Yes, every nonprofit needs a federal tax ID number, and the IRS issues that number, called an Employer Identification Number (EIN), free of charge. You need one whether or not your organization has employees, and whether or not it has received tax-exempt status.1Internal Revenue Service. Employer Identification Number The application takes minutes online, and the number stays with the organization for its life.
Why Every Nonprofit Needs an EIN
The EIN is a nine-digit number the IRS assigns to identify your organization’s tax accounts.2Internal Revenue Service. Publication 1635 – Understanding Your EIN Think of it as the organization’s equivalent of a Social Security Number. The IRS makes no exception for small groups, all-volunteer outfits, or organizations still waiting on a tax-exempt determination.
You will use the EIN to open a bank account in the organization’s name, hire and pay employees, file payroll returns, and submit annual information returns like Form 990. It is also a prerequisite for applying for tax-exempt status: the IRS will not accept Form 1023 or Form 1023-EZ without one.3Internal Revenue Service. Form 1023: EIN Required to Apply for Exemption
Even organizations the IRS automatically treats as exempt without a Form 1023, such as churches, integrated auxiliaries, and organizations with gross receipts normally no more than $5,000 per year, still need an EIN.4Internal Revenue Service. Instructions for Form 1023 – Application for Recognition of Exemption Under Section 501(c)(3) The identifier is required regardless of the application path.
How to Apply for an EIN
The fastest route is the IRS online application, which validates the information and issues the number immediately upon approval.5Internal Revenue Service. Get an Employer Identification Number The online tool runs Monday through Friday, 7:00 a.m. to 10:00 p.m. Eastern Time.6Taxpayer Advocate Service. Getting an EIN There is no fee.
If you cannot use the online system, for instance as a foreign applicant or when you need to complete the application across multiple sessions, you can file IRS Form SS-4 by fax or mail.7Internal Revenue Service. About Form SS-4, Application for Employer Identification Number Both routes take significantly longer than the online tool.
Wait to apply until your organization is legally formed. The IRS specifically warns against applying before you have filed articles of incorporation or other formation documents with your state.1Internal Revenue Service. Employer Identification Number
What You Need Before You Start
Have the following ready:
- The organization’s full legal name, mailing address, and entity type (corporation, trust, or association).
- The name and taxpayer identification number (SSN or ITIN) of the responsible party, meaning the individual who controls, manages, or directs the organization and its funds.8Internal Revenue Service. Responsible Parties and Nominees
The responsible party must be an individual, not another entity. Government entities are the only exception.8Internal Revenue Service. Responsible Parties and Nominees Each organization gets one EIN, and the IRS limits online applications to one EIN per responsible party per day.5Internal Revenue Service. Get an Employer Identification Number
Do Not Pay Anyone to File for You
Because the application is free directly from the IRS, any website that charges a fee is either an unnecessary middleman or an outright scam. Fraudulent sites have been known to charge up to $300 while mimicking IRS branding, including logos and the phrase “EIN Assistant.” The genuine application lives on irs.gov and costs nothing.5Internal Revenue Service. Get an Employer Identification Number
An EIN Is Not Tax-Exempt Status
This is where many founders trip up. Getting an EIN does not make your organization tax-exempt. The EIN is only a federal identifier. Tax-exempt status is a separate determination, and until the IRS grants it, the organization is treated as a taxable entity even though it holds a valid EIN.
Most nonprofits pursue recognition under Section 501(c)(3), but other categories exist, including 501(c)(4) for social welfare organizations, 501(c)(6) for trade associations, and 501(c)(7) for social clubs.9Internal Revenue Service. Exempt Organization Types To apply for 501(c)(3) status you file Form 1023, or the streamlined Form 1023-EZ if you qualify.10Internal Revenue Service. How to Apply for 501(c)(3) Status Unlike the EIN application, these carry real fees: $600 for Form 1023 and $275 for Form 1023-EZ, both filed electronically through Pay.gov.11Internal Revenue Service. Form 1023 and 1023-EZ: Amount of User Fee
One more distinction worth noting: your EIN is also not a state tax-exempt number. Some states issue their own separate number identifying organizations as exempt from state sales and use taxes. The EIN is strictly the federal identifier issued by the IRS.1Internal Revenue Service. Employer Identification Number
Keeping the EIN Current
Your EIN stays with the organization permanently, but the information attached to it does not. When the mailing address or responsible party changes, you must notify the IRS by filing Form 8822-B.12Internal Revenue Service. About Form 8822-B, Change of Address or Responsible Party – Business Changes to the responsible party must be reported within 60 days.13Internal Revenue Service. Form 8822-B, Change of Address or Responsible Party – Business
Nonprofit boards turn over regularly, and many organizations skip this filing. An outdated responsible party on file creates friction later, such as when the organization needs an EIN confirmation letter or has to sort out a filing question. If you need to verify or recover a lost EIN, call the IRS business and specialty tax line at 1-800-829-4933 to request a 147C verification letter.
Looking Up a Nonprofit’s EIN
To find the EIN of an existing nonprofit, whether yours or one you are vetting as a donor, use the IRS Tax Exempt Organization Search tool at apps.irs.gov. You can search by name, city, or state. The database draws from IRS Publication 78 data and filed Form 990 information, so it covers most organizations that hold a determination letter. Organizations whose exempt status has been automatically revoked also appear there, which is a useful way to check whether a charity is currently in good standing.