Charities and Nonprofits

Welcome to the Internal Revenue Service's guide on charities and nonprofits. In this article, we will provide you with information on tax-exempt organizations, annual filings and forms, obtaining an Employer Identification Number (EIN), and different types of exempt organizations.

Tax-Exempt Organization Search (TEOS)

The Tax-Exempt Organization Search (TEOS) tool allows you to find information on an organization's status and filings. This tool can be used to verify the tax-exempt status of an organization and access their filed documents.

Annual Filing & Forms

If you are a tax-exempt organization, you are required to file annual reports and forms. The 990-series forms are used for this purpose. It is important to understand the requirements and tips to help you complete your annual reporting and filing accurately.

Employer Identification Number (EIN)

Before applying for tax-exempt status and filing returns, you need to obtain an Employer Identification Number (EIN). However, it is crucial to ensure that your organization is legally formed before applying for an EIN.

Tax Exemption

There are different types of tax-exempt organizations. Let's explore some of them:

Charitable Organizations — IRC 501(c)(3)

Charitable organizations are organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational, or other specified purposes. These organizations play a vital role in serving the community and making a positive impact.

Churches & Religious Organizations — IRC 501(c)(3)

Churches and religious organizations can also qualify for exemption from federal income tax under Section 501(c)(3). These organizations provide spiritual guidance and support to their members and the community.

Private Foundations — IRC 501(c)(3)

Private foundations typically have a single major source of funding, often from one family or corporation. These foundations primarily make grants to other organizations rather than directly operating charitable programs.

Political Organizations

Political organizations are organized and operated primarily for the purpose of accepting contributions or making expenditures, or both, for an exempt function. These organizations play a significant role in the political landscape.

Other Nonprofits

Apart from the organizations mentioned above, there are other types of nonprofits that may qualify for exemption under subsections other than Section 501(c)(3). These include social welfare organizations, civic leagues, social clubs, labor organizations, and business leagues.

We hope this guide has provided you with valuable information on charities and nonprofits. If you have any further questions or need assistance, please feel free to reach out to us.