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Charities & Nonprofits

EXEMPT ORGANIZATION TYPES

Charitable Organizations

Organizations organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, educational, or other specified purposes and that meet certain other requirements are tax exempt under Internal Revenue Code Section 501(c)(3).

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Churches and Religious Organizations

Churches and religious organizations, like many other charitable organizations, may qualify for exemption from federal income tax under Section 501(c)(3).

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Private Foundations

Every organization that qualifies for tax-exempt status under Section 501(c)(3) is classified as a private foundation unless it meets one of the exceptions listed in Section 509(a). Private foundations typically have a single major source of funding (usually gifts from one family or corporation rather than funding from many sources) and most have as their primary activity the making of grants to other charitable organizations and to individuals, rather than the direct operation of charitable programs.

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Political Organizations

A political organization subject to Section 527 is a party, committee, association, fund or other organization (whether or not incorporated) organized and operated primarily for the purpose of directly or indirectly accepting contributions or making expenditures, or both, for an exempt function.

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Other Nonprofits

Organizations that meet specified requirements may qualify for exemption under subsections other than 501(c)(3). These include social welfare organizations, civic leagues, social clubs, labor organizations and business leagues.

ANNUAL FILING AND FORMS

In general, exempt organizations are required to file annual returns, although there are exceptions. If an organization does not file a required return or files late, the IRS may assess penalties. In addition, if an organization does not file as required for three consecutive years, it automatically loses its tax-exempt status.

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Effective for tax years beginning after July 1, 2019, the Taxpayer First Act, Pub. L. No. 116-25 Section 2301, requires organizations exempt from taxation under section 501(a) to file their annual Form 990 and Form 990-PF returns electronically, unless covered by one of the exceptions listed in the form instructions. Form 990-EZ filers are required to file electronically for tax years ending July 31, 2021, and later. IRS: Recent legislation requires tax exempt organizations to e-file forms contains a summary of e-filing requirements.

The IRS sends back Form 990 series returns filed on paper – and rejects electronically filed returns – when they are materially incomplete or the wrong return. If we send back your organization's return, follow the instructions in the accompanying letter and on Filing procedures – incomplete returns.

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The most common errors causing the return of a Form 990 series returns are missing or incomplete schedules.

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Information Reporting

tarting tax year 2023, if you have 10 or more information returns, you must file them electronically. Review A guide to information returns and e-file information returns Form 1099 with the Information Return Intake System (IRIS) for tax year 2022 and later.

TAX EXEMPT ORGANIZATION SEARCH

Tax Exempt Organization Search Tool

You can check an organization's eligibility to receive tax-deductible charitable contributions (Pub 78 Data). You can also search for information about an organization's tax-exempt status and filings:

  • Form 990 Series Returns

  • Form 990-N (e-Postcard)

  • Pub. 78 Data

  • Automatic Revocation of Exemption List

  • Determination Letters

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Tax Exempt Organization Search Bulk Data Downloads

You can download the latest data sets of information about tax-exempt organizations:

  • Pub. 78 Data

  • Automatic Revocation of Exemption List

  • Form 990-N (e-Postcard)

  • Form 990 Series

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Cumulative Data Files

he Exempt Organizations Business Master File Extract has information about organizations that have received a determination of tax-exempt status from IRS. This information is available by state and region for downloading.

EDUCATION SESSIONS FROM IRS

IRS Exempt Organizations offers specialized education programs to help exempt organizations understand their tax responsibilities.

  • Webinars - Review archived EO tax law programs from your computer

  • Virtual workshops - Small and Medium-Sized Exempt Organizations - online programs on exempt organizations tax issues

  • Nationwide Tax Forums - Latest word from IRS leadership and other experts in the exempt organizations tax law field

  • Requesting Educational Services - How to request speakers for your organization’s events

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