Non-Profit Organization Tax ID (EIN) Application

IRS Tax ID (EIN) Application

Apply for a Non-Profit Tax ID (EIN) Number

Not sure which type of Non-Profit to select? Use the entity definitions below to understand the correct type to select.

NON-PROFIT ORGANIZATION TYPE DEFINITIONS


Community or Volunteer Group +

A community or volunteer group is any specialized interest group that comes together to provide volunteer services. Examples of community or volunteer groups include neighborhood watch groups and preservation societies. These groups generally apply for EINs for banking purposes only.


Sports Teams (community) +

These organizations are comprised of sports teams or clubs primarily participating in live sporting events before a non-paying audience. Examples include bowling leagues and little league teams. These groups generally apply for EINs for banking purposes only.


Political Organization +

A political organization is:

  • An organization that influences the selection, nomination, election, or appointment of any individual to any public office or office in a political organization
  • An organization created and operated primarily for the purpose of accepting contributions, making expenditures, or both
  • A party, committee, association, or fund (including a separate segregated fund described in Section 527(f)(3) set up by a Section 501(c) organization, or a similar organization).

PTA/PTO or School Organization +

Parent-teacher associations (PTAs) act on behalf of the student. They speak to local and federal government on issues dealing with students.

Parent-teacher organizations (PTOs) are most often single-school groups that operate under their own bylaws and concentrate on activities at their building or in their town only.

School organizations are usually created by each school and are independent from similar groups at other schools. Some examples of school organizations are: high school marching bands and junior varsity cheerleading squads.


Homeowners/Condo Association +

A Homeowners/Condo Association is an organization of homeowners residing within a particular development whose major purpose is to maintain and provide facilities and services for the common enjoyment of the residents.


Memorial or Scholarship Fund +

A memorial or scholarship fund is set up in memory of someone who has died. The family may request that donations in memory of their loved one be sent to a specific charity, church, or school. Scholarship funds provide monies to be awarded to deserving students in the future.


IRA +

An individual retirement arrangement, or IRA, is a personal savings plan that allows you to set aside money for retirement, while offering you tax advantages. The IRS will only issue an EIN for an IRA trust account if the individual intends to file Form 990-T (Exempt Organization Business Income Tax Return) or Form 1041 (U.S. Income Tax Return for Estates and Trusts).

  • Contributions to an IRA are tax-deductible based on the individual’s marriage status and income level
  • Monies contributed to an IRA may be invested in stocks, bonds, mutual funds, annuities, bank savings accounts, certificates of deposit, government bonds, and investment trusts
  • Contributions cannot be of more personal and immediate investments such as a home or collectibles.

Other Non-Profit Organization +

Non-profit organizations include corporations, trusts, limited liability companies, and unincorporated associations that qualify for tax-exempt status under Internal Revenue Code (IRC) 501(a) as described in Publication 557 (Tax-Exempt Status for Your Organization).

Non-profit organizations include: public charities, private foundations, educational organizations, employee associations, veteran’s organizations, business leagues, state-chartered credit unions, child care organizations, and teachers’ retirement fund associations. This list is not all-inclusive.

Sole proprietors and partnerships cannot be considered for tax-exempt status. For-profit organizations cannot be considered for tax-exempt status.


FREQUENTLY ASKED QUESTIONS

What is a Tax ID (EIN) Number?

An EIN Number (also called a Tax ID) stands for Employer Identification Number. Most people consider an EIN Number like a Social Security Number (SSN) for a business. The IRS requires most businesses to obtain an EIN in order to identify the business for tax purposes. Some advantages of getting your Tax ID / EIN Number include: the ability to open a business bank account or line of credit, to hire employees or to apply for certain business licenses.

Who needs a Tax ID (EIN)?

An EIN is required for many reasons for businesses, taxable entities and non-profit organizations. If any of the follow apply to your business or entity you will need an EIN:

If I don’t need an EIN why should I get one?

Even if your business, organization or entity is not required to obtain an EIN, it is highly recommended that you obtain one when starting or forming your business/organization for many reasons:

What is a Responsible Party?

Every EIN application requires that a person who is a principal officer, general partner, grantor, owner or trustor be designated as the primary point of contact and responsible for receiving correspondence from the IRS related to the entity. This person is called the “responsible party” by the IRS. This person controls, manages or directs the applicant entity and disposition of funds and assets. If there is more than one responsible party for the entity, please list the primary person that you would like the IRS to recognize as the responsible party.

Under the current revised version of the IRS EIN application, a responsible party is defined as:
“For entities with shares or interests traded on a public exchange, or which are registered with the Securities and Exchange Commission, “responsible party” is (a) the principal officer, if the business is a corporation, (b) a general partner, if a partnership, (c) the owner of an entity that is disregarded as separate from its owner (disregarded entities owned by a corporation enter the corporation’s name and EIN), or (d) a grantor, owner, or trustor if a trust.”

“For all other entities, “responsible party” is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible party.”