No. An EIN and a tax-exempt number are not two separate things, because the IRS does not issue a standalone tax-exempt number at all. When people ask whether an EIN is the same as a tax-exempt number, the short answer is that the EIN is the number a tax-exempt organization uses — once the IRS approves your application for exemption, it ties that status to the EIN you already have and sends a determination letter as proof. There is no second number to get.
The confusion is understandable. Founders apply for an EIN, then file for exemption, then start hearing donors, banks, and state agencies ask for their “tax-exempt number.” What those people want is the EIN, paired with the determination letter that shows the IRS recognizes the organization as exempt.
What an EIN Is
An Employer Identification Number is a nine-digit code (formatted XX-XXXXXXX) that the IRS assigns to business entities operating in the United States.1Legal Information Institute. Employer Identification Number (EIN) Think of it as a Social Security Number for an organization: it identifies the entity that files returns, opens bank accounts, and pays employees. An EIN never expires, and the IRS never reassigns one to a different entity.
Corporations, partnerships, LLCs, trusts, estates, and tax-exempt organizations all need EINs. So does any business with employees or that withholds taxes on payments to non-resident aliens.2Internal Revenue Service. Employer Identification Number Notice what having an EIN does not tell you: whether the entity owes income tax. Millions of for-profit businesses have EINs and pay tax on every dollar of profit. The number is only an identifier.
Getting one is free. The IRS online application issues an EIN immediately upon approval, and Form SS-4 can also be faxed or mailed if you prefer the slower route.3Internal Revenue Service. Get an Employer Identification Number Any website that charges a fee for an EIN is a third party, not the IRS.
What Tax-Exempt Status Is
Tax-exempt status is a legal designation the IRS grants to organizations whose activities serve a purpose recognized in the Internal Revenue Code. The best-known category is Section 501(c)(3), covering charitable, religious, educational, and scientific organizations.4Internal Revenue Service. Exempt Organization Types It is not the only one. The code recognizes more than two dozen types of exempt organizations, including 501(c)(4) social welfare groups, 501(c)(6) business leagues, and 501(c)(7) social clubs.5Internal Revenue Service. Other Tax-Exempt Organizations
When the IRS approves an application for exemption, it does not issue a new number. It sends a determination letter that confirms the organization’s existing EIN and identifies the code section under which it qualifies. That letter is the proof of exempt status. The EIN stays exactly what it was.
The Order: EIN First, Then Exemption
You cannot apply for tax-exempt status without already having an EIN. The IRS will not accept Form 1023 (the full exemption application) or Form 1023-EZ (the streamlined version) without one.6Internal Revenue Service. Form 1023 – EIN Required to Apply for Exemption This is where the vocabulary slips. Founders get the EIN, file for exemption, receive the determination letter, and from that point on start calling that same EIN their “tax-exempt number.” Same digits, new context.
For a new nonprofit, the sequence is:
- Incorporate under state law as a nonprofit corporation, or organize as a trust or association.
- Apply for an EIN through the IRS website.
- File Form 1023 or Form 1023-EZ with the IRS and pay the applicable user fee.
- Receive the determination letter confirming exempt status and the code section it falls under.
Once the letter arrives, the EIN does double duty. It identifies the entity for all federal tax purposes, and, together with the determination letter, it demonstrates exempt status.
How Donors and Third Parties Verify Exempt Status
This is where the two pieces work together in practice. Anyone can look up an organization’s current tax-exempt status through the IRS Tax Exempt Organization Search. The tool lets you confirm eligibility to receive tax-deductible contributions, view Form 990 filings, check for automatic revocations, and read the determination letter itself.7Internal Revenue Service. Tax Exempt Organization Search Donors search by name or by EIN. There is no separate identifier they could search for, because none exists.
Exempt organizations also have to make their exemption application and their annual returns available for public inspection on request.8Internal Revenue Service. Exempt Organization Public Disclosure and Availability Requirements Between the online search tool and those disclosure rules, the EIN plus the determination letter is all the proof anyone needs.
Two Things Federal Exemption Does Not Cover
Because the question tends to come with an assumption that exempt status is a blanket, two boundaries are worth being explicit about.
State Taxes Are Separate
An IRS determination letter does not exempt an organization from state taxes. Nonprofit status is a state-law concept, and federal tax exemption is a separate federal designation.9Internal Revenue Service. Frequently Asked Questions About Applying for Tax Exemption Most states require a separate application for state income tax exemption, and sales tax and property tax exemptions usually involve additional filings with the state revenue department. A few states honor the federal determination for income tax purposes, but even they may require separate paperwork for sales or property tax. Some states also issue their own sales-tax exemption certificate, which people sometimes call a “tax-exempt number” — that one is a state credential, distinct from the federal EIN, and it only does what the state says it does.
Unrelated Business Income Is Still Taxed
Exempt status does not mean zero tax on everything. If an exempt organization earns $1,000 or more in gross income from a trade or business not substantially related to its exempt purpose, it has to file Form 990-T and pay tax on that unrelated business income.10Internal Revenue Service. Unrelated Business Income Tax A charity running a gift shop with mission-related merchandise is fine. That same charity renting out unused office space for profit has unrelated business income and owes tax on it. The EIN is what appears on the Form 990-T, the same as on every other return.
The Short Version
An EIN identifies your organization. A determination letter documents that the IRS recognizes your organization as tax-exempt. There is no third number in between. When someone asks for your “tax-exempt number,” give them your EIN and, if they need confirmation of your status, a copy of the determination letter or a pointer to the IRS Tax Exempt Organization Search.