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Tax Tip 2022-81, May 25, 2022 ¡ª To be tax-exempt under Section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for any of these purposes: charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, or preventing cruelty to children or animals.

Once a foundation has been created under state law and begins to operate, it may want to be recognized as exempt under Internal Revenue Code section 501(c)(3). In addition to exemption from federal income taxation, foundations recognized as exempt under the Internal Revenue Code may enjoy collateral benefits under the Internal Revenue Code, as well as under state or local income, property, sales, use or other tax provisions.

Miscellaneous types of organizations that qualify for exemption from federal income tax.

Letters (K-O) of the Charities and Nonprofits sitemap developed to make it easier for website users to navigate.

Discussion of organizations subject to the dues disclosure and proxy tax provisions in Code section 6033(e)

Exempt organizations revenue rulings for the years 1979-1954.

Sample questions - Limited liability company applying for exemption

Filing requirements for Schedule A, Form 990

Nonprofit status may make an organization eligible for certain benefits, such as state sales, property, and income tax exemptions; however, this corporate status does not automatically grant exemption from federal income tax. To be tax exempt, most organizations must apply for recognition of exemption from the Internal Revenue Service to obtain a ruling or determination letter recognizing tax exemption.

Can I take a deduction for a charitable contribution I make to any tax-exempt organization?