 7 shows these amounts across all three years but Question 25 never explains what they represent. The IRS will ask.
If intentional: Add two sentences in Question 25 identifying the source — such as event sponsorship income or in-kind contributions.
If a data entry error: Zero out Line 7 and confirm the amount belongs on Line 1 (grants) or Line 9 (program service revenue) instead.
If intentional: Add two sentences in Question 25 identifying the source — such as event sponsorship income or in-kind contributions.
If a data entry error: Zero out Line 7 and confirm the amount belongs on Line 1 (grants) or Line 9 (program service revenue) instead.
Clarify with Katherine or zero out
Ask Katherine before filing
Does CAN currently hold any assets, cash, or liabilities?
The balance sheet shows all zeros as of 12/31/2026. This is correct only if CAN has not received any funds, opened a bank account, or incurred any payables as a standalone entity. We are four months into CAN's first tax year. If CAN has received donations, a grant advance, or owes anything to any vendor, those amounts must appear on the balance sheet before filing. A zero balance sheet filed in late April 2026 will prompt an IRS question if CAN has in fact been operating with funds during this period.
At time of filing
Part X — Amy Quandt signs as Chair and checks the perjury declaration
The signature block is currently blank — expected at this stage. At the time of submission, Amy Quandt must sign as Chair and check the perjury declaration checkbox. Pay.gov will not accept the filing without both. Confirm Amy is available and prepared to sign before initiating the final Pay.gov submission session.
Amy Quandt signs as Chair
Confirmed correct — no changes needed
✓
Show 6 items confirmed correct in V3
⌄
Part V Line 7 — Sage's pro bono role does not require disclosure
Line 7 asks about management by someone other than CAN's own employees under a compensated arrangement. Because Sage is providing services entirely pro bono — with no compensation, no invoice, and no formal written engagement — there is no reportable management arrangement. "No" is correct.
Important: Do not formalize a written Sage engagement agreement before the 1023 determination letter is received. Doing so would change this analysis and require disclosure. Formalize in writing after approval.
No change needed
Part IV Line 15 — Schedule H correctly answered "No"
Schedule H is triggered by scholarships, fellowships, or educational grants to individuals for study purposes. CAN's farmer payments are conservation practice implementation subsidies — cost-share payments tied to on-the-ground outcomes like windbreaks and silvopasture. These are charitable financial assistance tied to a conservation outcome on real property, not scholarships to individuals. "No" is correct and Schedule H does not apply.
Future note: If CAN ever creates a formal farmer fellowship, training stipend, or travel grant for study purposes, that would trigger Schedule H. The current cost-share model does not.
No change needed
Part IV narrative — all 6 required IRS elements addressed per program area
V3 now describes what the activity is, who conducts it, where it occurs, the percentage of time and expenses allocated, how it is funded, and how it furthers CAN's exempt purposes — for all five program areas. This is the most heavily reviewed section of the full 1023 and the leading cause of IRS follow-up letters in new organization applications.
Resolved in V3
Part V Line 3 — grant-based bonus structure removed
Prior draft tied employee bonuses to a percentage of awarded grant amounts — a potential private inurement concern. V3 correctly frames bonuses as discretionary and performance-based, approved in advance by disinterested board members using comparability data from similarly situated nonprofits.
Resolved in V3
Part IV Line 4 — unrelated business income correctly zeroed out
CAN's projected activities are mission-related. Prior draft showed phantom UBI figures that invited unnecessary IRS scrutiny. V3 correctly shows $0 across all three years.
Resolved in V3
Financial projection errors and "1023-EZ" reference corrected
Year 3 itemization math fixed. The erroneous "IRS Form 1023-EZ" reference corrected to "Form 1023." Professional fees updated to $2,500 / $3,500 / $5,000. Balance sheet year-end field now shows 12/31/2026.
Resolved in V3