What is a Nonprofits/Other Entities?

Unlike traditional businesses, many nonprofit organizations typically are motivated by social, ideological, political or environmental goals — rather than by profit. All revenue generated by a nonprofit goes toward fulfilling these goals instead of being redistributed as earnings to shareholders.

Because they lack a profit motive, nonprofit organizations qualify for tax-exempt status under Internal Revenue Code (IRC) 501(a) as described in IRS Publication 557. Here are some examples of nonprofits:

Private foundations

Employees associations

Business leagues

Child care organizations

Advocacy groups

Educational institutions
Veterans associations
State-chartered credit unions
Retirement fund associations

Many other types of organizations also qualify for tax-exempt status. Even though they don’t have tax liabilities, however, these organizations must have a Federal Tax Identification Number.

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Why You Need to Apply for a Nonprofit Organization EIN

Once formed, your nonprofit organization will enjoy tax-exempt status. To qualify for this recognition, however, you must first apply for an Employer Identification Number (EIN) with the IRS. Also known as a Tax ID, this identification number is what federal and state agencies use to track your tax status from year to year.

In addition, many banks and businesses will request your nonprofit Tax ID before working with you. When soliciting contributions from donors, being able to provide your nonprofit EIN can add legitimacy — both to your organization and to the various causes it supports.

How to Apply for a Nonprofit Tax ID Number

Many organizations apply for a nonprofit EIN directly through the IRS (Form SS-4). However, filling out this application can be a tedious and time-consuming process, even for experienced tax experts who feel comfortable with complex legalese.

Fortunately, there is an easier and faster way to apply for your nonprofit Tax ID number.

At GovDocFiling, we’ve created an intuitive online application that you can fill out in just a few minutes. This simplified form asks all the relevant questions required for obtaining a nonprofit organization EIN — without the hassle or confusion.

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Types of Tax-Exempt Organizations

Nonprofits are legally formed at the state level by corporations, trusts, limited liability companies and unincorporated associations. Charitable organizations are perhaps the most common example people think of, but all of the following also are eligible for tax-exempt status, according to the IRS:

Corporations organized under an act of Congress

Cemetery companies (owned and operated exclusively for the benefit of their members or which are not operated for profit)

State-sponsored worker’s compensation reinsurance organizations

Cooperative organizations to finance crop operations

Withdrawal liability payment funds

Qualified nonprofit health insurance issuers

Cooperative service organizations of operating educational organizations

Title-holding corporations for exempt organizations

National Railroad Retirement Investment Trust (45 U.S.C. 231n(j))

Mutual reserve funds

Employee-funded pension trusts (created before June 25, 1959)

Title-holding corporations or trusts with multiple parents

Farmers’ cooperative associations

Religious and apostolic associations

Benevolent life insurance associations, mutual ditch or irrigation companies, mutual or cooperative telephone companies, or like organizations (if 85 percent or more of the organization's income consists of amounts collected from members for the sole purpose of meeting losses and expenses)

Qualified nonprofit health insurance issuers

Mutual insurance companies or associations

Black lung benefit trusts

State-sponsored high-risk health coverage organizations

Cooperative hospital service organizations

Determining Tax-Exempt Status

Before filing for a nonprofit EIN, be sure you are eligible for tax-exempt status. Under Section 501(c)(3) of the Internal Revenue Code, an organization can be tax-exempt only if it is organized and operated exclusively for the exempt purposes as defined in that section of the code. Any organizational profits cannot directly benefit any private shareholder or individual. The organization also must not be what is defined as an “action organization,” such as a lobbyist group or political campaign activist group. Other requirements also apply.

Ready to Apply for Your EIN?

GovDocFiling’s streamlined Tax ID filing services come with advantages that simplify the application process:

Our nonprofit EIN form is written in “plain speak” to minimize confusion and allow you to fill out the application as quickly as possible.

Our online form is available 24/7, allowing you to start the application process at your leisure. By contrast, the IRS’s online portal is buggy and frequently unavailable.

Our tax experts will carefully review your application before sending it to the IRS for approval. This verification step helps to eliminate errors and reduce unnecessary delays.

Our support team is available 24/7 by phone or email. The IRS offers limited email support, and its offices are closed on weekends, evenings and holidays.

Arguably the biggest advantage of our filing services is that we guarantee same-day delivery, with most nonprofit applicants receiving their Tax IDs in just a few hours — and we don’t charge $300-plus for rush delivery like most services do.

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Apply for Your Nonprofit Tax ID Today

If you’re looking for an easy, fast and hassle-free way to secure your nonprofit EIN, we’re here to help. To get started, fill out your Tax ID application by clicking on the button below. And remember, our tax-savvy customer service experts are available 24/7 if you have any questions.

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