Internal Revenue Service

In the United States, the United States Treasury Department’s Internal Revenue Service (IRS) creates the definitions and regulations for much of the nonprofit sector. 

The IRS states “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.” (https://www.irs.gov/charities-non-profits/before-applying-for-tax-exempt-status)

It is important to note that IRS “approval” is not an endorsement of its mission. It is an acknowledgement that the organization meets the criteria for tax emption under the rules that governs the type of nonprofit (501(c)3, 501(c)4, etc.) 

One of our Content Expert, Givebutter, has a nice review of the types of nonprofits: https://givebutter.com/blog/types-of-nonprofits

The content found here is produced by the IRS and meant to aid you, the learner, in your interactions with them. It is important to note that before you act on any of this content, you should consult an accountant or attorney with expertise in nonprofit tax issues.