Client Portal — Sage Strategy Partners

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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.

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.

Check portal — may not be required

Part VI-A Line 7 — $5K / $10K / $10K revenue source not itemized in Question 25

Part VI-A Line 7 shows $5,000 / $10,000 / $10,000 across all three years but Question 25 (the itemized financial narrative) does not identify what this revenue represents. The IRS will ask. Looking at the financial data, Line 1 (grants) and Line 9 (program service revenue from farmer workshops and curriculum sales) are both accounted for — so Line 7 is a separate, unidentified income stream.

If intentional: Add two sentences in Question 25 identifying the source — for example, event sponsorship income, merchandise sales, or in-kind contributions valued at fair market value.
If a data entry error: Zero out Line 7 and confirm whether the amount belongs on Line 1 (grants/contributions) or Line 9 (program service revenue) instead.

Note also: Line 14 (Fundraising expenses) shows $4,000 in Year 1 only and $0 in Years 2 and 3. If CAN plans any fundraising activity in Years 2 or 3, those costs should appear. If fundraising truly ends after Year 1, no change is needed — but be prepared to explain this if the IRS asks.

Clarify with Katherine before filing

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

Financial projection math reconciled across all lines. The erroneous "IRS Form 1023-EZ" reference corrected to "Form 1023." Line 22 Professional fees updated to $2,500 / $3,500 / $5,000. Line 1 grants: $60,000 / $72,000 / $160,000. Line 9 program service revenue: $10,000 / $50,000 / $63,000. Total revenue: $75,000 / $132,000 / $233,000. Total expenses: $39,800 / $58,800 / $95,500. Balance sheet year-end field now shows 12/31/2026. Note: Line 7 revenue source and Line 14 fundraising remain open items requiring Katherine's confirmation before filing.

Resolved in V3

↓ What was improved in V3 — and why it matters ⌄

Part IV narrative substantially expanded

V3 now addresses all 6 required IRS elements — what the activity is, who conducts it, where it occurs, percentage of time and expenses, how it is funded, and how it furthers the exempt purpose — for each of CAN's 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.

Grant-based bonus structure removed

The prior draft tied employee bonuses to a percentage of awarded grant amounts — a potential private inurement concern that could jeopardize CAN's exempt status. V3 correctly frames bonuses as discretionary and performance-based, approved in advance by disinterested board members using comparability data from similarly situated nonprofits.

Unrelated business income zeroed out

Prior drafts projected UBI across all three years for activities CAN has no concrete plan to conduct. Phantom UBI invites IRS scrutiny of a business activity that does not exist. V3 correctly shows $0 across all three years, consistent with CAN's mission-related program model.

Financial projection errors corrected

Year 3 itemization math fixed and figures reconciled across all lines. The erroneous "IRS Form 1023-EZ" reference corrected to "Form 1023." Professional fees (Line 22) updated to $2,500 / $3,500 / $5,000 to reflect realistic accounting and legal costs. Revenue projections now show: Line 1 grants at $60,000 / $72,000 / $160,000; Line 9 program service revenue at $10,000 / $50,000 / $63,000 from farmer workshops and curriculum sales; Total revenue at $75,000 / $132,000 / $233,000. Balance sheet year-end field now shows 12/31/2026. Two items remain open: Line 7 revenue source unidentified, and Line 14 fundraising expenses zero in Years 2–3.

Schedule H inconsistency resolved

The prior draft marked Part IV Line 15 (scholarships and educational grants) as "Yes" but left Schedule H entirely blank — a direct contradiction the IRS would flag. V3 correctly answers "No" because CAN's farmer payments are conservation practice cost-share distributions tied to on-the-ground outcomes, not individual educational grants that trigger Schedule H.

Part V compensation governance strengthened

V3 confirms that officers and directors are uncompensated at formation, that any future compensation requires advance board approval by disinterested members using comparability data, and that all compensation decisions are documented in writing. The conflict of interest policy adopted at the founding board meeting is confirmed as consistent with the IRS Appendix A sample.