For further information on nonprofit law, we recommend you visit Nonprofits Online: (www.nonprofit.org). WHAT IS TAX EXEMPTION?

Classification as a tax-exempt organization by the federal government generally means that the organization is not required to pay taxes on its income (interest, dividends, and the like). In addition, there are some taxes that a state government can also exempt an organization from, such as taxes on real property (real estate) holdings. In the above examples, status as a federally tax-exempt organization is granted by the Internal Revenue Service (IRS) upon application.

The state in which your organization is incorporated may or may not have additional rules for seeking state-level exemption. For further information on tax exemption at the federal and/or state level, we recommend you visit the IRS web site: (www.irs.gov) or the web site of your state's Department of Revenue. NOTE: Not all tax-exempt organizations are nonprofits, and not all nonprofits are tax-exempt.

For the most part, however, a nonprofit organization that is involved in one of the program areas defined in the ... more.

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