State law governs nonprofit status, which is determined by an organization’s articles of incorporation or trust documents. Federal law governs tax-exempt status. The Internal Revenue Code specifically refers to exemption from federal income tax.
Below are the steps you need to take before you can apply for tax-exempt status:
- Determine if your organization is one of the following:
- Gather your organization documents.
- Determine your state’s registration requirements.
- Obtain an employer ID number (EIN) for your new organization.