How can I access IRS nonprofit organization data. What types of tax-exempt organizations exist. How do I download bulk data on tax-exempt organizations. What information is available in the IRS nonprofit database. How does automatic revocation of tax-exempt status work.
Understanding the IRS Tax Exempt Organization Search Bulk Data Downloads
The Internal Revenue Service (IRS) provides valuable resources for those seeking information about nonprofit organizations and their tax-exempt status. One such resource is the Tax Exempt Organization Search Bulk Data Downloads, which allows users to access comprehensive datasets containing crucial information about tax-exempt organizations and their filings.
These datasets are invaluable for researchers, policymakers, and individuals interested in the nonprofit sector. They offer insights into organizations’ eligibility for tax-deductible contributions, revocation of tax-exempt status, and various filings made by nonprofit entities.
How to Download and Use IRS Nonprofit Data
To access the IRS nonprofit data, follow these steps:
- Select the desired dataset from the available options.
- Download the compressed zip file (note that it may be quite large).
- Extract the delimited text file from the zip file.
- Open the file using word processing software for proper formatting.
It’s important to note that these datasets are updated monthly, ensuring that users have access to the most current information available.
Exploring the Publication 78 Data: Tax-Deductible Charitable Contributions
The Publication 78 Data is a crucial resource for those seeking information about organizations eligible to receive tax-deductible charitable contributions. This dataset provides a comprehensive list of such organizations, making it easier for donors to verify the tax-deductibility of their contributions.
Key Features of Publication 78 Data
- Format: Pipe-Delimited ASCII Text
- Last Updated: July 12, 2021
- Contains official business names registered with the IRS
Why isn’t my organization listed in Publication 78 Data? If an organization uses a “doing business as” name, it may not appear in this listing. Only the official business name registered with the IRS is included.
Understanding Automatic Revocation of Tax-Exempt Status
The Automatic Revocation of Exemption List is a critical dataset that provides information about organizations whose federal tax exemption has been automatically revoked. This revocation occurs when an organization fails to file a Form 990-series annual return or notice for three consecutive tax years.
Impact of COVID-19 on Revocation Dates
Due to the COVID-19 pandemic, the IRS extended filing deadlines for returns and notices due between April 1 and July 14, 2020, to July 15, 2020. This extension affected the revocation dates for some organizations:
- Organizations that failed to file for two previous years and did not file by July 15, 2020, automatically lost their tax-exempt status.
- These organizations may appear on the auto-revocation list with a Revocation Date between April 1 and July 14, 2020.
- However, the actual Revocation Date for these organizations is July 15, 2020.
How can an organization reinstate its tax-exempt status after automatic revocation? Organizations can request reinstatement by following the procedures outlined in the IRS guidance “Automatic Revocation – How to Have Your Tax Exempt Status Reinstated.”
Form 990-N (e-Postcard) and Form 990 Series Data
The IRS provides access to the most recent e-Postcard filings (Form 990-N) and Form 990 Series data. These datasets offer valuable insights into the financial activities and governance of nonprofit organizations.
Form 990-N (e-Postcard) Data
- Format: Pipe-Delimited ASCII Text
- Latest data posting: July 26, 2021
Form 990 Series Data
- Format: XML, Individual PDF Files
- Latest data posting: July 26, 2021
What information can be found in Form 990 filings? Form 990 filings provide detailed information about an organization’s mission, programs, finances, and governance structure. This data is crucial for transparency and accountability in the nonprofit sector.
Types of Tax-Exempt Organizations Recognized by the IRS
The Internal Revenue Code (IRC) recognizes various types of tax-exempt organizations, each serving different purposes and subject to specific regulations. Understanding these categories is essential for both nonprofit leaders and donors.
501(c)(3) Organizations: Charitable, Religious, and Educational Entities
501(c)(3) organizations are perhaps the most well-known category of tax-exempt entities. They include:
- Charitable organizations
- Religious institutions
- Educational institutions
- Scientific organizations
- Literary organizations
What makes 501(c)(3) organizations unique? These organizations are eligible to receive tax-deductible contributions from donors, making them particularly attractive for philanthropic activities.
Other Common Types of Tax-Exempt Organizations
Beyond 501(c)(3) entities, the IRS recognizes several other categories of tax-exempt organizations:
- 501(c)(4): Social welfare organizations
- 501(c)(5): Labor organizations
- 501(c)(6): Business leagues and trade associations
- 501(c)(7): Social clubs
- 501(c)(8) and 501(c)(10): Fraternal societies
- 501(c)(19) and 501(c)(23): Veterans’ organizations
Each of these categories has specific requirements and limitations regarding their activities and tax treatment.
Navigating the Life Cycle of Tax-Exempt Organizations
The IRS provides comprehensive guidance on the life cycle of various tax-exempt organizations. This information is crucial for understanding the regulatory requirements and best practices for different types of nonprofits.
Key Life Cycle Stages for Tax-Exempt Organizations
- Starting Out: Formation and application for tax-exempt status
- Required Filings: Annual information returns and notices
- Ongoing Compliance: Maintaining tax-exempt status and adhering to regulations
- Significant Events: Handling changes in structure or operations
- Termination: Proper procedures for dissolving the organization
How does the life cycle differ for various types of tax-exempt organizations? While the general stages are similar, specific requirements and regulations may vary based on the organization’s classification under the Internal Revenue Code.
Leveraging IRS Resources for Nonprofit Education and Compliance
The IRS offers a wealth of resources to help nonprofit organizations understand their obligations and maintain compliance with tax regulations. These resources are invaluable for both new and established organizations.
Interactive Training for Small to Mid-Size Tax-Exempt Organizations
The IRS provides an online Small to Mid-Size Tax Exempt Organization Workshop, which includes 10 courses covering various aspects of nonprofit management and compliance. This interactive training offers insights into:
- Benefits of tax-exempt status
- Limitations on activities
- Reporting requirements
- Best practices for governance
Why is ongoing education important for nonprofit organizations? Staying informed about tax regulations and best practices helps organizations maintain their tax-exempt status and operate effectively in service of their missions.
Additional IRS Resources for Nonprofits
Beyond the interactive training, the IRS offers a variety of resources to support nonprofit organizations:
- Publication 557: Detailed guide on tax-exempt status
- Form 1023 and Form 1024 instructions: Guidance on applying for tax-exempt status
- EO Update newsletter: Regular updates on tax-exempt organization issues
- StayExempt.irs.gov: Educational website with videos and mini-courses
These resources help organizations navigate the complex landscape of nonprofit tax law and maintain compliance with IRS regulations.
Utilizing the Nonprofit Explorer for Enhanced Transparency
The Nonprofit Explorer is a valuable tool that complements the IRS datasets, offering users an intuitive interface to search and analyze information about tax-exempt organizations. This resource enhances transparency in the nonprofit sector by making complex financial data more accessible to the public.
Key Features of the Nonprofit Explorer
- Searchable database of nonprofit organizations
- Detailed financial information from Form 990 filings
- Historical data to track changes over time
- Comparisons between similar organizations
How can researchers and donors use the Nonprofit Explorer effectively? By leveraging this tool, users can gain insights into an organization’s financial health, program effectiveness, and governance practices, aiding in decision-making for funding and collaboration.
Enhancing Nonprofit Sector Accountability
The availability of tools like the Nonprofit Explorer, combined with the IRS datasets, plays a crucial role in promoting accountability within the nonprofit sector. This transparency:
- Encourages best practices in nonprofit management
- Helps donors make informed decisions about their contributions
- Facilitates research and analysis of sector-wide trends
- Supports policymakers in developing effective regulations
What impact does increased transparency have on the nonprofit sector? Greater transparency often leads to improved public trust, more efficient allocation of resources, and a stronger, more effective nonprofit ecosystem overall.
As the nonprofit sector continues to evolve, the importance of accessible, comprehensive data cannot be overstated. The IRS Tax Exempt Organization Search Bulk Data Downloads, along with complementary resources like the Nonprofit Explorer, provide invaluable tools for understanding and improving the landscape of tax-exempt organizations in the United States.
Tax Exempt Organization Search Bulk Data Downloads
You can download data sets of information about organizations’ tax-exempt status and filings.
Downloading Instructions
- Choose a data set.
- Download the compressed zip file, it’s a large file.
- Extract the large delimited text file from the zip file.
- Open the delimited text file using word processing software.
- Do not use a text editing program, it could cause formatting and appearance issues.
The data set files are updated monthly.
Publication 78 Data
List of organizations eligible to receive tax-deductible charitable contributions. If an organization uses a “doing business as” name, is not listed in the file. Only the business name registered with the IRS is in the listing.
Format: Pipe-Delimited ASCII Text
Last Updated: July 12, 2021
Automatic Revocation of Exemption List
The list of organizations whose federal tax exemption was automatically revoked because they did not file a Form 990-series annual return or notice for three consecutive tax years.
Revocation date of certain organizations
Organizations that do not file a required annual information return or notice for three consecutive years automatically lose their tax exempt status by operation of law. An automatic revocation is effective on the original filing due date of the third annual return or notice (the “Revocation Date”). Due to the COVID-19 emergency, this year the IRS extended the filing dates for these returns and notices due from April 1 through July 14 to July 15, 2020. Organizations eligible for this relief that failed to file for the two previous years and did not file by July 15 have automatically lost their tax exempt status. Due to systemic limitations, these organizations appear on the auto-revocation list showing a Revocation Date between April 1 and July 14, 2020. However, the Revocation Date for these organizations is July 15, 2020. For more information on automatic revocation, including how to request reinstatement, see Automatic Revocation – How to Have Your Tax Exempt Status Reinstated.
Format: Pipe-Delimited ASCII Text
Last Updated: July 12, 2021
Form 990-N (e-Postcard)
The most recent e-Postcard filings on record.
Format: Pipe-Delimited ASCII Text
Latest data posting: July 26, 2021
Form 990 Series
Form 990 data USB mailings are delayed due to COVID-19.
The most recent 990 Series filings on record.
Format: XML, Individual PDF Files
Latest data posting: July 26, 2021
Related Links
Types of Tax-Exempt Organizations | Internal Revenue Service
Tax Information for Charitable Organizations
Tax information for charitable, religious, scientific, literary, and other organizations exempt under Internal Revenue Code (“IRC”) section 501(c)(3).
Life Cycle of a Social Welfare Organization
Information, explanations, guides, forms, and publications available on irs.gov for tax-exempt social welfare organizations.
Life Cycle of an Agricultural or Horticultural Organization
Links to helpful information about points of intersection between agricultural or horticultural organizations and the IRS, including access to explanatory information and forms that an organization may need to file with the IRS.
Life Cycle of a Labor Organization
Links to helpful information about points of intersection between labor organizations and the IRS, including access to explanatory information and forms that an organization may need to file with the IRS.
Life Cycle of a Business League (Trade Association)
Links to helpful information about points of intersection between business leagues and the IRS, including access to explanatory information and forms that an organization may need to file with the IRS.
Social Clubs
A brief description of the requirements for exemption under Internal Revenue Code section 501(c)(7).
Fraternal Societies
A brief description of the requirements for exemption under Internal Revenue Code (“IRC”) sections 501(c)(8) and 501(c)(10).
Employee Benefit Associations or Funds
A brief description of the requirements for exemption for employees’ associations under IRC sections 501(c)(4), 501(c)(9), and 501(c)(17).
Veterans’ Organizations
A brief description of the requirements for exemption of veterans organizations under Internal Revenue Code sections 501(c)(19) and 501(c)(23).
Tax Information for Political Organizations
Tax Information for political parties and campaign committees subject to tax under IRC section 527.
Other Tax-Exempt Organizations
Miscellaneous types of organizations that qualify for exemption from federal income tax.
Interactive Training
Learn more about the benefits, limitations and expectations of tax-exempt organizations by attending 10 courses at the online Small to Mid-Size Tax Exempt Organization Workshop.
| 501(c)(1) | Corporations organized under acts of Congress, which includes federal credit unions, and serve as instrumentalities of the United States | Yes |
| 501(c)(2) | Corporations created to hold titles for property owned by another nonprofit | No |
| 501(c)(3) | Organizations for any of the following purposes: religious, educational, charitable, scientific, literary, testing for public safety, fostering national or international amateur sports competition (as long as it doesn’t provide athletic facilities or equipment), or the prevention of cruelty to children or animals | Yes |
| 501(c)(4) | Civic leagues, social welfare organizations and local associations of employees, created to promote community welfare for charitable, educational or recreational purposes | No |
| 501(c)(5) | Labor, agricultural and horticultural organizations that are educational or instructive, including unions, created for the purpose of improving conditions of work, and products of efficiency | No |
| 501(c)(6) | Business leagues, chambers of commerce, real estate boards, etc, created for the improvement of business conditions | No |
| 501(c)(7) | Social and recreational clubs | No |
| 501(c)(8) | Fraternal beneficiary societies and associations, which provide payment of life, sickness, accident or other benefits to members | Yes |
| 501(c)(9) | Voluntary employees beneficiary associations, which provide payment of life, sickness, accident or other benefits to members | No |
| 501(c)(10) | Domestic fraternal societies and associations, which devote its net earnings to charitable, fraternal and other specified purposes, but NOT to provide life, sickness, or accident benefits to its members | Yes |
| 501(c)(11) | Teachers’ retirement fund associations | No |
| 501(c)(12) | Benevolent life insurance associations, irrigation companies, telephone companies, etc. , which have a mutually beneficial nature | No |
| 501(c)(13) | Cemetery companies | Yes |
| 501(c)(14) | State-chartered credit unions and mutual reserve funds | No |
| 501(c)(15) | Mutual insurance companies or associations which provide insurance to members substantially at cost | No |
| 501(c)(16) | Cooperative organizations to finance crop operations, also in conjunction with activities of marketing or purchasing associations | No |
| 501(c)(17) | Supplemental unemployment benefit trusts | No |
| 501(c)(18) | Employee funded pension trusts created before June 25, 1959 | No |
| 501(c)(19) | Post or organization of past or present members of the armed forces | No |
| 501(c)(21) | Black lung benefit trusts, funded by coal mine operators to satisfy their liability for disability or death due to black lung diseases | No |
| 501(c)(22) | Withdrawal liability payment funds, which providing funds to meet the liability of employers withdrawing from a multiemployer pension fund | No |
| 501(c)(23) | Veterans’ organizations created before 1880, to provide insurance and other benefits to veterans | No |
| 501(c)(25) | Title holding corporations or trusts with multiple parent corporations, which holds titles and paying over income from property to 35 or fewer parents or beneficiaries | No |
| 501(c)(26) | State-sponsored organizations providing health coverage for high-risk individuals | No |
| 501(c)(27) | State-sponsored workers’ compensation reinsurance organizations | No |
| 501(c)(28) | National railroad retirement investment trust, which manages and invests the assets of the Railroad Retirement Account | No |
| 501(c)(29) | Qualified health insurance issuers which has received a loan or grant under the CO-OP program | No |
| 4947(a)(1) | Non-exempt charitable trusts | No |
Nonprofit Organizations
Nonprofit Corporations: Not all non-profit organizations are filed with the Secretary of State.
Many, but not all, non-profit organizations choose to incorporate. A nonprofit corporation is created by filing a certificate of formation with the secretary of state in accordance with the Texas Business Organizations Code (“BOC”). “Nonprofit corporation” means a corporation no part of the income of which is distributable to members, directors, or officers [BOC, Section 22.001(5)]. A nonprofit corporation may be created for any lawful purpose, or purposes permitted by the BOC. Not all nonprofit corporations are entitled to exemption from state or federal taxes.
Unincorporated Nonprofit Associations: Section 252.001 of the BOC defines an unincorporated nonprofit association as an unincorporated organization consisting of three or more members joined by mutual consent for a common, nonprofit purpose. All unincorporated nonprofit associations, whether or not the entities are tax exempt, are subject to the provisions of the Uniform Unincorporated Nonprofit Association Act, Chapter 252 of the BOC.
The Act addresses a limited number of major issues relating to nonprofit associations; namely, the authority of the nonprofit association to acquire, hold and transfer property in its own name; the authority to sue and be sued as a separate legal entity; and the contract and tort liability of an association’s officers and its members. If you need further information regarding these provisions or how they might affect your association, you should contact your own legal counsel.
An unincorporated nonprofit association may, but is not required to, file with the secretary of state a statement appointing an agent authorized to receive service of process on behalf of the nonprofit association. The filing of the statement does not represent the creation of the nonprofit association; it simply provides a method for a nonprofit association to receive notice of any lawsuit brought against it.
Tax Issues for Nonprofits
Neither a nonprofit corporation nor an unincorporated nonprofit association is automatically exempt from federal or state taxes.
To become exempt, a nonprofit organization must meet certain requirements and apply with both the Internal Revenue Service and the Texas Comptroller of Public Accounts
Texas Nonprofit Resources
- Charitable Trust Section of the Office of the Attorney General
- Texas C-BAR: Community Building with Attorney Resources provides free legal assistance to Texas non-profit organizations.
- OneStar Foundation – OneStar promotes service and volunteerism, forges effective public and private partnerships, and works to increase the performance of non-profit organizations.
Federal Filing Requirements for Nonprofits
Most charitable nonprofits that are recognized as tax-exempt have an obligation to file an annual information return with the IRS. (There are very few exceptions: church-affiliated organizations and governmental organizations are among those not required to file.
) The IRS Form 990 is a public document, so make sure that your nonprofit’s board reviews it before it’s filed, and that it is completed thoughtfully as well as accurately. Look to the IRS website for guidance on annual reporting of the Form 990. If a nonprofit is incorporated in a state but has never been recognized by the IRS as “tax-exempt,” then it does not have an obligation to file an annual information return with the IRS. Note: Conversely, even if your organization fits one of the few exceptions to mandatory annual filing with the IRS, it may still have to file forms annually in the state where it is incorporated, or where it engages in fundraising activities. See information on required state filings.
Most small tax-exempt organizations with gross receipts that are normally $50,000 or less must file the IRS form 990-N, known as the “e-postcard”.
Exceptions to this filing requirement include:
Background
IRS information returns are known as the “990 series” because there are several forms that use the number 990, including Form 990, Form 990-EZ, and for the smallest nonprofits, Form 990-N.
Federal Filing Deadlines
A charitable nonprofit’s Form 990 must be filed with the IRS on the 15th day of the 5th month after the close of the nonprofit’s fiscal year.
What happens if our nonprofit fails to file?
If a charitable nonprofit fails to file the 990 on time, there can be penalties for late filing and income tax liability. If a nonprofit fails to file for three years in a row, the nonprofit’s tax-exempt status will be automatically revoked. Learn more.
- The IRS publishes the list of organizations whose tax-exempt status was automatically revoked because of failure to file a required Form 990, 990-EZ, 990-PF or Form 990-N (e-Postcard) for three consecutive years.
- Use Form 8868 to request an automatic 6-month extension of time to file.
- The 990-N due date cannot be extended, but there is no penalty for submitting it late.
Loss of tax-exempt status: Organizations that lose their tax exempt status are no longer eligible to receive tax-deductible contributions, and may be required to pay corporate income tax.
Read about what to do if your nonprofit’s status has been revoked.
Resources
Practice Pointer
Should the board review the annual report to the IRS? The redesigned Form 990 asks in Section B, line 11: “Has the organization provided a copy of its Form 990 to all members of its governing body prior to filing the form?” The Form goes on to ask the organization to “describe the process used by the organization to review” the Form 990.” As a result, many nonprofits choose to adopt a basic financial policy that requires full board review of the Form 990 before filing with the IRS. Read about other Form 990 good governance practices.
Nonprofit Organizations | Virginia Tax
Retail Sales and Use Tax Exemptions for Nonprofit Organizations
Nonprofit Exemption Requirements
To qualify for an exemption, a nonprofit organization must meet all of the following requirements:
- The organization must be exempt from federal income taxation under Sections 501(c) (3), 501(c) (4) or 501(c) (19).
If the organization has annual gross receipts less than $5,000, and is organized for one of the purposes set in Internal Revenue Code 501(c) (3) or 501(c) (4), it must submit a mission statement. For more information, visit the IRS website at www.irs.gov/eo or you may contact them at 877.829.5500. - Proof that the organization is in compliance with Virginia’s law relating to organizations that solicit contributions in Virginia. For additional questions, contact the Department of Agriculture and Consumer Services (VDACS) at 804.786.1343 or visit their web page (see Virginia Solicitation of Contributions Law for details). You may search here to see if your organization is registered and print documentation.
- The annual administrative costs of the organization, including salaries and fundraising, must not exceed 40% of its annual gross revenue.
- An organization with gross annual revenue of at least $750,000 in the previous year must provide a financial review performed by an independent Certified Public Accountant (CPA). Note: Virginia Tax may require an organization with gross annual revenue of at least $1 million in the previous year to provide a financial audit performed by an independent CPA in lieu of a financial review.
- The organization must provide an estimate of the total amount of tangible personal property purchased in Virginia for the preceding year and the current year. Do not include purchases of any tangible personal property that will be furnished to a contractor performing construction, installation, repair or any other service with respect to real property.
- If the organization is required to file a federal Form 990, 990EZ, 990PF, or 990N with the IRS, a copy must be provided to Virginia Tax. If the organization is not required to file, the names and address of two members of the organization’s Board of Directors must be provided along with the location of the financial records. Note: All financial records must be available for inspection.
If the organization has annual gross receipts less than $5,000, and is organized for one of the purposes set in Internal Revenue Code 501(c) (3) or 501(c) (4), it must submit a mission statement. For more information, visit the IRS website at www.irs.gov/eo or you may contact them at 877.829.5500.
Note: Virginia Tax may require an organization with gross annual revenue of at least $1 million in the previous year to provide a financial audit performed by an independent CPA in lieu of a financial review.Reference: Virginia Code 58.
1-609.11
Apply for a Retail Sales and Use Tax Exemption
Nonprofit Online is a quick, efficient, and secure way for you to apply for and print your sales and use tax certificate. You can access Nonprofit Online to edit certain registration information and renew your expired or expiring exemption, as well as reprint lost certificates without having to contact us. You may also send secure email to us through a protected environment.
This service is available to anyone requesting a sales and use tax exemption for a nonprofit organization or a nonprofit church. You will be required to create a user ID and password in order to register your organization.
To apply or to search for a nonprofit organization, go to Nonprofit Online.
Unable to Apply Online?
Organizations that are unable to apply online can download Form NP-1 Application and Instructions or contact the Nonprofit Exemption Team at 804.371.4023 to request an application. Completed applications should be sent to Virginia Tax, Nonprofit Exemption Unit, P.
O. Box 27125, Richmond, Virginia 23261-7125, or faxed to 804.786.2645.
Requirements for Nonprofit Churches
Nonprofit churches have 2 options to request a retail sales and use tax exemption:
- Self-issued exemption certificate, Form ST-13A: Code of Virginia Section 58.1-609.10(16) allows nonprofit churches to use the self issued exemption certificate Form ST-13A. Title 23 of the Virginia Administrative Code (VAC) 10-210-310 provides an exemplary listing of taxable and exempt purchases for nonprofit churches qualifying for this option.
- Apply for a Virginia Tax-Exempt Number: Code of Virginia Section 58.1-609.11 provides a broader exemption to nonprofit organizations and churches seeking a sales and use tax exemption. All exemption requirements under Code of Virginia 58.1-609.11 must be met to qualify. Churches electing this option must submit a detailed financial statement for the prior year’s accounting period.
Nonprofit Online Tips
- If you are a returning user and you are unable to retrieve your user ID and password information, you must sign up as a new user and create a new user ID and password. Click on the “Change Access Request” option to associate your new user ID and password with the record. Once you receive an email confirmation that the Change Access Request has been approved, you may login to access your record.
- Once you have submitted an application online changes and additions cannot be made. Please contact the Nonprofit Unit at 804.371.4023 if you have questions.
- You may check the status of an application by logging into Nonprofit Online using your user ID and password.
- You may submit required documents by upload or by mail.
- You may search for a nonprofit organization at Nonprofit Online, by entering the name of the organization or the federal identification number.
For additional information, see Nonprofit Online FAQS.
Sales and Use Tax Exemption for Veterans Service Organizations
Veterans Service Organizations (VSOs) that are tax exempt under Internal Revenue Code 501(c)(19), as well as organizations with annual gross receipts below $5,000 that serve one of the purposes in IRC 501(c)(19), may apply for a Virginia sales and use tax exemption certificate.
The sales tax exemption does not apply to the following:
- Taxable services, such as hotel accommodations
- Tangible personal property used primarily for providing insurance benefits
- Items used primarily for social and recreational activities
For more information, see Tax Bulletin 16-5.
Important Information about Purchases of Meals and Catering
Nonprofit organizations and nonprofit churches may use their retail sales and use tax exemption certificates issued pursuant to Va. Code § 58.1-609.11 to make exempt purchases of food and meals, as well as certain “taxable services” provided in connection with the provision of meals.
Virginia Tax will no longer deny these organizations an exemption on purchases of catering and meals on the basis that the entity is purchasing a taxable service. In addition, we will no longer deny the nonprofit exemption on the basis that the qualifying entity has purchased the meals and related services for consumption by individuals. Rather, Virginia Tax will now apply a test to determine whether the purchases are made for the qualifying entity’s use or consumption.
See Tax Bulletin 16-3 for more details.
Sales Tax Rate Chart (Effective July 1, 2018)
| AREA | SALES TAX RATE |
|---|---|
| Historic Triangle | 7% |
| Northern Virginia | 6% |
| Hampton Roads | 6% |
| Elsewhere throughout Virginia | 5.3% |
Contact Information
What is a 501(c)(3)? – Foundation Group®
501(c)(3) organizations fall into one of three primary categories: public charities, private foundations, and private operating foundations.
Public charity. Public charities are what most people recognize as those organizations with active programs. Examples include churches, benevolence organizations, animal welfare agencies, educational organizations, etc. They usually receive a substantial portion of its revenue from the general public or from government.
In order to remain a public charity (and not a private foundation), a 501(c)(3) must obtain at least 1/3 of its donated revenue from a fairly broad base of public support. Public support can be from individuals, companies and/or other public charities.
Donations to public charities can be tax deductible to the individual donor up to 60% of the donor’s income2,3. Corporate limits are generally 10%. In addition, public charities must maintain a governing body that is mostly made up of independent, unrelated individuals4.
Private foundation. A private foundation is often referred to as a non-operating foundation, as they typically do not have active programs.
They are not required to be publicly supported, so revenue may come from a relatively small number of donors, even single individuals or families.
Private foundations are usually thought of as nonprofits which support the work of public charities through grants, though that is not always the case. Donations to private foundations can be tax deductible to the individual donor up to 30% of the donor’s income. Governance of a private foundation can be much more closely held than in a public charity. A family foundation is an example of a private foundation.
Private operating foundation. The third category is the least common: private operating foundation. These organizations often maintain active programs similar to public charities, but may have attributes (such as close governance) similar to a foundation. As such, private operating foundations are often considered hybrids. Most of the earnings must go to the conduct of programs. Donation deductibility is similar to a public charity.
90,000 501 (C) (3) ORGANIZATION RULES – BUSINESS
If your organization is not a profit, you can apply for 501 (c) (3) status to become tax exempt. This release can go a long way in helping noncomm
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If your organization is not a profit, you can apply for 501 (c) (3) status to become tax exempt.This exemption can go a long way in helping nonprofits make ends meet, as money earned by nonprofits is usually allocated for purposes that the organization supports. However, ensuring that 501 (c) (3) is properly followed is critical to avoid any future tax or legal penalties. These requirements range from requirements related to paying employees or contractors, selecting and compensating board members, and ensuring that you properly file taxes annually.
501 (c) (3) Application
To obtain 501 (c) (3) status, an organization must complete a 501 (c) (3) application with the IRS.
Before even starting this process, your organization must be recognized as a trust, association or corporation. If you have not yet applied for one of these, you must do so prior to applying for 501 (c) (3) organization status.
You will also need to include in your application a detailed description of your proposed activities that your organization will undertake.This will give the IRS an insight into the purpose of your nonprofit organization and why it would benefit from tax exemptions. In addition, you must state the purpose of the tax exemption. These are described in IRS Publication 557.
According to the IRS, tax exemption targets include those organizations classified as charitable, religious, educational, scientific, literary, public safety, recreational sports, and child or animal abuse prevention.They define charity as helping the poor, the poor and the disadvantaged. Promoting religion or education, eradicating prejudice or discrimination, or protecting civil rights are considered viable tax-exempt goals.
Reviewing the 501 (c) (3) list of nonprofits can help you determine if your list is acceptable.
For an application to be classified as 501 (c) (3), a number of forms must be completed. You can include information about the power of attorney if you expect your organization to be represented by a professional for legal advice in the future.By submitting this information, you are authorizing your attorney to speak on your behalf with the IRS about your application and tax exempt status.
When filing a 501 (c) (3) application, you will be required to provide a user fee. Depending on the type of your organization, this will cost between $ 275 and $ 600. Ensuring that this amount is paid and your application is completed is very important to expedite the review and approval of your application. Be sure to include your employer identification number, if you have one.If not, you should apply for one prior to filing with the IRS. If you miss certain information on your application, the IRS will return it to you for editing rather than just automatically rejecting it.
You will need to provide exact copies of your group’s organizational documents with your application. For example, if your group is a corporation, these could be your incorporation documents. If your organization does not exist for at least three tax years, you need to provide financial information for the current year and a proposed budget for the next two years, including all income and expenses.
Finally, there are certain places where you need to submit your application, depending on how you deliver it. Express mail and other services must be sent to a different shipping address than standard US mail, so be sure to include the correct address on the IRS website before submitting your application.
If your application is approved, you will receive a decision letter from the IRS outlining your authorizations as a 501 (c) (3) organization. Typically, the letter takes effect from the date of the organization’s creation, provided that the application was filed within 27 months from the date of its foundation.
If your application to join the 501 (c) (3) organization is denied, the IRS sets out the appeal procedure. You can file an application with a full explanation of the reasons for your appeal within 30 days of the date you receive the decision letter. You must specify on your application whether you want the Appeals Service to be considered. At this stage, you can also ask for a representation from a trustee or chief executive officer of the organization, or from an attorney, certified accountant or other proxy.
501 (c) (3) Rules
For the IRS to consider your organization tax exempt, your organization must operate solely for the purposes specified in section 501 (c) (3) of the Internal Revenue Code. Under no circumstances can the profits of your group be transferred to a shareholder or individual. The IRS also stipulates that organizations of this type cannot focus primarily on lobbying or trying to influence political candidates.
Generally speaking, 501 (c) (3) is a charitable organization.It cannot be organized for the purpose of benefiting private interests or making a profit. If the IRS determines that the organization has violated these rules, various taxes and fines may be levied on any income of the organization.
Nearly all 501 (c) (3) entities must file a form called the Annual Exempt Entity Form when filing their tax return. This does not apply to churches, other religious groups, or certain government agencies.Careful record keeping is essential to ensure that these documents are as accurate as possible. Failure to properly document and report the costs and benefits of an entity may result in cancellation of its 501 (c) (3) status or imposition of tax penalties. If your organization’s tax-exempt status is ever revoked, you may need to file tax returns, such as those used for corporations, estates, or trusts.
501 (c) (3) Member Salaries
Payroll for non-profit organizations is a bit of a tricky issue, mainly because different rules apply to these organizations than to traditional for-profit companies.At a basic level, the most important thing you can do to ensure that your organization is operating with integrity is to become familiar with and follow the pay rules. In addition, it is important to keep careful records so that you can document which funds were paid to which employees. At the same time, those who work in non-profit organizations can and should be paid. The point of the organization is that it cannot be profitable, but those who make it function are not expected to volunteer.
In most cases, it may be better to pay workers as employees rather than subcontractors. Regardless of your organization’s non-profit status, the IRS still requires you to follow the rules governing whether an employee is a contractor or an employee. They use a 20-point test to assess the true status of an employee, including questions such as whether an individual receives employee-like benefits or whether the organization has the right to control how an employee does his job.If you choose to classify workers as contractors and the IRS later determines that you should have designated them as employees, you will be responsible for the employer’s share of any applicable payroll taxes. It is recommended that you consult with an accountant and tax specialist before making this kind of decision.
Also, figuring out how to reward 501 (c) (3) staff can be challenging. Commercial organizations have a variety of options, including hourly wages, salaries, or base pay plus commissions.Due to the nature of nonprofits, it could be viewed as a conflict of interest if any commission or percentage of earnings is paid to employees. Not only can this be alarming for the IRS, but such a compensation structure can encourage behavior that your organization does not support, including illegal or fraudulent behavior.
501 (c) (3) Members of the Management Board
The Board of Directors is an integral part of a non-profit organization. The members of this governing board help the organization make important decisions so that it can stay on track and focus on its primary goal.Positions on the 501 (c) (3) board of directors are usually temporary and often elected or voluntary.
It is best if the board members of the organization are not employees at the same time. This helps to avoid conflicts of interest. An organization can also elect elected or appointed officers to serve on the board of directors. Any positions of this kind should be stated in the articles of association or articles of association of the organization.
When it comes to reimbursing board members, the IRS has rules to prevent any questionable behavior.If a nonprofit organization pays its board members more than $ 600 in a calendar year, the nonprofit must issue a Form 1099 to those individuals for inclusion in their taxes. Many organizations choose not to reimburse board members, and those in these positions are often happy to do so to educate, help others, or gain additional experience in this area.
According to the IRS, board members are allowed to deduct expenses just like an independent contractor would.These costs include mileage or other travel-related expenses.
Can a non-profit organization donate?
A nonprofit organization may donate money to other nonprofit organizations. However, since the funds at your disposal were most likely donated with the intention that they will be used to achieve its purpose, it can be difficult to donate these funds to another non-profit organization. However, subject to certain rules, this type of donation is within the scope of the law.
If you are planning to donate money to another nonprofit organization, first make sure there is no conflict of interest. No one in your organization or other organization, their friends, families or companies can receive any benefit from the donation. Second, make sure that the funds you donate have not been transferred to your organization with restrictions. Donors sometimes provide funds with the stipulation that they will only be used in a specific way. In this case, you must only use them for their intended purpose and cannot donate these funds to another organization.
It would also be a good idea to inquire about the financial plans and well-being of the 501 (c) (3) to whom you plan to donate. It can be bad for your organization if you donate a significant amount of money to a group that is found to be in financial difficulties due to mismanagement or illegal handling of funds.
In addition, you must consider the well-being of your own organization. Before donating money to another 501 (c) (3), make sure that it doesn’t jeopardize your own nonprofit in any way.Donating should not conflict with your organization’s values, as it could negatively affect your reputation or public opinion. In addition, you must ensure that the other organization is not in any way in competition with your organization or its goals. At the end of the day, the health and reputation of your nonprofit organization should come first.
90,000 INTRODUCTION OF FORM 990: TAX FORMS FOR NON-PROFIT ORGANIZATIONS – NON-PROFIT
Nonprofits are generally tax-exempt and do not have to file income forms, but the Internal Revenue Service still requires 90,069 a lot of 90,070 information – all of which must be painfully extracted and carefully organized in an IRS 990 Form.
Not every tax form requires tax. Sometimes the information is what the IRS is after. For example, Forms 990, 990-EZ, and 990-PF (three Forms 990) are considered Information Returns or Reporting Forms. The public uses information about these revenues to evaluate nonprofits and how they operate. In these forms, you can see what the nonprofit’s income and expenses are, how much it pays its key employees, and other useful information that can help you evaluate what the nonprofit is doing.
Form 990 is a fairly important form for public disclosure because the law does not require typical annual reports from non-profit organizations. Even financial audits by independent accountants are not required by law (except in special cases).
Organizations that must file Form 990 are not required to pay federal income tax on income related to their exempt purposes and programs. However, many private foundations are required to pay an excise tax based on their investment income.
Once an organization submits a completed Form 990 or Form 990-EZ, it becomes available for review. This public access is required by section 6104 of the Internal Revenue Code. Form 990-PF (for private foundations) must also be submitted for public inspection by a private foundation, but this usually requires a meeting and travel to the foundation’s headquarters.
Organizations That Must File Form 990
The IRS wants to know about certain groups every year.These groups include the following:
- Private foundations. Every private foundation must file Form 990-PF, regardless of size.
- Large non-profit organizations. Most nonprofits with income over $ 25,000 typically must file a Form 990 or 990-EZ.
- All Others: Organizations that are exempt from taxes under sections 501 (c), 527, or 4947 (a) (1) of the US Internal Revenue Code and are not eligible for the exemptions listed in the following section must file 990 or 990 -EZ every year without fail.
Organizations that do not need to file 990
Some organizations are exempt from filing any of the 990s Forms. To ensure that your organization is exempt, review the following list of exempt organizations:
- Small Nonprofit Organizations : Organizations with an annual income of $ 25,000 or less get free travel, likely due to the fact that the IRS itself has staff and cost constraints.
- Religious organizations. Virtually all religious organizations can skip registering Form 990 regardless of size. Hallelujah!
- Subsidiaries of Other Non-Profit Organizations: The IRS Believes in Nepotism! Any subsidiary whose parent organization or national headquarters filed 990 for the entire organization gets the opportunity to skip the formalities.
- Nonprofits not already in the system: Nonprofits that have not applied to the IRS for federal income tax exemptions do not have to file Form 990 because the IRS will not even know where the form is from.
- Religious Schools: A school below college level that is affiliated with a church or run by a religious order does not have a home form 990.99092
- Missions and missionary organizations. This category includes a missionary society sponsored or associated with one or more churches or church organizations if more than half of the society’s activities are conducted in or against other countries.
- Government agencies: A government agency that receives a free tax credit because it provides basic government services (such as a university) does not have to file Form 990.99092
- Government Corporations: A corporation organized by Act of Congress that is an “instrument of the United States” does not have to file Form 990 because it is a part of the government and is exempt from federal income taxes under 501 (c) (1).).
Obtain EIN for Nonprofits through Guidestar or Citizenaudit search results
I currently have a list of non-profit organizations and companies. I would like to collect their EIN using calculations. I would appreciate your help on how to do this.
My current idea was to go to the Guidestar website (http://www.guidestar.org/Home.aspx) and, if I could somehow navigate to the appropriate Guidestar profile page, grab the EIN for organizations.
However, when I search for an organization like “Somerville Community Corporation” on the Guidestar page, I notice that there is a general one: http://www.guidestar.org/SearchResults.aspx When I click on the actual page, it pre-assumes knowledge of the EIN in its URL (23-7293380).
http://www.guidestar.org/organizations/23-7293380/somerville-community-corporation.aspx
I would appreciate any help in obtaining an EIN!
UPDATE: Another alternative is to use civilaudit.org. But again, the URL assumes knowledge of the EIN. How to solve this problem?
- This found a search term that might be useful to developers.firstgiving.com/documentation/nonprofit-search-api. If you try, use requests
- In the same vein as @ MrE’s suggestion: apps.irs.gov/app/eos/forwardToPub78Download.do
- MRE and AP thanks a lot! AP, what search terms did you use? I’m trying to find if there is a similar EIN data file for regular corporations
If you download and unzip the link provided by a-p you can do something like
from collections import defaultdict import csv from operator import and_ import re DATAFILE = 'data-download-pub78.txt 'def get_words (s): return re.findall (' & lsqb; a-z & rsqb; + ', s.lower ()) def build_index (items): word_index = defaultdict (set) ein_index = {} for ein, name in items: for word in get_words (name): word_index & lsqb; word & rsqb; .add (name) ein_index & lsqb; name & rsqb; = ein return word_index, ein_index with open (DATAFILE, 'rb') as inf: incsv = csv.reader (inf, delimiter = '|') items = (row & lsqb;: 2 & rsqb; for row in incsv if len (row)> = 2) words, eins = build_index (items) def find_matches (s): wordlst = (words & lsqb; wd & rsqb; for wd in get_words (s)) charities = reduce (and_, wordlst) res = & lsqb; (eins & lsqb; ch & rsqb ;, ch) for ch in charities & rsqb; res.sort (key = lambda x: int (x & lsqb; 0 & rsqb;)) return res def main (): while True: s = raw_input ('Enter all or part of a charity name, or nothing to quit:') .strip () if s: charities = find_matches (s) if charities: print ('{} matches:'. format (len (charities))) for ch in charities: print ('{}: {}'. format (* ch)) print ('') else: print ('No matches found.') else: break if __name __ == '__ main__': main () which then works like
Enter all or part of a charity name, or nothing to quit: Somerville Community 5 matches: 042740838: Community Action Agency of Somerville Inc.222506464: Somerville Community Access Television Inc. 237293380: Somerville Community Corporation Inc. 432083625: Somerville Hispanic Association for Community Development Inc. 743021520: Somerville Community Library Association - you are awesome! I can’t believe you did so much work for me!
- can you please help me understand what’s going on here: wordlst = (words & lsqb; wd & rsqb; instead of wd in get_words (s)) charities = reduce (and_, wordlst)
- I think I understand now.you create generator objects (denoted by parentheses) and call the dictionary you created below. Your code is so interesting! I learned a lot …
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wordsis a dictionary; for each word, there is a set of all charity names that contain that word. Wordlst then returns the corresponding set of names for each word in the input, andreduce (and_finds the intersection of those sets, which is the set of all charity names that contain all of the input words.We convert it to a list of ein / name pairs, sort it by ein in ascending numerical order, and return.
