How Would Non-Profits Attain Tax Id/Ein?

A non-profit organization is different from other business organizations in that they don’t churn out profits. Their aim is to benefit the society via various mediums. Thus it is only natural that they do not need to pay federal taxes on charitable contributions. However every non-profit organization needs to have an EIN to have the tax-exempt status. Additionally they need to possess the IRS Determination Letter to prove that they are tax-exempt organizations.

Why do non-profits need an EIN?

An EIN or Employee Identification Number, also referred to as tax ID, is a unique nine-digit number that is attached to the non-profit, and provided by the Internal Revenue Service or IRS.

  • It is used to identify a business entity or organization for tax purposes.
  • Obtaining an EIN is the first step to apply for the tax-exempt status.
  • It is also needed for all local and state reports/filings.
  • An EIN is required to apply for bank accounts and secure them in the name of the non-profit, apply for various permits and even hire employees for the organization.

Non-profit EIN Number Application:

A responsible or duly authorized member of the organization is eligible to apply for the EIN of the non-profit.  The following are required for non profit ein number application:

  • The Social Security Number of the person applying. Once the EIN is attained, there will be no need for the social security number.
  • The legal name and physical mailing address of the non-profit organization.

EIN application can be made in either of the 2 ways:

  • By downloading and filling IRS Form SS-4 from the IRS website. Then fax or mail it.
  • Apply online and get the confirmation letter emailed to you.

Don’t forget to choose the non-profit filing status for your organization. You will receive the EIN the very same day or the next day itself.